Highlights

Public Watchlist: Kenanga’s 1Q20 Investment Strategy

Malaysian equities are set for a better year in 2020 with the resumption of earnings growth after a 2-year hiatus thanks firstly, to subsiding external risks; secondly, to recovering commodity prices; thirdly, to the anticipated revival of mega infrastructure projects and finally, to the positive impact of trade diversion on investments and exports.

The recently concluded 3QCY19 corporate results point to the arrest of earnings decline with a turnaround in subsequent quarters starting to show. Having fallen 5% since the start of the year, the valuation for the FBMKLCI looks appealing now trading as it is on a 12-month forward PE of 15.7x which is below both the 5-year and 7-year averages. With forward dividends looking intact, its dividend yield of 3.8% now exceeds the 10-year MGS yield of 3.4% - an occurrence last observed 6 years ago. Our end-2020 bottom-up target level for the FBKLCI is 1,712, which happens to coincide with our top-down target derived by applying at 15.9x PE on 2021 EPS.

Overweight cyclicals (technology and plantation) and stay with the banks. Our top picks for 1QCY20 are AIRPORT (OP; TP: RM9.90), BAUTO (OP, TP: RM2.65), CIMB (OP; TP: RM6.45), GAMUDA (MP, TP: RM3.90), GENP (OP, TP: RM12.10), KLK (OP; TP: RM32.90), MAYBANK (OP; TP: RM9.70), MPI (OP; TP: RM14.00), PADINI (OP, TP: RM4.00) and PESTECH (OP; TP: RM1.75).

https://klse.i3investor.com/blogs/kenangaresearch/2020-01-02-story-h1482003970-1Q20_Investment_Strategy_Ratcheting_Up_Returns_in_2020.jsp

 Auto Refresh Refresh option help  
Last updated:   
Stock Name Ref Date Ref Price Price Diff Last Range Open Change Volume Note
AIRPORT 02-Jan-2020 7.61 5.58
BAUTO 02-Jan-2020 2.09 1.45
CIMB 02-Jan-2020 5.18 4.11
GAMUDA 02-Jan-2020 3.90 3.57
GENP 02-Jan-2020 10.58 8.82
KLK 02-Jan-2020 25.30 22.24
MAYBANK 02-Jan-2020 8.65 8.25
MPI 02-Jan-2020 11.44 39.00
PADINI 02-Jan-2020 3.24 2.88
PESTECH 02-Jan-2020 1.33 1.13


  syedqayyum94 likes this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View Trading Signals and run Live Backtest
MQ Affiliate
Earn rewards with MQ Affiliate Program
 

575  350  587 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 FOCUS 0.095+0.005 
 TAWIN-OR 0.075-0.03 
 VIZIONE 0.23-0.015 
 UCREST 0.345-0.005 
 TANCO 0.11+0.01 
 JAKS 0.645+0.03 
 MINHO-WC 0.09-0.015 
 TAWIN 0.155-0.01 
 CAREPLS 2.41+0.18 
 HIAPTEK-WB 0.12+0.01 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. What pushes the stock price up or down? Koon Yew Yin Koon Yew Yin's Blog
2. From Permafrost to Precipitation, Calvin Tan Research (At what stage is Glove, Steel/Aluminium & Palm Oil Stocks currently? THE INVESTMENT APPROACH OF CALVIN TAN
3. Malaysia's new Covid-19 cases jump to 4,498, highest in three months - Koon Yew Yin Koon Yew Yin's Blog
4. JAKS: What should I response? Any advice! Sslee blog
5. PALM OIL - The Investment That Separates Billionaires from Millionaires (Reposted article) Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
6. TAWIN: Enters into EV Market, where EV Copper Demand may potentially rise by 9-FOLD by 2027 gemfinding
7. 5大仙股,是值得“便宜”买入?还是要小心踩雷?【百股经#81】 - 百股經 Good Articles to Share
8. How to prevent Cancer? Koon Yew Yin Koon Yew Yin's Blog
PARTNERS & BROKERS