Stocks on a radar

IT IS protected to contend that markets will step in uncharted waters with Malaysia carrying a change in supervision for a initial time in history,

The ubiquitous accord is that a stock, banking and bond markets might knowledge sensitivity over a brief tenure before stabilising, helped by a new government, Pakatan Harapan’s skeleton for reforms.

So far, there have been some denote from a new supervision that there will be a concentration on a handful of areas that embody finance, preparation and technology.

Strategists are also awaiting a examination of supervision spending where mega projects such as a East Coast Rail Link (ECRL) and a KL-Singapore high-speed rail (HSR) are concerned.

“There might be questions and process doubt in a nearby tenure following a choosing results,” Standard Chartered Global Research says.

It done 10 promises for a initial 100 days of a administration and we might see doubt associated to some of them, that embody revisiting mega projects, it adds.


Below is a handful of binds expected to be in concentration as a outcome of a ubiquitous choosing (GE) outcome.

Opcom Holdings Bhd

Prime Minister Tun Dr Mahathir Mohamad’s son, Datuk Seri Mukhriz Mahathir, is one of a categorical shareholders of this association while his hermit Tan Sri Mokhzani Mahathir is a authority and executive executive during a firm.

Opcom is a association concerned in a make of fiber ocular cables and cable-related products.

Its business has given 5 years ago diversified and it is now in engineering services, engineered cosmetic materials and thixotropic gels as well.

In a past, Opcom was seen as mostly out of foster with the-then statute supervision and had during one indicate been raided by a Inland Revenue Board (IRB).

The batch bounced behind on to investors’ radar recently, attracting most courtesy in a week heading to a GE where a shares rallied roughly 50% to 60.5 sen.

For a latest entertain finished Dec 31, 2017, Opcom reported a net distinction of RM586,000 on a income of RM27.5mil.

Opcom pronounced a final financial year was “very challenging” for a internal fiber ocular cables courtesy due to continued diseased courtesy cost levels, a strengthening of a US dollar and a most some-more rival marketplace environment.

Its offered margins continue to be underneath vigour due to foe from alien cables, it adds.

MyEG Services Bhd

This association is obvious for a domestic connectors with a prior statute party.

It started out as a supervision concessionaire that provides services including highway taxation renewal, unfamiliar workman assent renewal, summons checking and zakat payments, though has given developed into a provider of blurb services such as sinecure squeeze and word services as well.

Its batch has been a heavenly of a marketplace for many years now, with a marketplace capitalisation carrying grown from only over RM100mil given a inventory in 2007 to billions now.

At a stream cost of RM2.58, a MyEG batch is valued during over 30 times a brazen earnings.

In terms of earnings, a association done a net distinction of RM59mil in a latest entertain compared with a net distinction of RM47.6mil in a same duration a year ago.

Over a final 5 years to 2017, a association has purebred a compounded annual expansion rate of some-more than 45% profit-wise, and tighten to 37% on a revenue.

Via a latest annual report, a supervision told shareholders that a opinion for a association “remains positive” over a longer term.

MyEG’s singular largest shareholder is a handling executive Wong Thean Soon who has a 7.73% approach interest and an surreptitious interest of 31.79%.

AMMB Holdings Bhd (AmBank)

AmBank generated most courtesy behind in 2015, with hum relating to million-ringgit fines that were imposed on a bank with honour to non-compliance of certain regulations in propinquity to scandal-ridden 1Malaysia Development Bhd (1MDB).

While it has paid a fines and has pronounced some time ago that it does not design any some-more fallout on exchange undertaken by 1MDB, a emanate could aspect again if there are uninformed investigations into 1MDB.

Notably, AmBank was concerned in 1MDB’s initial bond distribution of RM5bil in 2009.

In 2016, a Ministry of Finance (MoF) pronounced transformation had been taken opposite dual AmBank employees for covering adult exchange involving money-laundering activities related to 1MDB.

Fundamentally, analysts contend AmBank is on lane to achieving a Top Four or T4 strategy, where it wants to spin among a country’s top-four banking groups by 2020. It done a net distinction of RM219mil on a income of RM2.16bil in a latest entertain finished Dec 31, 2017 and has seen many changes during a tip supervision that is now helmed by Datuk Sulaiman Tahir.

Malayan Banking Bhd and CIMB Group Holdings Bhd

Some unfamiliar analysts have pronounced that a dual tip banks in a nation might feel a impact of a examination of mega projects by a new government, as it could lead to probable reduced distribution of bonds.

Because of their perfect size, Maybank and CIMB are a largest issuers of binds and are partial of a incomparable ubiquitous consortium to safeguard vast issues.

Within a banking industry, there are also flourishing concerns that a arriving financial formula of lenders in ubiquitous could be impacted by a new accounting standard, MFRS 9, that requires banks to set aside some-more supplies for puzzled debts.

Meanwhile, an additional daze for CIMB is that it is headed by Datuk Seri Nazir Razak, who is a hermit of former Prime Minister Datuk Seri Najib Tun Razak.

Thriven Global Bhd

Thriven Global Bhd is a association related to Datuk Fakhri Yassin Mahiaddin, who is a son of Tan Sri Muhyiddin Yassin, a former emissary primary apportion and stream boss of Parti Pribumi Bersatu Malaysia, one of a parties that make adult a statute bloc Pakatan Harapan.

Thriven is concerned in skill growth with projects opposite Peninsular Malaysia.

Its flagship plan is Lumi Tropicana, that comprises blurb and use apartments in Petaling Jaya.

The association was formerly famous as Mulpha Land Bhd and altered a name to Thriven following a entrance of new vital shareholders about 3 years ago.

These people embody Ghazie Yeoh Abdullah, who is Mulpha Land’s organisation handling director, Datuk Low Keng Siong and Fakhri.

Since a entrance of these individuals, Thriven has undergone a mutation of sorts and now has a cleaner change piece as compared to being debt-laden before.

For a financial year finished Dec 31, 2017 (FY17), it done a tiny net distinction of RM201,000 contra a net detriment of RM10.14mil in a prior year.

Shares in Thriven rallied about 30% in a week heading adult to a ancestral GE.

It sealed during 25 sen on May 8, giving a batch a marketplace value of RM94.2mil.

Another association that is related to Fakhri is Eden Inc Bhd , that is concerned in a food and libation and tourism businesses.

Its shares also rallied, reaching a top so distant this year final week, finale Tuesday during 17 sen.

The association posted a net detriment of RM4.8mil for FY17.

Destini Bhd

Destini, an engineering dilettante association for a aviation, marine, and oil and gas (OG) sectors, is tranquil by Datuk Rozabil Abdul Rahman, who is active in a Umno Youth movement.

It is also 17.3%-owned by a Ministry Of Finance around a unconditionally owned subsidiary, Aroma Teraju.

Rozabil who owns a 24.5% interest in a company, has been instrumental in a company’s turnaround and pierce divided from dependency on supervision aviation maintenance, correct and renovate (MRO) contracts.

He flush in a association – formerly famous as Satang Holdings Bhd – in 2011.

For FY17 finished Dec 31, Destini posted a net distinction of RM30.67mil – an boost of over 4 times from a RM7mil purebred in FY12.

The association now gets some-more than 80% of a income from a sea and aviation sectors.

Two year ago, it diversified into a rail MRO services shred and is now completing a RM62mil pursuit from Keretapi Tanah Melayu Bhd to supply 35 engine trolleys and dual rail highway vehicles by 2019.

Its stream superb sequence book is during RM930mil, that gives it gain prominence for FY18 and FY19.

Shares in Destini final traded during 43 sen, down by some 17% given a commencement of a year.

At this price, a batch is trade during a cost gain of 16.19 times and has a marketplace capitalisation of RM496.7mil.

Alliance Bank (M) Bhd

One of a smallest banking groups by item distance in a country, Alliance has in a past been related to former financial apportion Tun Daim Zainuddin by secretly hold Langkah Bahagia Sdn Bhd.

Langkah Bahagia is a singular largest shareholder in a bank’s prototype Alliance Financial Group with an effective interest of 15.04%.

In Apr 2016, 3 individuals, namely, corporate confidant Seow Lun Hoo, Singapore skill aristocrat Ong Beng Seng and Ong Tiong Sin, who owns Singapore-based private equity organisation RRJ Capital, bought into Langkah Bahagia from Lutfiah Ismail, who was an associate of Daim.

Langkah Bahagia owns 51% of Vertical Theme Sdn Bhd, which, in turn, binds 29.06% of Alliance.

The remaining 49% in Vertical Theme is tranquil by Singapore’s investment arm, Temasek Holdings.

Daim is famous to have good ties with Temasek Holdings, that could explain a credentials of a 3 buyers of a 15.04% retard likely by Lutfiah.

These shareholding changes advise that Alliance Bank could be staid for an MA down a road.

At final look, a batch traded during RM4.12 for a marketplace capitalisation of RM6.37bil.

Its price-to-book is during 0.66 times, while lapse on equity is during 10.5%.

Construction stocks

With Pakatan’s guarantee to examination vital open projects including those financed outward of a growth bill such as a ECRL and a Kuala Lumpur-Singapore HSR project, construction binds will come underneath a spotlight.

Gamuda Bhd , for instance, has endless proposal bearing to a MRT 3 and HSR projects, as good as highway concessions.

Elsewhere, YTL Corp Bhd has also emerged as a vital substitute for rail contracts in Johor by a just-secured RM10bil-RM12bil southern HSR plan smoothness partner (PDP) pursuit and a imminent central endowment of a RM12.4bil Gemas-JB rail double-tracking project.

Malaysian Resources Corp Bhd (MRCB), meanwhile, will also be closely watched for a bearing to HSR and a Eastern Dispersal Link, while construction outfit Protasco Bhd has bearing to supervision highway upkeep and housing projects. Protasco is a association once related to former Finance Minister Tun Daim Zainuddin.

Another construction association related to highway and rail contracts is IJM Corp Bhd .

George Kent Malaysia Bhd has also in new years diversified into a rail engineering business and will be in concentration for a faith on supervision jobs.

At a moment, a association is a PDP for a LRT plan from Bandar Utama to Klang.

Early this year, George Kent collaborated with 4 unfamiliar companies to form a consortium to bid for a HSR project.

Another consortium that it is concerned in, done of Gamuda-MMC-George Kent, is also seen as a clever contender to secure a MRT 3’s Circle Line warden contract.

Among a smaller, mid-cap construction players, Gabungan AQRS Bhd and Ahmad Zaki Resources Bhd will be watched for their bearing to infrastructure projects.

CIMB Research in a news progressing this week remarkable that a construction index is down some-more than 11% year-to-date.

Gamuda has rather bucked a disastrous trend and is adult some 4% given a commencement of a year.

MMC Corp Bhd , Malakoff Bhd DRB-Hicom Bhd

These 3 binds have a common determining shareholder in a form of Tan Sri Syed Mokhtar Albukhary, who is seen as an associate of Dr Mahathir,

MMC Corp has tenure stakes and operations in a shipping, appetite and construction industries.

It is pronounced that a organisation could do some-more to persperate a assets, including a probable spin-off of a ports to residence a debt issue.

As of Sept 30, 2017, MMC Corp had a money raise of RM844mil though a debt amounted to RM9bil, that translates to a net debt-to-equity ratio of 0.79 times.

Malakoff, meanwhile, is a country’s largest eccentric energy writer though a share cost has remained lifeless on a miss of new distinction drivers.

The splendid mark of a 3 is DRB-Hicom, that owns a 49% interest in internal carmaker Proton Holdings Bhd.

Proton is Dr Mahathir’s brainchild and was set adult in a 1980s. It recently got a vital partner in a form of China’s Zhejiang Geely Holding Group Co Ltd, that binds a remaining 51% interest in a automotive firm.

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