TODAY

I try not to miss you, but in the end I still do. 😄 LOL

Nil Sé’n Lá – Celtic Woman.

The Irish title of this song is “Nil Sé Ina La”. The English translation is “It’s Not Yet Day”. Celtic Woman is an all-female Irish musical ensemble conceived and created by David Kavanagh, Sharon Browne and David Downes, a former musical director of the Irish stage show Riverdance.

Hong Kong stocks up after week of virus jitters

AFP via MMO (Jan 24) HONG KONG: Hong Kong shares rose slightly in today’s trade as the market stabilised following a week of investor nerves over China’s coronavirus outbreak.

The Hang Seng index was up 0.11 per cent, or 31.33 points, to 27,940.45.

The bourse closed at lunch for the Lunar New Year holiday and trade returns on Wednesday.

Libyan central bank chief says oil blockade must be lifted

REUTERS via MMO (Jan 25) LONDON: A blockade of major Libyan oil ports is damaging the economy and must be quickly resolved, the Tripoli-based central bank governor told Reuters yesterday, adding that Libya could run a budget deficit in 2020 as a result.

“Now oil represents 93-95 per cent of total revenue and covers 70 per cent of total spending. This is a bullet in the head, that will hurt Libya and the Libyan people,” Sadiq al-Kabir said in an interview in London. “We really hope the crisis is resolved as fast as possible because it hurts everyone.”

Libya’s internationally recognised prime minister Fayez al-Serraj has warned of catastrophe if the week-long blockade by eastern-based commander Khalifa Haftar’s forces, which has cut oil output to almost zero, is not lifted.

Previously, oil production was 1.2 million barrels a day.

Kabir said the central bank had not yet agreed on a budget for 2020 with the internationally recognised government, which had proposed a budget deficit of 17.5 billion dinars (US$12.5 billion or RM50.8 billion).

“We rejected that and asked them to trim spending,” he said, adding that a deficit was still possible due to the oil blockade.

In 2019, the Tripoli government had planned to stop posting deficits but was then faced with a campaign of Haftar’s forces, requiring to pay for arms and logistical support of its forces.

Officials did not say whether a deficit was posted last year.

Kabir said authorities had made 23.8 billion dinars in 2019 in fees on hard currency sales which were introduced in 2018 as part of economic reforms. In 2018, fees worth 13.2 billion dinars were collected, he said.

Kabir has been challenged by eastern officials, which have set up their own government and central bank branch selling bonds outside the official financial system to raise funds.

The national debt, exclusively in local currency, was now 50 billion dinars, Kabir said.

Eastern officials complain they do not benefit from oil revenues, accusations rejected by Tripoli officials as the Tripoli-based central bank funds some public salaries and fuel supplies to the east.

Kabir declined to give a figure for foreign reserves but said they had risen slightly in the last two years, when oil production was more stable than in the aftermath of the 2011 revolution.

Since the fall of dictator Muammar Gaddafi’s regime in the 2011 Nato-backed uprising, oil-rich Libya has slid into chaos and has had no proper budget as rival administrations vie for power.

I don’t know about you, but I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021. As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS** price targets, not 1 but 3 analysts that cover the stock; 1) DBS RM1.40. 2) BIMB RM1.50. 3) PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

TODAY

GENTLE REMINDER

Icon Offshore shares, rights classed as designated securities from Jan 28

SUNBIZ (Jan 24) PETALING JAYA: Icon Offshore Bhd shares and ordinary rights with warrants (Icon OR) have been declared “designated securities” by Bursa Securities Bhd, with effect from Jan 28 until further notice.

“The decision to designate the securities of Icon and Icon OR is due to excessive speculation observed in the trading of the securities and has been taken in the interest of ensuring a fair and orderly market,” the market regulator said in a statement.

With the designation, trading in the counters will require payment upfront before buying and a free balance of securities before selling.

In a Bursa filing this afternoon, Icon Offshore said Urusharta Jamaah Sdn Bhd had ceased to be a substantial shareholder after disposing 972,225 shares yesterday.

Urusharta Jamaah is a special-purpose vehicle set up by the government to manage Lembaga Tabung Haji’s underperforming assets.

Bursa Malaysia and its subsidiaries will be closed on Monday, 27 January 2020 in place of the Chinese New Year holiday which falls on Sunday 26 January 2020. Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 28 January 2020.

MY THOUGHTS: As long as the PN17 companies have not been delisted, their listing status still has value. PN17? Well, partly this is an attrition and product life cycle process and partly this is because of the business cycle. You can buy CompCorp/Dhaya Maju Infrastructure (Asia) Sdn Bhd or Brahims/MRI VC Bhd or KHEESAN/MAMEE. Well, KHEESAN is not yet a PN17 company. But the name MAMEE DOUBLE DECKER sound interesting enough to grab KHEESAN shares. It’s just a thought. LOL 😄

Khazanah lodges police report over Malaysia Airlines board papers leak

MMO (Jan 24) KUALA LUMPUR, Jan 24 — Malaysia’s sovereign wealth fund Khazanah Nasional Bhd has lodged a police report yesterday over the leak of its entire board papers on Malaysian Airlines Bhd.

Financial newspaper The Edge reported that the wealth fund’s management were understandably shocked and upset over the leak.

“The sources said this was not a normal leak of information to the media which typically does not involve such detailed information.

“It appears that the entire set of confidential board papers on the various options being considered for the troubled national carrier was given to the news portal which published them in a series of articles earlier this week,” said the report.

Apparently only a small group of people had access to the documents.

The main content of the proposal was the merger of Malaysia Airlines with AirAsia Group Bhd and AirAsia X Bhd.

Khazanah was reportedly worried that the leak containing confidential information will make it difficult for future dealings with third parties as the integrity of its processes is now at stake.

Dear FocusM, all human beings have three lives: public, private, and secret.

One of my favourite songs; LANDING IN LONDON – 3 Doors Down feat Bob Seger. 3 Doors Down is an American rock band from Escatawpa, Mississippi, that formed in 1996. Bob Seger is an American singer, songwriter and musician.

TODAY

If my hubby knew how unproductive I am on Fridays, he wouldn’t want me here either. LOL 😄

RHB lowers rates in line with OPR cut

SUNBIZ (Jan 23) PETALING JAYA: RHB Banking Group has revised its Base Rate (BR) and Base Lending Rate (BLR) downwards by 25 basis points effective Jan 29 2020, in line with the reduction in the Overnight Policy Rate (OPR) by Bank Negara Malaysia.

In a statement, the group said RHB Bank Bhd,, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will reduce its BR to 3.5% from 3.75% per annum, and will also revise the BLR to 6.45% from 6.70% per annum.

In line with the revision, RHB Bank’s fixed deposit rates will also be revised downwards by 25 basis points effective 29 Jan 2020.

Timing of 25 basis points (bps) cut a surprise; remains to be seen if this will spur loan demand

Maybank, Public Bank revise rates following OPR cut

SUNBIZ (Jan 23) PETALING JAYA: Malayan Banking Bhd (Maybank) reduced its base rate (BR) and base lending rate (BLR) by 25 basis points (bps) to 2.75% and 6.4% respectively, effective Jan 24.

In addition, its Islamic BR and base financing rate (BFR) will be reduced by 25 bps to 2.75% from 3% and to 6.4% from 6.65% respectively, it said in a statement yesterday.

Following the revision, Maybank’s deposit rates will also be adjusted downwards by 25 bps in tandem with the rate reduction.

The last revision to Maybank’s BR was on May 17, 2019 when it was adjusted to 3% from 3.25%.

Meanwhile, Public Bank has also reduced its BR, BLR and BFR by 25 bps effective Jan 28.

The bank said the move is in line with the cut in the Overnight Policy Rate of 25 bps by Bank Negara Malaysia on Jan 22.

At the same time, Public Bank’s fixed deposit rates will also be adjusted by 25 bps, effective on the same date.

Rohas (9741) – Immediate support at RM0.585.

I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS (5199) – price targets, by 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021. SO BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

BURSA MALAYSIA TODAY: Half-Day Morning Trading Session on Friday, 24 January 2020. There will be no trading in the afternoon session.

Cerita Kedai Kopi. What makes a cafe a good cafe? Is it a warm and inviting atmosphere? Or is it quality food and coffee? How about free wifi? And perhaps a library of good magazines? Hmm 🥰

TODAY

Today is a Good Day to have a Good Day. Happy Thursday!

JSM & Eric – Jamie Berry feat. Octavia Rose – Lost In The Rhythm

What’s Up Buddy?

RHB Technical Analyzer
23 January 2020
FKLI & FCPO: FKLI: Back Below The 50-Day SMA Line

Maintain long positions while keeping the trailing-stop. The FKLI experienced a sharp intraday negative price reversal as it failed to hold on to its earlier session’s positive tone. At one point, it tested the 1,600-pt immediate resistance mark with a high of 1,600.5 pts, before sliding lower to settle 12.5 pts weaker at 1,578 pts. The negative performance nullified the prior three sessions’ price actions, which showed the index hovering around the 50-day SMA line. Should there be further negative price actions in the coming sessions with a downside breach of the 1,571-pt support level, chances are high that the index’s multi-month countertrend rebound may reach an end. For now, we stick to our positive trading bias.

Trading Stocks: KESM Industries, Revenue Group, KPJ Healthcare, QL Resources, Public Packages & Inari Amertron

I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. As such, my Top Pick HIBISCS (5199). Hibiscus Petroleum Berhad, its still below Recomendation**BUY price targets, not 1 but 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark.

BRENT PRICE JANUARY OF 2020: The price of Brent oil so far this month stand at 66.41$ a barrel, compared with 67.31$ the previous month. Over last twelve months the price has raisen 11.78%. Brent crude is extracted from the North Sea and is also known as London Brent, North Sea Oil, Brent Blend and Brent petroleum. It is a light crude oil, slightly heavier than WTI, and sweet because of its low sulphur content and it is ideal for the refining of diesel fuel, gasoline. Brent oil makes up more than half of the world’s globally traded supply of crude oil. Brent blend crude serves as benchmark price for purchases of oil worldwide. It is traded electronically via the ICE futures exchangesource countryeconomy

I’m bullish on candy and chips market. I like KHEESAN (6203). Mamee-Double Decker is Khee San’s new controlling shareholder. Generally, a majority shareholder has more power than all of the other shareholders combined. Reverse merger/RTO? The Khee San group is principally involved in the manufacturing of candy and wafer products, including its Fruitplus range of chewy candies and Torrone Barley Mint, while Mamee’s portfolio includes MAMEE Monster, Mister Potato Chips and MAMEE Chef.

The Asia Pacific leads the global candy sales followed by North America. The target population for the candy market is primarily children and young population. The growing population in emerging economies has led to the high demand for candies, fuelled by impulsive purchase behaviour of consumers. Developing economies, where per capita candy consumption is very low compared to their western counterparts is slowing increasing. Many countries are witnessing campaigns and media advertisements related to innovative candy products which are directly impacting the sales rate of sugar-based confectionary. Companies are increasingly launching products with innovative flavours such as raw mango, Tamarind, Strawberry etc to woo consumers. – source mordorintelligence

The global instant noodles market reached a value of US$ 42.2 Billion in 2018, registering a CAGR of 6.2% during 2011-2018. The market value is further projected to reach around US$ 57.5 Billion by 2024, growing at a CAGR of 5.2% during 2019-2024. Instant noodles have gained popularity worldwide as they are portable, quick to make and easy to store. source researchandmarkets

Revenue in the Potato Chips segment amounts to US$43,702m in 2020. The market is expected to grow annually by 3.6% (CAGR 2020-2023). In global comparison, most revenue is generated in the United States (US$17,084m in 2020).source statista

Robin Schulz – Sugar (feat. Francesco Yates)

I like PELIKAN (5231). Pelikan International Corp Bhd’s net profit leaped 189% to RM4.89 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM1.69 million in the previous corresponding quarter, despite lower revenue. Pelikan is one of the global major players in Arts and Crafts Tools. The global Arts and Crafts Tools market is valued at USD4290 million in 2020 is expected to reach USD5701.3 million by the end of 2026, growing at a CAGR of 4.1% during 2021-2026.

I like BINACOM (0195). The Global 5G Infrastructure Market was valued at USD 0.56 billion in 2016 and is projected to reach USD 22.93 billion by 2025, growing at a CAGR of 51.01% from 2017 to 2025. BINACOM has become a strong telecommunication networks supporting services partner to MAXIS, U Mobile and HUAWEI. BINACOM, its still below its IPO price of RM0.46. Public Investment Bank: Fair value RM0.54. KENANGA: Target Price RM0.58. Technically, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0 .485 levels.

Let’s Have Another Cup of Kopi Dangdut. Cheers!

TODAY

Happy Wednesday! Love all, trust a few, do wrong to none.

ATTA Global Group Bhd, which saw a suspension of trading at noon on Jan 16, announced today that the group’s executive chairman, Ooi Chieng Sim, was remanded by the police following a raid on the group’s premises for investigation of an offence under the Dangerous Drugs Act 1952.

Scomi Energy Services Bhd’s Practice Note 17 (PN17) status is confirmed, after its waiver application was rejected by Bursa Malaysia. In a statement today, Bursa said Scomi Energy joins its parent company Scomi Group Bhd on the list, and is the 24th company on the bourse to be listed as PN17.

If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. – John Bogle

I’m bullish on oil. As such, my Top Pick HIBISCS (5199). At RM0.995, Hibiscus Petroleum Berhad still below price target, not 1 but 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55.

I like KHEESAN (6203). Mamee-Double Decker is Khee San’s new controlling shareholderGenerally, a majority shareholder has more power than all of the other shareholders combined. Reverse merger/RTO? The Khee San group is principally involved in the manufacturing of candy and wafer products, including its Fruitplus range of chewy candies and Torrone Barley Mint, while Mamee’s portfolio includes MAMEE Monster, Mister Potato Chips and MAMEE Chef.

I like PELIKAN (5231). Pelikan is one of the global major players in Arts and Crafts Tools. The global Arts and Crafts Tools market is valued at USD4290 million in 2020 is expected to reach USD5701.3 million by the end of 2026, growing at a CAGR of 4.1% during 2021-2026.

I like BINACOM (0195). It has become a strong telecommunication networks supporting services partner to MAXIS, U Mobile and HUAWEI. At RM0.37, still below its IPO price of RM0.46. Public Investment Bank: Fair value RM0.54. KENANGA: Target Price RM0.58. Technically, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0.485 levels.

Elton John – Goodbye Yellow Brick Road..

The song’s music was composed by Elton John, while the lyrics were written by Bernie Taupin. In my humble opinion, The Yellow Brick Road is the path to urban values, to wealth and social acceptability.

What’s Up Buddy?

RHB Gentle Reminder:
22 Jan (today)
XALL: Icon Price adjusted from Rm0.04 to Rm0.12 (Share consolidation 50:1 )NB: Can only sell 1/50 of holding/purchase prior to 22/01(R/I 100 : 1 consolidated share @ RM0.105 with 1 warrants : 4 Rts shares subscribed) Adj RM0.04 to RM0.12Rts comm 24/01Rts cease 03/02A R E Payment 10/02 Listing 20/02

The FBMKLCI Index dropped 1.55 points or 0.1%, to close at 1587.33 on Tuesday.

  • The index is taking a short breather the past couple of trading days, moving lower slightly.
  • Nonetheless, upward bias remains supported by key indicators: 1) MACD steadily converges towards the Signal line albeit at a slow rate, 2) RSI & Stochastic turning higher, exiting from oversold territories, now hovering around the mid-point mark.
  • Overall, short-term momentum is still pointing towards the upside. The market as a whole may also get a boost as well the next few days as Chinese New Year is fast approaching.

TODAY

Good Morning! Have a nice Tuesday! Your Friendship is a Blessing in My Life!

China-based sports shoes manufacturer Multi Sports Holdings Ltd will be delisted from Bursa Malaysia next Friday (Jan 31), unless an appeal against the delisting is submitted to Bursa Malaysia on or before Wednesday (Jan 28).

A Malaysian company, Serunai Commerce, has partnered Mumbai-based Atoba Business Networks Private Limited to set up a new trade platform in Hyderabad to promote halal businesses.

In October 2018, Sinead O’Connor converted to Islam, and changed her name to Shuhada’ Davitt. Sinead O’Connor – Oro Se do Bheatha Bhaile 2011

I’m bullish on oil. As such, my Top Pick HIBISCS (5199). At 0.99, Hibiscus Petroleum Berhad still below price target, not 1 but 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. I like KHEESAN (6203) because Mamee-Double Decker is Khee San’s new controlling shareholder. Generally, a majority shareholder has more power than all of the other shareholders combined. Under The Radar: IBHD (4251), PELIKAN (5231), & BINACOM (0195) . These 3 stocks are considered under the radar for investors and potential value stocks.

I know what I have given you…I do not know what you have received.

AIRASIA Group Bhd’s (AAGB) proposed takeover of Malaysia Airlines Bhd (MAB) will include key exclusions which may take the initial cost to Khazanah Nasional Bhd (which owns all of MAB) to over RM8 bil, documents sighted by FocusM show.

What’s Up Buddy?

RHB: Technical Analyzer
21 January 2020
FKLI & FCPO: FKLI: Hovering Around The 50-Day SMA

Maintain long positions. The FKLI failed to hold on to its prior session’s closing above the 50-day SMA line, ending 9 pts weaker to close at 1,587.5 pts. Trading took place between 1,587 pts and 1,598 pts. While the failure to hold above the said SMA line is a negative observation, based on the daily chart, there is still lack of a clear price signal to indicate a price rejection from the said SMA. We still believe the countertrend rebound that started from the low of 1,547.5 pts on 10 Oct would stay in place as long as the immediate support of 1,571 pts is not breached to the downside. Maintain our positive trading bias.

Trading Stocks: Master-Pack Group, Notion VTec, GDB, Pentamaster Corporation, LKL International & FoundPac Group

A very touching song, hallelujah. Even though it has been re-recorded by half the artist in every genre, Allison Crowe voice so expressive and gorgeous. It brought me to tears.

TODAY

MY TOP PICK HIBISCS (5199). At 0.97, Hibiscus Petroleum Berhad still below the price targets of 3 analysts that cover the stock of HIBISCS (5199) ; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. I also like KHEESAN (6203) because of Mamee-Double Decker. UNDER THE RADAR: NAIM (5073) & PELIKAN (5231) & IBHD (4251). These stocks are considered under the radar for investors and potential value stocks.

L-O-V-E” by Natalie Cole (daughter) is a cover of Nat King Cole’s (father) “L-O-V-E”

What’s Up Buddy?

RHB: Technical Analyzer
20 January 2020
FKLI & FCPO: FKLI: Back Above 50-Day SMA

Maintain long positions, as the bulls are pushing the index above 50-day SMA line. The FKLI formed a white candle to close 8.5 pts higher at 1,596.5 pts, back above the 50-day SMA line. The low and high were recorded at 1,591 pts and 1,599 pts. As the index has moved back above the SMA line, this further underlines our bias that the multi-month countertrend rebound that started from the low of 1,547.5 pts on 10 Oct 2019 is still in place. This view will remain as long as the immediate support of 1,571 pts is not breached towards the downside. We maintain our positive trading inclination.

Trading Stocks: OKA Corporation, D&O Green Technologies, V.S. Industry, JAKS Resources, Guan Chong & Greatech Technology.

MY TOP PICK HIBISCS (5199). At 0.97, Hibiscus Petroleum Berhad still below the price targets of 3 analysts that cover the stock of HIBISCS (5199) ; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. I also like KHEESAN (6203) because of Mamee-Double Decker. UNDER THE RADAR: NAIM (5073) & PELIKAN (5231) & IBHD (4251). These stocks are considered under the radar for investors and potential value stocks.

Brothers Osborne – It Ain’t My Fault (Official Video). The song’s music video was directed by Wes Edwards and Ryan Silver and originated as a comedic spoof on the action film Point Break.

HLIB: Traders Brief
Upside bias towards 1600-1613 zones
Dow outlook: In the US, we believe the Dow’s uptrend is fairly intact amid fading US-Iran geopolitical tensions and de-escalation of U.S.-China trade tensions coupled with the Senate approval of a new trade deal between the US and the Mexico and Canada on Thursday. In wake of the ongoing healthy 4Q19 reporting season, we remain optimistic the Dow could advance towards 29500-30000 territory in the next few weeks, with support set around 28500-28700 levels.

KLCI outlook: We opine that KLCI should maintain the upward momentum to test our envisaged 1600-1613 zones amid the bullish Wall St performance. However, further rally beyond 1613 is likely to be capped by the by the long CNY break, expectation of another soft Feb reporting season coupled with the local political noises. Nevertheless, traders could look into construction and technology as well as oil & gas stocks as volumes were building up over the past few trading days.

MY TOP PICK HIBISCS (5199). At 0.97, Hibiscus Petroleum Berhad still below the price targets of 3 analysts that cover the stock of HIBISCS (5199) ; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. I also like KHEESAN (6203) because of Mamee-Double Decker. UNDER THE RADAR: NAIM (5073) & PELIKAN (5231) & IBHD (4251). These stocks are considered under the radar for investors and potential value stocks.

U Mobile ready to pour billions of ringgit into 5G

IAN MCINTYRE -SUNBIZ (Jan 19) LANGKAWI: U Mobile Sdn Bhd is willing to invest billions of ringgit to fully tap into the 5G network spectrum for the next generation of connectivity.

For starters, it has already spent around RM300 million for its future rollouts including for billing packages. Going forward, more investment capital has been set aside for the 5G space.

U Mobile CEO Wong Heang Tuck stressed that 5G is not just about the handsets but the breakthrough services it bring, especially with the wireless streaming which allows for faster, louder and clearer visual or sound. There is also data sharing which can be enabled to be faster.

With a fresh range of services, there is a need to revise the billing packages to make it cost effective and to better serve the consumer needs, he explained.

“We may be 20 years behind other telcos (in terms of experience and infrastructure because U Mobile is the youngest operator) but we are catching up fast, especially on the 5G spectrum,” Wong told a media briefing as U Mobile unveiled five initiatives under the 5G live demonstration use cases here last Saturday.

He expects the 5G handsets to cost less than the average prices of around RM3,000 as the spectrum eases into the Malaysian networks while more handset producers begin to roll out their respective 5G personal devices.

For now, U Mobile has zeroed in on four pillars for 5G use cases by collaborating with two local startups (MEDCOM and DoctorOnCall) as well as with Taiwanese e-sports producer HTC Vive and China’s telco infrastructure giant ZTE Corp.

The four pillars are healthcare, virtual tourism, e-sports and fixed wireless connection.

Wongsaid the initiatives can be commercialised over time with the Multimedia and Communications Commission targeting for the rollouts to begin in the third quarter of this year.

For instance, MEDCOM has unveiled a portable device that allows hospitals to reach out to specialists on their personal handsets for complicated medical cases, resulting in a prognosis being able to be done faster than usual.

Eventually, MEDCOM will also allow doctors here to seek special expertise from foreign specialists.

“It will revolutionise healthcare and it is all done in real time,” said Wong.

The DOCpod booth is another game changer as it allows patients to simply walk into the booth to interact via a video link live with a doctor, who can then prescribe medications for basic ailments such as flu and indigestion. It allows the patients to have their blood pressure, sugar and heartbeat rates tested as well.

Meanwhile, virtual tourism allows tourists to visualise the tourism products of their choosing remotely before physically experiencing it. For virtual reality e-sports, gamers will be able to have better interaction with their games.

Maxis keen to deliver best 5G innovation

BERNAMA via EDGE (Jan 20) LANGKAWI: Maxis Bhd is keen to deliver the best innovation to benefit the people and businesses as soon as the necessary 5G spectrum is made available.

The telecommunication company said, over the last few years, it has been assessing the 5G technology and conducting demo trials in its test lab.

“Maxis has been upgrading its transport network to support the gigabit speeds and at the same time virtualising its core network elements for flexibility and scalability for the capacity demands of this technology,” it said in a statement today.

The telco demonstrated its 5G use case, the virtual reality (VR) experience for science learning in its eKelas programme to Prime Minister Tun Dr Mahathir Mohamad at the Pusat Kawalan Operasi Bersepadu (IOCC) today.

The VR learning experience by Maxis is the only 5G use case in the education vertical being piloted under the 5G Demonstration Projects in Langkawi.

Maxis’ chief executive officer Gokhan Ogut said 5G has great potential to be a catalyst to advance education in Malaysia.

“We are thrilled at the prospect of exploring this opportunity for students in Malaysia through our eKelas programme.

“We want to play a key role in connecting more schools with our digital learning content though our well established Maxis eKelas portal,” he said.

Go for UMOBILE & MAXIS, support partner BINACOM. Why? At RM0.38, still below its IPO price of RM0.46. Public Investment Bank: Fair value for Binacom at RM0.54. Based on technical analysis, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0.485 levels.

In The Air Tonight cover by Northern Kings. “In the Air Tonight” is the debut solo single by the English drummer and singer-songwriter Phil Collins. It’s become arguably Phil’s best known and most loved song ever. Haunting lyrics and incredible drum solo!

TODAY

Good Morning! Joni Mitchell – A Case of You

“A Case of You” is a song by Joni Mitchell, from her 1971 album Blue.

What’s Up Buddy?

AMBANK (Jan 17) STOCK FOCUS OF THE DAY
Salutica: Expecting better quarters ahead BUY

We maintain our BUY recommendation on Salutica with an unchanged fair value of RM0.95/share, pegged to an FY21F PE of 14x. We keep our forecasts unchanged. We have gathered some developments from the group since our previous update. Salutica said the material lead time constraint which was seen in the previous quarter has normalized. Also, higher contribution of its new 3rd generation truly wireless stereo (TWS) headphones to be captured in 2QFY20, leading to expectations of higher revenue.

Despite the launch of Apple’s US$249 AirPods Pro in October 2019, Salutica said that Customer A’s forecasts for its new TWS headphones (priced at US$179) remain unchanged. We thus maintain our estimates. Salutica has been working on diversifying its client base in order to reduce customer concentration risk although we note that the projects potentially secured would start from a small base.

My suggestion go for BINACOM. Why? At RM0.38, still below its IPO price of RM0.46. Based on technical analysis, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0.485 levels.

KENANGA (Jan 17) KOSSAN has proposed to divest a piece of surplus land for a cash consideration of RM147.8m. We are positive on this development considering that the huge land acreage in Bidor is more than sufficient to keep the group busy with capacity expansion over the next several years. The gain from disposal is RM35.4m and expected to be completed by 1Q 2021. Our TP is RM5.25 based on 25.5x FY20E EPS (+1.0SD above 5-year historical forward mean). Maintain OP.

Meanwhile, our analyst covering PETGAS has raised his FY20 earnings estimate by 16% as the effective tariff cut in RP1 is smaller than expected. Headline tariff for PGU hike of 5.3% is largely due to the inclusion of IGC and hence causing a lower EBIT by 8%-10%, which is now part of its operating costs while RGT should see higher EBIT by 3%-5% with the inclusion of Pengerang Jetty into RAB. Share price has jumped post-announcement which is pricing it to perfection, in our view. Thus, we keep our MP call but at higher TP of RM17.60.

BUY HIBISCS (5199). At 0.97, Hibiscus Petroleum Berhad still below the price targets provided by 3 analysts that cover the stock of HIBISCS (5199) ; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55.

Call Me (Blondie) cover by Tess Mohr (Marilyn Monroe Style) “Call Me” is the theme song to the 1980 film American Gigolo.

CLOSURE OF BURSA MALAYSIA IN CONJUNCTION WITH THE CHINESE NEW YEAR HOLIDAYS

In conjunction with the Chinese New Year holidays, Bursa Malaysia will close the half-day afternoon trading session on Friday, 24 January 2020, and all day on Monday, 27 January 2020.

  1. Half-Day Morning Trading Session on Friday, 24 January 2020
    Trading on Bursa Malaysia will be opened for the morning session only. There will be no trading in the afternoon session. However, Clearing and Settlement services provided by Bursa Malaysia Securities Clearing; depository services provided by Bursa Malaysia Depository; and clearing and settlement operations of Bursa Malaysia Derivatives Berhad will continue as usual on Friday, 24 January 2020. The office of Bursa Malaysia Securities will remain open until the end of the business day.
  2. Bursa Malaysia will be closed for the Chinese New Year holidays
    Bursa Malaysia and its subsidiaries will be closed on Monday, 27 January 2020 in place of the Chinese New Year holiday which falls on Sunday 26 January 2020. Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 28 January 2020.

TODAY

KIP REIT posts 41% jump in property income for Q2

SUNBIZ (Jan 16) PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has recorded a 41% increase in net property income to RM14.73 million for the second quarter ended Dec 31, from RM10.45 million in the previous corresponding quarter.

Gross revenue grew 26.3% to RM19.73 million from RM15.62 million a year ago.

In a Bursa filing, the group said the commendable results were primarily attributable to the acquisition of AEON Mall Kinta City (AMKC) in July last year.

Net profit for the quarter also rose 16.9% to RM9.23 million from RM7.9 million previously, mainly due to lower borrowing cost, revenue contribution from AMKC and higher cost savings.

2Q20’s distributable income was RM9.4 million, 17.5% higher than 2Q19.

KIP REIT declared a distribution per unit of 1.76 sen for the second quarter, which represented an income distribution rate of 95%. Based on its closing price of 90 sen today, the annualised DPU gives a yield of 6.8%.

KIP REIT Management Sdn Bhd managing director Datuk Chew Lak Seong said the group would continue to look for areas of expansion and identify yield-accretive assets in the coming financial years as part of its acquisition strategy to enlarge its total assets under management to RM1.5 billion within the next five years.

I maintain BUY HIBISCS (5199). Price Target based on fundamental analysis by 3 analysts that cover HIBISCS (5199); DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55.

I like the night. Without the dark, we’d never see the stars.

TM, U Mobile explores 5G network sharing opportunities

BERNAMA via NST (Jan 16) KUALA LUMPUR: Telekom Malaysia Bhd (TM) and U Mobile Sdn Bhd have teamed up to explore network sharing opportunities using TM’s 5G Demonstration Project (5GDP) Langkawi network as the platform.

Under the partnership, both parties will be exploring several network infrastructures sharing models such as Multi-Operator Core Node (MOCN) or Multi-Operator Radio Access Network (MORAN), the companies said in a joint statement.

The collaboration reiterates both parties’ commitment towards enabling an efficient and cost-effective implementation for immersive, wide-area 5G coverage ahead of the full-scale infrastructure deployment in the country.

TM group chief executive officer Datuk Noor Kamarul Annuar Nuruddin said the company has been a strong advocate of infrastructure sharing, which had become the norm in many countries, including for 5G.

“As the industry gears up for the next wave of infrastructure investments to support innovative 5G use cases and ever-growing customer demand for mobile broadband, telcos are eyeing new ways of accelerating the deployment of an otherwise daunting investment.

“This is where collaboration will be key for telcos in an era of shared 5G networks,” he said.

Meanwhile, U Mobile chief executive officer, Wong Heang Tuck said 5G is a core priority of U Mobile.

Over the past few months, it has been conducting live trials to unleash the unlimited potential of 5G for various verticals such as healthcare.

“We are ready to roll out these services once 5G becomes commercially available.

“With this MoU, we hope to establish a win-win partnership with TM in the coming months as we approach 5G commercial availability this year, ” said Wong.

Before the spectrum becomes available later in the year, both telcos are now running full-fledged 5G live trials while continuing to upgrade their core network.

TM has already embarked on 11 use cases out of a total of 35 use cases under the 5GDP project undertaken by the Malaysian Communication and Multimedia Commission (MCMC) in Langkawi.

The use cases deployed by TM cover Smart City, Smart Tourism and Smart Agriculture clusters, focusing on making life easier, meeting the needs and enriching the lives of the rakyat.

As for 5G network, TM has installed eight out of the total 26 live 5G testing sites in Langkawi.

In addition, it has also deployed the operations of an Integrated Operations Command Centre (IOCC) or known as TM 5G Command Centre (5GCC) which is at the heart of 5G implementation in Langkawi.

U Mobile, on the other hand, has deployed 5G network in Langkawi and is showcasing 5G use cases for Healthcare, Tourism, Entertainment and enhanced Mobile Broadband (eMBB).

TM too expensive, U Mobile unlisted, my suggestion go for BINACOM. According to HLIB, Binacom is a potential beneficiary of outsourcing trends, spectrum reallocation exercise, the National Fiberisation and Connectivity Plan (NFCP) and changing technological trends (from 4G to 5G deployment in the long term), led by the mobile and fibre optic segments. Price Target? Well you can multiply the company’s projected earnings by your estimated multiple. The earnings-per-share estimate times your adjusted multiple will equal your stock target price. For example, if a company is estimated to earn RM2 per share and you estimate its earnings multiple at 20, then your stock target price is RM40 per share. Your choice. I always follow the price targets given by analysts from Investment Banks. But while analysts typically have similar credentials, they aren’t all the same.

TODAY

Climate change the next major investment theme

The Malaysian Reserve (Jan 16) FINDING the right investment theme is a major challenge for even the most seasoned investor. Famous investors like Warren Buffett have built their wealth by making the right investments over the long-term period.

While technology has been one of the major investment thematics in the past decade, smart money is now betting climate change presents a good long-term investment opportunity as the problem is still massively underestimated despite scientific data supporting the risk is real. Its implication on the world is becoming too apparent to dismiss it as a hoax.

In order to stabilise global temperatures within the +2ºC limit defined as “safe” by the Intergovernmental Panel on Climate Change (IPCC), spending on greenhouse gas mitigation will have to rise to at least US$2 trillion (RM8.16 trillion) a year over the next 10 years. That cost will have to be borne by governments, consumers and companies, according to a recent Schroders plc’s global equities outlook report.

Environmental changes are taking place more rapidly than ever, and thus demand investment strategies and decision to incorporate climate risks and the attention they deserve.

As we move into the new year, Schroders noted stock selection will become more important in 2020 as global uncertainty continues and the US bull market is showing signs of exhaustion.

“Given the levels of uncertainty affecting the global economy, the range of potential macroeconomic outcomes is quite wide. Following a 10-year period in which the S&P 500 has delivered a 250% total return (in US dollar) and global equities have more than doubled, it seems reasonable to assume more modest returns from equities going forward,” said global investment company Schroders.

Next Game Changer

Against that backdrop, Schroders noted asset allocations with portfolio exposed in mitigating climate change is expected to emerge as the next game changer in the reallocation of global fund.

According to Swiss Re Group, an insurance risk management company, direct economic losses related to global catastrophe and man-made disaster amounted to US$40 billion in the first half of 2019 alone.

As such, market awareness is heightened with investors favouring sustainable activities for the return outlook.

“There will be a significant number of beneficiaries from the switch to more sustainable activity. The process of energy transition is already well underway, despite rather lukewarm support from many governments, including the US. Happily, economic reasons continue to prevail, and the overwhelming cost advantage of wind and solar versus traditional generation sources is translating into a massive uplift for many renewable energy (RE) companies,” said Schroders.

While it is impossible to decarbonise completely, governments, regulators and companies around the world have started taking steps to address the urgency in making headways in sustainability themed investments.

The Malaysian government, for example, intends to raise its power generation capacity mix from renewable sources to 20% by 2025 from about 2% early last year.

Bank Negara Malaysia intends to engage financial institutions to better understand how they consider climate risks in their risk management approaches and practices.

International financial institutions like the International Finance Corp (IFC), which is a member of the World Bank Group, is providing a financing package of US$212.5 million to Vietnam Prosperity Joint Stock Commercial Bank to help expand its lending to small and medium enterprises and boost financing especially for climate-friendly projects.

Vietnam’s is one of the most carbon-intensive countries in the world, ranking only after China and Mongolia in the East Asian and Pacific region.

While reducing greenhouse-gas emissions has been a national target to mitigate climate change impact, it presents a US$753 billion climate investment opportunity for Vietnam between 2016 and 2030, according to an IFC study.

BlackRock Inc, the world’s largest asset management firm, announced as a substantial shareholder in Hilton, Park Hotels & Resorts and Red Lion Hotels, would place sustainability factor at the core of its investment approach and would exit any investment that deemed deterrent to the climate.

Its CEO Larry Fink in an annual letter addressed to clients recently stated: “Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance. The evidence on climate risk is compelling investors to reassess core assumptions about modern finance”.

Investment Opportunities

Where do climate-related investment opportunities lie?

Schroders noted some of the low-lying fruits are sectors like the automotive where sales of electric vehicles (EVs) are set to increase in the next few years driven, by a more favourable regulatory framework in many countries.

The international fund manager said demand for climate-friendly products will partly be determined by the attractiveness of the products themselves.

As these improve, consumers will migrate to EVs in the same way they adopted email, mobile phones, online shopping and entertainment streaming services.

In Malaysia, the immediate climate-friendly opportunities could be in the form of the handful of small-listed RE-based companies to consider or indirectly via the environmental, social and governance-based funds offered by various financial institutions. And as this thematic gains popularity, more opportunities may come to the market for excited investors over a good cause.


Life is like investing in the stock market. You’ll go through your share of ups and downs. But as long as you’re able to persevere through them, in the long run you’ll come out on top.

What’s Up Buddy?

RHB Technical Analyzer
16 January 2020
FKLI & FCPO: FKLI: Trailing Stop Holding Up

Maintain long positions. The FKLI ended the latest trade positively, adding 6 pts to close at 1,587.5 pts. The session’s low and high were recorded at 1,577 pts and 1,588.5 pts. The positive session means there is no negative follow-up from the prior session’s breakdown from the 50-day SMA line. As such, we still see the multi-month countertrend rebound that started from the low of 1,547.5 pts on 10 Oct 2019 as still in place. Towards the downside, a breach of the prior session’s low of 1,571 pts should signal the end of the said rebound. For now, stay with our positive trading bias.

Trading Stocks: UWC, Coastal Contracts, Kelington Group, Padini, Press Metal Aluminium & Elsoft Research

  • I maintain BUY HIBISCS (5199). Price Target based on fundamental analysis; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. Under the radar; BINACOM, KHEESAN. These stocks are considered under the radar for investors and potential value stocks.

I really liked “I Put A Spell On You“, as once again, Ann Wilson Of Heart just made it a special version all her own that was chilling.

Trading in stock market may sound interesting and exciting in your initial days especially when you earn some quick bucks but it’s easier said than done. You maybe fascinated towards the colourful charts and patterns and the entire environment might look attractive to you. But it is normally observed that most traders end up losing money in stock market over the years.

FUNDAMENTAL ANALYSIS

HLIB: Syarikat Takaful Malaysia (HOLD)
RHB discontinuing tie-up upon expiry
RHB announced it will not continue with their bancatakaful service agreement with STMB upon the expiry of its 5th anniversary on 31st July 2020. That said, we believe STMB stands a fair chance to rekindle their relationship given previous business successes together. However, they will still need to bid and compete with other takaful providers to resecure this, which in turn, may hit margins. Without RHB, we estimate STMB’s FY20-21 earnings could potentially fall 2-7%. For now, our forecasts are unchanged and the stock’s risk-reward profile is still balanced. Maintain HOLD with a lower GGM-TP of RM6.20 (from RM6.70), based on 3.50x FY20 P/B.

RHB: Syarikat Takaful Malaysia Keluarga (STMB MK, NEUTRAL, TP: MYR5.30) – DOWNGRADE
Coup De Théâtre; D/G To NEUTRAL
Company Update
Downgrade to NEUTRAL from Buy with a new MYR5.30 TP from MYR8.00, 7% downside with 3.6% yield. A major overhang has arisen after one of Syarikat Takaful Malaysia Keluarga’s preferred bancatakaful partners has decided not to renew its agreement. While STMB is not completely out of the game, it will likely have to compete in a bidding process. 4Q19 results could be soft, while FY20 earnings will normalise. We downgrade this stock in light of the near-term uncertainties and to pencil in a more conservative outlook.

I maintain BUY HIBISCS (5199). Price Target based on fundamental analysis by 3 analysts that cover HIBISCS (5199); DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55.