10 Stocks to Watch based on 1Q17 Report Card

Let us know which stocks you want us to study and present for you!

As you know, it has been Stockify practice to shortlist 10 Stocks to Watch and few stocks to Review in every quarter after the report card season. As much as we want to, it is quite impossible for us to present all of the stocks in the list. Therefore, we would like to INVITE our readers to VOTE on the poll we created 

https://fans.vote/vote/ACpA90THOHo/stockify/which-stock-do-you-want-us-to-present

to let us know which stocks you would like us to study in this quarter. We would present the most voted few stocks.

To watch:


1) KAREX
Some may not know that, the world largest condom manufacturer is a Malaysian company, called KAREX Berhad. KAREX produced more than 5 billion pieces of condom in 2016, roughly 20% of the world market, and export to more than 120 countries. KAREX helps brands like Durex, Lifestyle and Ansell to manufacture their condoms. Condom industry is an industry with high barrier of entry. That’s why we have so many listed rubber glove makers in Malaysia but only one listed condom maker. That’s also why KAREX could achieve a double digit high profit margin even being a manufacturer (KAREX own brands contribute to a relative small portion to its revenue). Good business always come with a premium price. However, after seeing its net profit drop for 5 Quarters consecutively, investors started to dump the KAREX share in big volume, causing its share price drop to RM 1.80, from historical high price of RM 3.10 (after bonus issue adjustment). The question is, is it time to “buy cheap” yet?

2) AJIYA

AJIYA was started as a metal rollforming manufacturer in 1990. Today, it is a manufacturer and provider of metal roofing and safety glass products that cater to a wide variety of users from industrial commercial buildings to the common residential houses. As far as we know, the management has a good track record in managing and transforming the company, from its history of venturing into safety glass business, transferring from 2nd Board to Main Board, and maintaining a good balance sheet. Despite that, its business nature of low profit margin and highly susceptible to external factors doesn’t make it appealing to us. However, the company recent involvement in Integrated Building System (IBS) could provide what it lacks to be a good investment, result in a possible re-rating in share price. We decided to examine further.

3) HEXZA

HEXZA Corporation Bhd, a local chemical manufacturer incorporated since 1969 has just posted a surprising loss on their latest quarterly report, mainly attributed to steep hike in their cost of raw materials for resin products and hike of alcohol excise duty for their ethanol division. Despite of this, the company has been in net cash position for some time and also rewarding their shareholders with consistent dividends over the years. Will the recent sell off provide an opportunity for fellow investors?

4) YSPSAH

Yung Shin Pharmaceutical Southeast Asia Holdings (YSPSAH) as its name suggested, mainly operates in trading and manufacturing of pharmaceutical products. The company has expanded its footprint in Singapore, Malaysia, Vietnam, Cambodia, Myanmar, Philippines, Indonesia and Thailand. As a player in a heavily regulated pharmaceutical industry, the company has shown solid balance sheet and strong cash flow. Perhaps, it deserves a deeper study for a better understanding of its business.

5) UMSNGB

UMS-Neiken Group Bhd (UMSNGB), an OEM and OBM that involves in designing, manufacturing, and trading of electrical wiring accessories & electrical products. Their OBM products are branded under UMS and Neiken. Their products have been sold in Malaysia and 26 other countries around the globe. The company has not attracted much spotlight, and us in Stockify are happy to conduct a deeper research for it.

6) OLDTOWN

Oldtown Berhad produces and sells white coffee products to the households and food service industries. The Company also provides milk, tea and roasted coffee powder. Despite the “low” valuation, their strong fundamentals definitely caught our eyes.

7) KESM

KESM Industries Bhd. is an investment holding company, which engages in the provision of semiconductor burn-in services. It offers electrical testing of semiconductors and reel assembly. Last year, the company was listed as a “no-brainer investment” by KC Chong mainly because of its strong cash flow. However, is KESM still a no-brainer investment at present day?

Did you know, KESM was trading at around RM2.50 back in 2015?

8) JOHOTIN

Johore Tin Bhd operates through the following segments: Investment Holding, Tin Manufacturing, and Food and Beverage. The Investment Holding segment focuses on investment holding activity and provision of management services. The Tin Manufacturing segment manufactures various tins, cans, and other containers. The Food and Beverage segment produces and sells milk and other related dairy products. The Company’s increasing revenues and profits have caught our attention. Also, it was one of the stocks that past ColdEye 5 yardsticks in 2016.

9) KMLOONG

Kim Loong Resources Berhad is an investment holding company. The Company is engaged in the cultivation of oil palm. The Company operates through two segments: Plantation and Milling. The Plantation segment is engaged in the cultivation of oil palm. The Milling segment is engaged in the processing and marketing of oil palm products. We never look into plantation stocks, maybe we should start from KMLOONG, a plantation company with good fundamentals. 

10) HAI LECK HOLDINGS

To be honest, we don’t know much about the business of the company yet. Established in 1975, listed in Singapore, Hai Leck Holdings is one of the leader in Singapore which provides engineering, procurement and construction (EPC) services to the oil & gas, petrochemical, pharmaceutical and utilities industries. By flipping through the financial reports, we are impressed with its strong cash flow, impressive earnings ability and at the same time trading at a cheap valuation. We think it will worth the effort to study further.

To review:

1) RGB

We first presented RGB in this blog after the announcement of its 3QFY16 Financial Results. Two quarters have passed since, and we think it is time to review the company, especially after seeing the price of the stock went historically high to RM 0.36 after our coverage, and dropped back to current level of RM 0.285.


Check out our previous posts on RGB

RGB Business Analysis
RGB Financial Analysis

2) IQGROUP

We first presented IQGROUP after the announcement of its 2QFY16 Financial Results when it was trading at RM 2.78. Two financial quarters later, we continue to see good business performance in IQGROUP. We decide to review IQGROUP to assess its valuation especially after the stellar performance in its share price (close to 50% gain).

Check out our previous posts on IQGROUP

IQGROUP Business Analysis

IQGROUP Financial Analysis

3) HOMERIZ

We first presented HOMERIZ after the announcement of its 1QFY16 result. One financial quarter later, especially with recent strengthening of USD, we saw HOMERIZ price drop to RM 0.92, from the price of RM 0.98 when we first covered. If its fundamentals hold, it is definitely an opportunity to buy HOMERIZ at greater margin of safety.

Check out our previous posts on HOMERIZ

HOMERIZ Business Analysis

HOMERIZ Financial Analysis

4) HOCK LIAN SENG

Being the first SGX listed company posted (after announcement of 4QFY16) in this blog, we see a modest return in the stock price after a financial quarter (including the high special dividend of SGD 0.125). After the distribution of Special Dividend, some may see the stock lack of catalyst. We would like to review the company.

Check out our previous posts on HOCK LIAN SENG

HOCK LIAN SENG Business Analysis

HOCK LIAN SENG Financial Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *