MNRB Рreinstated a buy call to accumulate 

After a tough season, our favourite MNRB consistent result return as our favourite.  We initiate buy on dip with a target price at RM 4.00.

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RHB and AMMB merger is a positive direction (if) and benefits OSK

By our market size, the market may probably reach maturity for financial industry.  The grow will not be significant and merger is always on the cards.  

Creating a four largest asset makes sense and also cutting unnecessary redundant cost.  Will boost profits.  The major beneficiary….  if not OSK then whoelse.  If OSK is to exit during the merger. They may can fetch a good price and fully valued back to the group asset.  If they’re not exiting. merger will boost profit and it’s competitiveness of it shares in RHB Bank.  The clear winners is EPF and OSK.

We bought some of its warrant at RM 0.285 before rumours spilled for the merger.

Insas and Ken Holdings under our Radar

As we mentioned before that we may start to buying back into property related companies.  However, we are not into pure developers as we cannot forecast the time of recovery.  We likes either developers with their own assets with recurring income as their portfolio. Alternative same as Paramount where portfolio is well divisified from different income stream.

We like OSK as it is still well diversified with property development.  Although yesterday result is profit reduced but we believe it’s valuation still cheap with strong book value.

on 2nd choice will be Ken Holdings. A small size developer undervalued but does have quality assets on hand.  With a few new projects will turn the company becomes vibrant.

lastly Insas, a consistent income across its portfolio and start to perform well.  well balance portfolio with financial arm that we believe will do well in 2018 can deliver potentially more sterling results.

However, no need to jump into the ship. Buy slowly and accumulate.  OSK below RM 1.70. Insas and Ken below RM 1.00 can be accumulated with great confidence.

CIMB moving towards a full recovery

With its earnings continue to improve after a rationalization plan 2 years ago.  I expect CIMB will grow further with EPS at 15 times that can move stock price back above RM 7 to 8.  Another one quarter improve result will see it soon.

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