Malaysia - Market Strategy

[winston]

Malaysia Strategy
It’s darkest before dawn

Closer to 4Q23, we expect two rerating catalysts to emerge for the Malaysian market, causing a structural shift in liquidity flows and domestic sentiment.

With the right triggers in place, upside to the KLCI and FBM100 could be significant, in our opinion, underscored by their multi-year low valuations.

Our earnings gap analysis shows that the KLCI could reach 1,610 pts by year-end, and 1,800 pts by end-2024.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 353C20E046

[winston]

Start accumulating shares, especially those offshore champions

1. Gamuda
2. Yinson
3. Press Metal
4. Capital A
5. Mega First

Source: NST

https://www.nst.com.my/amp/business/202 ... maybank-ib

[winston]

STRATEGY – MALAYSIA
Alpha Picks: Moderately Re-energised in July

Our Alpha Picks beat the FBMKLCI (+2.2% vs -0.8%) in June, and we foresee compelling
conditions for our July picks to continue to outperform.

July’s picks: British American Tobacco (BAT), Malaysia Airports Holdings (MAHB), Mr DIY Group, My EG Services (MYEG), NationGate Holdings (NationGate) and Yinson Holdings (Yinson).

We have added NationGate and removed Bumi Armada (SELL).

Source: UOBKH

https://research.uobkayhian.com/content ... 5c8c13d3d4

[winston]

STRATEGY – MALAYSIA
2H23 Strategy – Looking To Regain Some Mojo

We advocate a progressively risk-on strategy in 2H23, factoring in an easing political risk premium, a peakish US interest rate cycle and a recovery in 2Q23 earnings.

Capitalise on events unfolding, such as trade diversion from the US-China trade war, cyclical recovery of the semiconductor sector, the unfolding of El Nino, blockchain development in Malaysia, and tourism (en masse return of Chinese tourists), and in the longer term, Johor’s vibrancy.

We maintain our end-23 FBMKLCI target of 1,520.

Our top picks are Greatech Technology (Greatech), IOI Corporation (IOIC), Malaysia Airports (MAHB), MrDIY, My EG Services (MYEG), NationGate Holdings (NationGate), and Yinson Holdings (Yinson). MrDIY and MYEG are expected to deliver significantly stronger qoq growth in 2Q23, alongside the gaming stocks, VS Industry, BAT.

Source: UOBKH

https://research.uobkayhian.com/content ... a17db6e426

[winston]

Malaysia Strategy
It’s all about expectations

Although sometimes overlooked, key drivers of share prices are “expectations” and “changes in expectations”, in our view.

While the technology sector offers exposure to exciting structural themes, our analysis shows that expectations built into several tech stocks are high.

In contrast, expectations for the property and construction sectors appear low despite better earnings delivery and a relatively robust domestic economy.

We think tactical shifts in weightings from external to domestic make sense and could offer a better risk-reward trade-off at current levels.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2137C870D4

[winston]

PublicInvest keeps 'overweight' call on five sectors in 2H, 'underweight' on gloves

By Justin Lim

Assigned "overweight" ratings to the technology, consumer, gaming, construction and healthcare sectors, while the glove sector received an "underweight" rating.

Inari Ametron Bhd is PublicInvest's top pick for the tech sector.

PublicInvest’s preferred pick for the consumer sector is CCK Consolidated Holdings Bhd. CCK’s business comprise four segments, namely retail, poultry, prawn and food services,

The top picks for the construction sector are Gamuda Bhd and IJM Corp Bhd, due to their versatility in not being limited to Peninsular Malaysia but also present in Sabah and Sarawak, with low net gearing.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/675807

[winston]

2Q23 Results Season Winners

The 2Q23 reporting season should deliver a noticeable host of earnings winners, in part
due to a meaningful rebound from the unusually disappointing 1Q23 which prompted a
5% downgrade in our 2023 earnings forecast for FBMKLCI.

We expect >25% of our coverage universe to deliver appreciably stronger earnings qoq in 2Q23.

We foresee significant upside for the key 2Q23 earnings winners, particularly for the gaming stocks, Alliance Bank, MrDIY, MYEG, VS Industry and Yinson.

Source: UOBKH

https://research.uobkayhian.com/content ... 21f9089ff0

[winston]

Foreigners Go on $2 Billion Buying Spree in Malaysia for Carry

by Matthew Burgess and Ishika Mookerjee

They bought a total of about $2 billion of Malaysia’s stocks and bonds.

Source: Bloomberg

https://finance.yahoo.com/news/foreigne ... 01539.html

[behappyalways]

‘Polls results may not be good news for investors, says analyst
https://m.youtube.com/watch?v=qttz6vPLfPs

[winston]

New Industrial Master Plan
(NIMP) 2030

We expect the NIMP’s beneficiaries to be broad-based, including the Automotive, Aerospace, Technology, Petrochemical, Pharmaceutical, Plantation and Property sectors.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/333538.pdf