What if I miss out MSM? Then look at BERNAS

MSM gained RM1.15 (about 33%) to RM4.65 as of 3pm. Is there any upside? I think not that much. But what if I have miss out on MSM?

Look at BERNAS instead. Kenanga wrote about BERNAS yesterday. Here's the first paragraph:

Padiberas Nasional Berhad (BERNAS) is primarily involved in procurement, importing, buying, processing and selling of rice, rice by-products and paddy.

Recently, BERNAS has received the renewed mandate from Malaysian Government to manage Malaysia’s rice supplies for the next 10 years.

Net profit improved in both FY10 (+5% YoY) and 1Q11 (+36% YoY) as average cost of rice declined.

Net dividend totaled 19.0 sen in FY10 (yield 5.6%).

We view BERNAS as a cheap proxy to consumer staples sector in Malaysia as it trades at 7.8x PER of FY10 (25% below MSM IPO’s PER of 10.2x).

We recommend a fair value of RM3.85 (based on 10.2x historical PER to FY10), implying potential upside of 33%.

Short comment:

Hmm... RM3.85, still plenty of upside. May consider this if you have missed out MSM