OSK, Trop, Manulfe, A&M, Success, Plabs, Multi-Sports, Bonia for a hold

Among our long term holding positions, we found results are flat to mixed. But still with a hold call however new stimulus is required to boost their earnings. We maintain a hold call for our portfolio below but without adding weight.

OSK 5.8 Cents
TROP 2.12 Cents
Manulfe 2.77 Cents
A&M 3.16 Cents
Success 6.45 Cents
Plabs 0.33 Cents
Multi-Sports 1.5 Cents
Bonia 1.61 Cents

MNRB and Lonbisc delivered flat but still consistent result

MNRB as our top bet among our top picks delivered flat but still consistent profit at 13.40 cents. It is still to us a strong buy call with a min target price of RM 8.00 if base on15 times PE for its peers.

On the other hand, Lonbisc 2.91 cents EPS is consistent. We maintain also our buy call to Lonbisc as it can be a second Kawan on its way. We also having a buy call with a target at RM 1.00 above.

US GDP grew at 3.9% against estimate 3.5% in Q3

A fairly strong result that will signal a potential mild rate increase next year. If trend persist with China reducing its rate, Japan, Europe loosening monetary policy. A super charge bull market may appear if Europe, Japan and China economy return to normal growth. We start to suspect the normal cycle of major correction may not come at least 1 to 2 years from now.

We suggest stay invested with asset oriented, agricultural and climate change oriented counters.

Strong results from White Horse and L&G

White Horse reported close to 20% increase in revenue and profit. A close to RM 3.00 valuation can be only fair to White Horse which has a strong branding plus consistent results.

L&G with 7.92 cents EPS is a strong result. But we think that can be certain one time clocked profit. But with half year 12.7 cents and potentially above 20 cents a year. L&G fair value should be higher than RM 1.00. We recommend a strong buy in L&G.

Slight improvement for Allianze and Kawan but opposite for Affin

Allianze and Kawan have both increased revenue and profit consistently again. We suggest a long term hold for both stocks with target a min. RM 15.00 and RM 3.00.

Affin however registered revenue gain but lowered profit. We suggest a hold with a merging play. As after CIMB, RHB and MBSB merger, the left entity will be Affin as clear target.

We upgrade Paramount to a strong buy target min RM 2.50

We believe Paramount new campus university income will start to contribute to the group earnings. Together with its development project surrounding the campus. A potential profit contribute leap frog may be possible if cost is to be managed well. With the current PE around 10 times and consistent dividend yield. We believe is a strong buy min at RM 2.50for next 12 months.

China rate cut strengthen theory of rooms to tackle global slowdown

Worry about Europe and other parts of the world may back into recession as there are no rooms to spur growth anymore due to loosening policies across years. However, as if No 1 world market US is on its track to grow. At least it can restarts its bond purchases. Japan continuous loosening policy. Now, China rate cut that can spur the world 2nd and 3rd economy of the world. We believe the market will maintain its upward trend for now.

A lacklustre week for market but remain positive

We remain positive about the market even KLCI has a weak buying pattern last week.  We like the outcome of APEC and G20 where more focuses in continue reviving the global economy.
We particular like China banks as the valuation is rather attractive. 

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