Malaysia Portfolio Investment Calls and Stock Market Update (6 May 2020)

Disclaimer: This research should be used purely for informational purposes and is my own personal opinion. I bear no responsibility to whatever investment decisions taken by anyone with regards to this research.

The Kuala Lumpur Composite Index (KLCI) today declined by 0.9% to finish at 1,390 points, reversing yesterday’s gains. Most investors were selling off banking stocks as the lowered interest rates reduces interest income. Markets in the Asia region were down with the exception of Singapore Straits Index (0.8%) and Hang Seng Index (1.1%), while the Dow Jones climbed 0.4% with the German Stock Index climbing by 2.5%.

I added Dayang Enterprise Holdings today to my calls, as I view the company as severely undervalued now trading at a price earnings ratio of 5.8x. While Dayang has suffered in the past, its revenue growth has been impressive in the past 2 years (2018: 35%, 2019: 11%). My conservative valuation of the company yielded a share price of RM2.62 (Current share price: RM1.35), assuming that revenue declines 20% in 2020, and growing by only 2% the subsequent years.

For the Malaysian companies I am keeping track, most of them are still up. The best performing companies in terms of share price are Lotte Chemical Titan (54.2%), Padini (23.1%) and Bermaz Auto (14.6%). To date, the portfolio of companies I am keeping track on have moderated to 7.6% return (5 May 2019: 8.4%). You can have a look at the companies I am keeping track on in the Google Excel sheet here or the table below.