MNRB back to profit where Kawan profit remained consistent 

After a quarter of loss due to claim for Kelantan flood. MNRB back to strong earning with 36 cents registered for the quarter.  This put MNRB back to our strong buy call with target back to RM 8.00.   However, we hope MNRB will learn with a better hedge in case for unforeseen events in the future.  Including Air Disaster, flood & etc as climate changes will lead to more potential disaster.  As long as not involving in any risky loan portfolio, we believe MNRB is a jewel in town for a long term hold.

Whereas Kawan reported a consistent result but not so exciting.  Probably the catalyst event will be its new plant that will contribute significantly in 2016.  We still like its business model and we maintain our target at RM 3.00.

.Our The other 2 top picks due to bad loan reserve.  Their quarterly results are somehow affected but we still like both MBSB And AFFIN.  TWREIT remained our pick in best undervalued REIT as the NTA at RM 1.9 is a big discount compare to current trading price of RM 1.27.

We disposed Fortune REIT HK, CCB, ABC and Tasco

We continue selling our Hong Kong portfolio riding on strong HKD vs. RM will give us another additional 20% gain. We sold Fortune REIT since our purchase at HKD 3.70. Excluding dividend and currency gain we have a healthy 100% gain over 3 years holding time.

We also reaped partial profit from CCB and ABC. Even thought the variation of the banks are still low. We again taking advantage of strong HKD boosting all our profit by additional 20%.

We sold Tasco at RM 4.380 and bought MBSB at RM 1.90 and MNRB at RM 3.840 respectively.

Strong quarter for Paramount, Tomei and Padini but Bstead Plantation

Paramount shown a good quarter.  We continue to expect it’s share price to benefits from its new campus and realise of its recent property projects.

We also like Tomei and Padini as both operate in intense competition.  Especially Padini with the direct competition from H&M and Uniqlo.  Tomei shown tremendous recovery from its plunge after gold prices correction from high.  New businrss in Comestic is a good move to us.

Whereas Boustead Plantation disappointed us since its listing.  

Is time to buy in property developer?

Entire Asia fighting rapid increase in property prices in the last few years has caused the market clam down.  Indeed, plentiful of property developing related counters’ stock prices are subdued.  From locally Malaysia to even China, prices of property developer PE dropped to as low as 5 to 8 times.  

I personally feel this is a good sign as developers in history mostly could not read the market well.  They keep building as long as in business angle they can make money but forget the overall supply and demand rule.  We may have a few outstanding companies can withstand in any situations.  Governmental measures are recommended to control the overall platform of the industry.

We believe there are values in the market.  We will start looking around for quality companies as an early entrance back to this segment.  Interest rates increase worldwide is already priced in in short term.  Asset related investment will still a good choice for wealthy investor to leverage their portfolio.

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