leftright-investment

Slate for its debut trading tomorrow (10th July 2013), can AirAsia X follows the footsteps of its sister company AirAsia? What would happen tomorrow pretty much depends on the fair value given by various research houses. AirAsia X is a leading long haul low cost carrier since operating on Nov 2007, primarily in the Asia Pacific region. Currently, it serves 14 destinations acorss Asia, Australia and the Middle East, with 11 A330-300 planes. Investment analysis: Benefits from synergies as part of AirAsia group Strong brand name Operate in the fast growing aviation market in the world Lowest unit cost base in the region Strong ancillary income at RM141/pax and expected to grow further How about the risks? High jet fuel price World crisis i.e. war, terrorism, epidemic outbreak Slowdown in world economy Emergence of other long-haul LCCs Delaying of KLIA2 which may hamper its growth prospects Strengthening of USD against MYR, because 79% of its debt is denominated in USD So, what's the ...

* Note: This is NOT a political post. Instead, we're talking about share market movement based on possible election outcome. Abusive comments are strictly prohibited and will be remove automatically. Local investors have been staying sideline for months ago. Do you started to feel itchy now? Honestly, this is the feeling of mine as an investor, from being active to passive lately. I can't wait to start investing again in share market. However, we shouldn't simply jump in next Monday, right? Let's see the 3 possible election outcome and how market may react accordingly... OUTCOME #1: BN retained power Judging by the strong influx of foreign funds flooding local share market prior to election, this is definitely their expected outcome. If materialize, Monday market generally will rally. However, I expect this kind of rally will be short-lived , and turning downward after that. Why? Simply ask yourself these questions: When is the better time to take profit if not that tim...

Every wonder why we didn't cover the IPO for Tune Ins ? Other than CNY mood, it's because of the unexciting part of this new stock. Why? Please read on... Tune Ins Holdings Sdn Bhd (TIH) operates 2 core businesses. First, it provides online insurance where insurance products are sold as part of the customer’s online booking process with their partners namely AirAsia, Tune Hotels and AirAsia Expedia. TIH also operates a general insurance business, through 83.26% owned subsidiary - TIMB. Why invest in Tune Insurance Holdings? Wide and cost effective distribution channels Provide ease in buying coverage Exclusive partnership with AirAsia Ability to ride on AirAsia’s robust growth Additional revenue and cost synergies from TIMB Robust industry prospects However, some of the above investing reasons had also became the disadvantages of TIH. It's reliant on AirAsia business is too important. TIH's success is very much depends on the success of AirAsia businesses, and because...

By TA Securities, We believe 1H13 will be a choppy period and election concerns could drag down the FBM KLCI by 8% to 10% in the period before market rebounds in the 2H13. The impetus for revival will mainly hinge on the end of election overhang and strong domestic demand. Sustained monetary easing on the back of low inflationary pressure and attempts to reduce budget deficits by cutting subsidies and channeling the savings to productive ventures are positive despite the short-term impact on earnings. Overall, domestic economy will play an integral role in sustaining confidence in domestic equities next year in the absence of any overwhelming micro drivers. Corporate earnings for 9M12 were less robust and we forecast full year earnings growth for the FBM KLCI to be 9.4% only. Chances of a strong revival in the immediate-term are minimal based on external sentiment and dwindling demand in key export markets. Our earnings growth forecast of 8% and 8.4% for CY13 and CY14 is not compelling...

Today, Malaysia achieve its first milestone in Exchange Traded Sukuk, following the launching of RM300million sukuk by DanaInfra Nasional Bhd . This is the first sukuk for retail investors. When we mention about retail investors, which refer to public, are we ready for this kind of new investment? We should better understand first before jumping onto the ship... In short, ETBS refers to Exchanged Traded Bond and Sukuk. Generally, bonds/sukuk have always been seen as an asset class to hedge when markets are bearish and a means to develop a steady income over many years. But in the past, these was only accessible to high net worth and institutional investors. Now, with ETBS, all investors can have access to the bond/sukuk market with ease, via the stock market. What are ETBS ? ETBS are fixed income securities, also known as bonds or sukuk (syariah compliant bond), that are listed and traded on the stock market . ETBS are issued either by companies or governments (the issuer) to raise fun...

No doubt, many investors prefer only invest in dividend-based counters. Malaysia is famous and already been recognized as one of the hottest spot for those looking for high dividend yields counters. But, things may changed. Why? First, how do we calculate dividend yields? It's dividing the one year dividends declared by share price. Normally, yield which is higher than 5% was considered attractive . Just when everyone looking to hide their money from risks, yet aiming for higher returns than putting into fixed deposit (3% p.a), dividend counters seems to be their preferred selection. Should we follow the "professionals"? Yet, many investors just follow the winds (fund managers, analysts, consultants...) to invest based on the past 6 months, 1 year or 2 years track records. Yes. It's proven track records. But, where we are heading to is more important, right? If you read the newspaper which published out-dated yields data , good luck. It's was based on last year d...

Below is the 10 key achievements highlighted by CEO of Pemandu, that demonstrates the positive inroads of the ETP: Projects will be implemented within the 12 focused National Key Economic Areas (NKEA) and also implement 51 Strategic Reform Initiatives (SRI) to ensure competitiveness will flourish. Whilst Malaysia's GNI per capita was only US$6,700 in 2009, it grew dramatically by 45% in 2011. (Target is US$15,000 by 2020) GDP grew by 5.3% year-to-date. This is significant, considering Singapore's growth of only 1.3% while neighboring countries recorded the following GDP growth: Thailand 3.0% South Korea 1.6% Taiwan 1.0% Hong Kong 1.3% Economy continues to grow to reach new GDP and GNI records in 2011, with Government achieved its highest revenue in history with RM185 billion in 2011, allowing the Government to implement many programmes, including those under GTP such as BRIM1 and BRIM2. Private investment continues to achieve robust growth. As of Sept 2012, private inv...

The Return of a Pay TV Giant!!! Astro Malaysia Holdings (AMH) is poised to list on Bursa's Main Market on 19th Oct with a market cap of RM15.6bil . The largest pay-TV operator in Malaysia has a de factor monopoly, commanding a 99% market share. Are you excited, again? Background AMH is the leading media entertainment group in Malaysia with 3,100,000 customers and one of the largest in South East Asia. It is primarily engaged in the creation, aggregation and distribution of content over multiple delivery platforms including TV, radio, publications and digital media within Malaysia. What's the different from the then delisted entity? Recall that Astro All Asia Networks (AAAN) was the one taken private in 2010 by its single largest shareholder Astro Holdisngs SB. Meanwhile, AMH is effectively the domestic media business arm of previously-listed AAAN. How good was Astro Malaysia Holdings? A monopoly in the pay TV segment with 99% market share A capital intensive industry, creates ...

IGB REIT comprises of Mid Valley Megamall (retail; 1.72m sf NLA) and the Gardens Mall (retail; 0.82sf NLA) with a total appraised value of RM4.6b . Currently, Mid Valley Megamall is 99.8% occupied and the Gardens Mall is 99.7% occupied. Based on the IPO  price of RM1.25, IGB REIT’s market capitalization would be RM4.3bn, making  it the largest pure retail M-REIT .  Following closely behind IGB REIT in terms of market capitalization size is Pavilion REIT (RM4.08b), Sunway  REIT (RM4.02b) and CMMT (RM3.02b). What are the key selling points for IGB REIT? Prime asset with strategic location, huge catchment area and well connected  transportation networks. Diverse based of tenants to sustain rental income. Low gearing provides ample room for acquisition growth.   Based on IGB REIT’s Pro Forma Statement of Financial position, IGB REIT’s  gearing ratio upon listing will be approximately 25.8% , which is below the  average o...

Recently, Bursa Malaysia launched its Derivatives Local Participants Recruitment Drive to have more derivatives traders, so that a more vibrant and dynamic derivatives market can be seen in Malaysia. Anyway, what is it actually? I guess many of us, either yourself or investors or traders, also doesn't know the exact answer... Again, it's time for Finance Malaysia to do Bursa Malaysia a favor to educate the public. A Local Participant (Locals) is a professional derivatives trader who trades for his/her own account. In essence, a self-employed trader. With the recent easing of entry requirements, those who aspire to be a Local Participant are not required to pass the licensing examination, show the relevant academic qualification and industry experience. What is the benefits of being a Locals ? Locals have grown alongside the Exchange over the years, both in terms of numbers and trading participation in derivatives products. As a proprietary trader, they have unlimited trading...

Gas Malaysia Berhad (GMB) was established to sell, market and distribute natural gas and Liquefied Petroleum Gas (LPG). GMB is also responsible for the construction and operation of the Natural Gas Distribution System (NGDS), which is a system comprising 1,800km of gas pipelines and stations within Peninsular Malaysia owned by GMB. NGDS is connected to the Peninsular Gas Utilisation (PGU), which is the gas transmission pipeline across Peninsular Malaysia owned and operated by PGB. GMB’s core business to sell, market and distribute natural gas to industrial, commercial and residential customers in Peninsular Malaysia via NGDS. In other words, GMB purchases natural gas from PGB and sells to GMB’s own customers at a profit margin. There are currently two players in Peninsular Malaysia’s natural gas distribution industry, comprising GMB and PGB. However, both serve different sets of customers, whereby GMB’s customer base consists of us...

Lackluster global markets. The Malaysian market sputtered in April after hitting a  record close of 1606.63pts early in the month. It then trended downwards together with most global markets, as political uncertainties in Europe sapped the strength of markets worldwide in the first half of the month, while political uncertainties at home dampened the KLCI in the second half of the month. This was indeed as per our expectations. Outlook: Sell in May and Go Away? We investigated the historical index performance over the months of May–Sept and Oct–April for the US and for Malaysia, Jakarta and Hong Kong to try and determine if there was any truth to the old adage. Analysis indicates that over the past 52 years in the US and 22 years in Asia, markets do indeed under-perform more during the months of May–Sept as compared to Oct–April, with the KLCI surprisingly emerging as a high beta market compared to the other three markets. What goes up ...

In tandem with the moderating economic growth trend, corporate earnings remained weak in 4Q 2011 .  Of the 113 reported earnings that we cover, 55 of the results (48.7% of the total) were within our  expectations, 33 below projections (29.2% of the total) and 25 above forecasts (22.1%) (see Table 1). Against  the consensus numbers, 44.2% of the reported earnings were within expectations, 38.1% below and 17.7%  above projections (see Table 2). Sequentially, net EPS for the FBM KLCI stocks under our coverage  weakened back to +1.7% qoq and +2.8% yoy in the 4Q, from +8.9% qoq and +12.4% yoy in the  previous quarter (see Chart 1). However, the downgrade to upgrade ratio has improved significantly to 1.07 times, from 1.65 times in  the previous quarter. Overall, 2011 has been a year where Corporate Malaysia suffered from slowing sales and  falling utilisation rates. This, coupled with the trend of higher costs, resulted in falling margins for many...