Value Investing Series : Malaysia

Last week, I did a quick blog on Value Investing Series (Singapore). Now, I will do a quick scan on Malaysian-listed companies based on the following criteria:

• Date of extraction: 27 February 2021
• Minimum ROE: >15%
• PEG <2x
• Price-to-Sales <3x
• Other criteria – minimum USD market cap, current ratio, revenue growth rate, book value growth, gearing

Quick results from scanning based on the above criteria

Based on the above list, I quite like AJINOMOTO for being a consumer-related stock.

After a downtrend that started early 2018, the stock continues to trade in a range bound (with a mild tilted positive uptrend).

An old research report from Affin pegs a target price of $18.60 on this stock

CAREPLUS – mmmm … I will give it a pass since it is a glove stock. Not too sure on the impact from global vaccination programme on glove stocks. I will consider glove stocks on a longer term basis, may be just not the right time yet. Anticipating some possible near term correction for glove stocks.

GDB – a construction player, headwinds are expected in this sector. Just reported latest Q4 results – improve in revenue & earnings. Orderbook is relatively OK

After earnings announcement, the stock trades in range bound (with negative bias downside). May consider a position when it reaches its support level of around $0.75.

LIIHEN – export-market driven furniture player. Dependent on USD / recovery in US + global markets. Personal preference – somehow not so keen on furniture stocks.

MAGNI – an OEM apparel maker. Currently holding a position in this. Fundamentals are solid, but may have concentrated customer exposure.

SCIENTEX – packaging and property company. Packaging links to consumer-driven factors. It undertook a share split and currently trades in a range bound.

May consider around $3.0 – 3.30 for possible entry opportunity

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