Friday, May 20, 2011

KENANGA reiterate BUY on KIAN JOO with TP RM2.54

From Kenanga Research:

Kian Joo 1Q11 net profit was above our and consensus estimates. YoY, 1Q11 revenue grew 17.8% to
RM255.3m while net profit increased 40.3% to RM30.7m, on the back of higher sales, particularly seen
in corrugated carton division. QoQ 1Q11 saw improved margins. We maintain our Target Price of RM2.54
based on unchanged FY11E EPS of 25.4 sen over historical average PE band of 10x. We continue to like
Kian Joo for its decent earnings growth and dividend yields of 6% and hence, we reiterate our BUY rating on Kian Joo.

Wednesday, May 11, 2011

Kenanga Initiate Coverage on KIANJOO with TP of RM2.54

Kian Joo is the leading can manufacturing company in Malaysia. The company has a history of near to a century in the country; currently manufactures about 60% of local can market and has strong earnings track records. Kian Joo proposed bonus issue and rights of warrant recently. We believe the company’s decent dividend yield and strong fundamentals will attract long term investors given its strong track record. We are initiating coverage on Kian Joo with a BUY recommendation with a target price of RM2.54.

1) The business of can manufacturing is a stable one as it banks on beverage sector. As a market leader in can manufacturing, the demand should be resilient.
2) Heard of some negative news on this Company about major shareholder tussle. But putting that aside, the historical dividend payment and business growth has been good thus far.
3) FY11E dividend yield of 6.1% seems attractive
4) The TP of RM2.54 provides about 15% upside (from current share price of RM2.21 as of 932am)

Monday, May 9, 2011

Foreign investors has started to sell Bursa shares

Last Friday, foreign investors are net seller of RM130.6m, buyer = local retail RM46.2m and Local Institution RM84.4m. (Source: The Sun)

However, there's an interesting article with title "Foreign funds buy RM3.8b stocks in two weeks" in Business Times. My first impression is "Why they look at 2 weeks instead of 1 week?"

Anyway... you can see it here

My view:
Start to be bearish, should look at day to day change instead of 2 weeks. At least, have to look at weekly changes. You can check it at The Sun daily business segment.

Wednesday, May 4, 2011

Foreign investors silently collecting Malaysia shares

Here's some statistics from The Sun on Daily Trading Participation...

Last Friday:
Net Buyer = Foreign (RM122.4m), Net Seller = Local Institutional ( -RM106.1m) and Local Retail (-RM16.3m)

Yesterday (Tuesday):

Net Buyer = Foreign (RM48.1m) and Local Institutional (RM14.7m), Net Seller = Local Retail (-RM62.8m).

My view:

Seems like foreign investors are slowly collecting Malaysia shares. Possibly due to continued low interest in US and money outflow from Japan. No wonder stocks with huge foreign interest e.g. AIRASIA has been moving.

Tuesday, May 3, 2011

KAWAN Food: Free 1 Warrant For Every 2 Shares

Exercise Price: RM1.40
Period: 5 years from Warrant issue date
Total warrants to be issued: 60m

Short comment:
Should see some short term trading opportunity, but fundamentally nothing much changed except the stock's liquidity may increase.