Malaysia - Market Direction & Strategy

Re: Malaysia - Market Direction & Strategy

Postby winston » Sat Aug 10, 2019 10:44 am

Cash is king!

By PANKAJ C. KUMAR

Source: The Star

https://www.thestar.com.my/business/bus ... UHPLIbU.99
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Re: Malaysia - Market Direction & Strategy

Postby winston » Thu Oct 03, 2019 9:23 am

STRATEGY – MALAYSIA
Alpha Picks: Still Holding Out For Thematic Plays


Our alpha picks again beat the FBMKLCI in September, easing 0.9% vs the FBMKLCI’s -1.8%, with gains led by Scientex and VS Industry (VSI) which should extend their outperformances.

For October, we remove Axiata and add Westports and MYEG.

While our strategy entails becoming more defensive towards year-end, we continue to hold out for the many long-awaited catalysts for GAQRS and MYEG.

October picks: GAQRS, MYEG, Scientex, TNB, VSI, Westports and Yinson.

Source: UOBKH

https://research.uobkayhian.com/content ... bd0fe6c828
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Re: Malaysia - Market Direction & Strategy

Postby winston » Sun Oct 13, 2019 8:40 am

How the budget affects listed firms

By TOH KAR INN

Budget 2020 spelt out incentives cutting across various sectors of the economy, from health to infrastructure, and from digital payment systems to real estate.

Below we list some of the project and the listed companies which could potentially be involved.


> KLANG LOGISTICS CORRIDOR

Government to spend RM8.3bil for the Serendah-Port Klang Rail Bypass as well as a dedicated privatised highway for commercial vehicles connecting Northport and Westport. Beneficiaries are likely to be Westports Holdings Bhd, MMC Corp, GAMUDA BHD, Sunway Construction Bhd, MUHIBBAH ENGINEERING (M) BHD and Gabungan AQRS Bhd.


> DEVELOPMENT OF PULAU CAREY
Sime Darby Bhd is the biggest land owner there. Previously there were reports of a major port to be built there.


> NATIONAL FIBERISATION AND CONNECTIVITY PLAN (NFCP)
Government to spend RM21.6bil to improve coverage of high speed digital connectivity nationwide. MCMC to finance at least half of the required investment with corresponding investments by the private sector telecommunications players via matching grant mechanism. Expected beneficiaries are telecommunication players such as TELEKOM MALAYSIA BHD, Maxis Bhd, Digi.com Bhd and Axiata Group Bhd


ADOPTION OF DIGITALISATION MEASURES FOR SMES
Government will provide a 50% matching grant amounting to RM500mil over five years to boost digital payment systems. Potential beneficiaries are payment system providers GHL Systems Bhd, Revenue Group Bhd, and Managepay Systems Bhd.


> THE E-WALLET INITIATIVE
There are some 45 companies providing e-wallet services. But the bigger non-bank players such as GREEN PACKET BHD and Axiata Group Bhd are expected to move aggressively to capitalise on the digital stimulus incentive. In relation to this, the government is offering RM30 for those above 18 and earning less than RM100,000 annually to spur the usage of e-wallets. Khazanah Nasional to implement this digital stimulus.


> HEALTHCARE TOURISM
Government to allocate RM25mil to strengthen Malaysia’s position as the preferred destination for health tourism in Asean for oncology, cardiology and fertility treatment.

The likely beneficiaries are private hospital operators: KPJ Healthcare Bhd, IHH HEALTHCARE BHD, TMC LIFE SCIENCES BHD and Sunway Bhd


> UPGRADING OF MEDICAL EQUIPMENT

The government to spend RM227mil on this.

There is also an initiative to encourage local medical equipment producers to supply to public clinics and hospitals.

Among the existing suppliers and manufacturers are BCM Alliance Bhd, Supercomnet Technologies Bhd, DUFU TECHNOLOGY CORP BHD and UWC Bhd.


> IN-VITRO FERTILISATION (IVF) PROCEDURE
The Employees Provident Fund (EPF) will introduce a new category of withdrawals, allowing for fertility treatments like IVF procedure. The leading healthcare provider in this area is TMC Life Sciences Bhd.


> CABINET APPROVED THE TAKEOVER OF FOUR HIGHWAYS IN KLANG VALLEY
The shareholders of the highways are Gamuda Bhd, Litrak Bhd and KPS Bhd.


> LOWERED THRESHOLD ON HIGH RISE PROPERTY PRICES IN URBAN AREAS FOR FOREIGN OWNERSHIP FROM RM1 MILLION TO RM600,000 IN 2020
Generally it should benefit most property developers.

> STIFFER PENALTIES FOR ILLEGAL GAMBLING
Illegal operators to be fined RM1mil and mandatory jail for 12 months while gamblers will be fined RM100,000 and face custodial sentence of six months.

Also, the government is reducing the number of special draws by the number forecast operators (NFO). Still, the stiffer penalties should mitigate this for Magnum Bhd and BERJAYA SPORTS TOTO BHD which are bound to draw more betters.


> BANDAR MALAYSIA PROJECT
The government is to proceed with the development of the mammoth property development project. It ends uncertainties on the project that was awarded to a joint venture of Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp.

IWH is controlled by Tan Sri Lim Kang Hoo, who is a major shareholder of Iskandar Waterfront City Bhd and Ekovest Bhd


> CENTRALISED PROCUREMENT OF MEDICINE FOR MINISTRY OF HEALTH, MINISTRY OF DEFENCE AND UNIVERSITY HOSPITALS
The centralised tender system is expected to see keen competition among players. Among the companies in pharmaceutical products are Pharmaniaga Bhd, CCM Duopharma Biotech Bhd, HOVID BHD, Y.S.P Southeast Asia Bhd and KOTRA INDUSTRIES BHD


> RM4.85BIL FOR MAINTENANCE OF STATE ROADS
Leading road care maintenance companies are PROTASCO BHD and UEM EDGENTA BHD


Source: The Star

https://www.thestar.com.my/business/bus ... edoE0VU.99
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Re: Malaysia - Market Direction & Strategy

Postby winston » Mon Oct 14, 2019 9:00 am

Thematic: Automation-related stocks
Budget 2020 tax incentives for E&E industry

Trading Catalyst

Under Budget 2020, tax incentives will be provided to promote high-value added activities in the E&E industry to transition into 5G digital economies and IR4.0.

Hence we anticipate more companies to embrace for automation, potentially resulting in higher demand for automation-related services companies.

Under this space, lookout for stocks related to automation such as PENTA, VITROX, ISTONE, GREATEC as we believe their services may be in interest moving forward.

Technical view
ISTONE - Support: RM0.165-0.17 Resistance: 0.225-0.235
GREATEC - Support: RM1.65-1.70 Resistance: RM1.90-2.00

Source: Bloomberg, HLIB
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Re: Malaysia - Market Direction & Strategy

Postby winston » Tue Oct 15, 2019 8:52 am

Key revelations at Budget 2020 Forum

CGS-CIMB co-hosted the Budget 2020 forum with keynote address by FM.
Budget 2020 offers short-term stimulus and future structural transformation.
Maintain our view that Budget 2020 is medium-term positive for earnings.

https://cgs-cimb-insticrm-services.hero ... 7B102BF210
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Re: Malaysia - Market Direction & Strategy

Postby winston » Thu Oct 17, 2019 9:55 am

4Q19 – Retail Strategy
Budget 2020 stimuli to drive 4Q interest

With the returned of slight optimism following the mini-trade deal, coupled with the less austerity sounding Budget 2020 (a change of tone from Budget 2019), we think local equity market may gain attractiveness moving forward. Thus, we are picking sectors/ stocks such as
(i) technology (amid E&E and automation incentives) – ISTONE, KESM,
(ii) power-related (on the back of green tax allowances and rural electrification) – CYPARK, PESTECH,
(iii) construction (due to improved development expenditure) - OKA, KIMLUN, and
(iv) tourism (VMY2020) – TUNEPRO

Source: HLIB
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Re: Malaysia - Market Direction & Strategy

Postby winston » Mon Dec 02, 2019 7:03 am

Steer clear of Malaysia, Asia’s most politicized stock market, investors advised

Jefferies is maintaining its underweight position after first downgrading the nation following last year’s vote.

At the time, the reason for the downgrade was “concern that the return of Mahathir would lead to a policy-driven disruption of the positive trend which had been driving the Malaysian economy: that was mainland Chinese investment,” Christopher Wood, Jefferies’s global head of equity strategy, wrote in a November 28 note.

“This is essentially what has since happened.”


First, Malaysia has seen seven straight quarters of profit downgrades, with the 2019 earnings-per-share consensus at MSCI Malaysia Index companies down by 21 percent since April 2018.

Second, housing starts have fallen and home prices have weakened, coinciding with the slowdown in Chinese investment.

On the bright side, a general election doesn’t need to be held until 2023.



Source: The Standard

http://www.thestandard.com.hk/breaking- ... 1129&sid=2
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