You should know that wafer acts like buffer.


When semiconductor demand increases, wafer shortage may prevent Kesm's net profit from increasing rapidly.

When semiconductor demand decreases, wafer utilisation rate will increase, so it may prevent Kesm's profit from decreasing rapidly.

That's why it is unlikely that Kesm's net profit will decrease rapidly.,,

Valuations of MPI and Kesm are attractive now.

Oil price rally boosts electric car sales
https://www.businesstimes.com.sg/opinion/oil-price-rally-boosts-electr...

The PHLX semiconductor index was up 1.97% on Friday.

September 2018 Plug-In Electric Vehicle Sales Soar In U.S.
https://insideevs.com/september-2018-plug-in-ev-sales-soar-in-u-s/

U.S. Reaches 1 Million Electric Vehicle Sales
October 11, 2018
http://energyfuse.org/wp-content/uploads/2018/10/million-ev-sales.png

Electric vehicle sales achieve new record in Norway with 45% of new cars being all-electric and 60% plug-in
https://electrek.co/2018/10/01/electric-vehicle-sales-new-record-norway-tesla/

KESM should promote sales in Europe as well.

Prospect of Trump-Xi talks raises hope for thaw in trade war

https://www.washingtonpost.com/world/asia_pacific/china-says-in-communication-amid-report-of-trump-xi-meet/2018/10/12/e5c61380-cdf8-11e8-ad0a-0e01efba3cc1_story.html?noredirect=on&utm_term=.defba3269983

Prospect of Trump-Xi talks raises hope for thaw in trade war
https://www.washingtonpost.com/world/asia_pacific/china-says-in-communication-amid-report-of-trump-xi-meet/2018/10/12/e5c61380-cdf8-11e8-ad0a-0e01efba3cc1_story.html?noredirect=on&utm_term=.defba3269983

8月制造业销售扬8.1% | http://www.klsescreener.com/v2/news/view/442674

good

中國9月出口增14.5%　遠超預期 | http://www.klsescreener.com/v2/news/view/442872

中國9月出口增14.5%　遠超預期 | http://www.klsescreener.com/v2/news/view/442872

Great

8月制造业销售扬8.1% | http://www.klsescreener.com/v2/news/view/442674

Hong Kong and Singapore do not impose the CGT.
Stocks in emerging markets are bearish due to US-China trade war concerns.
I believe imposing CGT will have a great impact on the Malaysian market.

Imposing CGT should be delayed by a few years.

The sales and services tax (SST) should be increased instead of implementing the capital gain tax. Increasing SST is more effective to increase the country' revenue because all Malaysian people need to pay it. In constract, only some people need to pay CGT.

8月制造业销售扬8.1%
http://www.klsescreener.com/v2/news/view/442674

China's Sept trade surplus with US hits record $47b. https://www.straitstimes.com/business/economy/chinas-sept-trade-surplus-with-us-hits-record-47b

Trump’s tariffs on China are doing the exact opposite of what they’re supposed to. https://qz.com/1422225/the-us-china-trade-war-has-made-chinas-trade-surplus-bigger-than-ever/

The PHLX semiconductor index was up 1.97% on Friday.

8月制造业销售扬8.1% | http://www.klsescreener.com/v2/news/view/442674
中國9月出口增14.5%　遠超預期 | http://www.klsescreener.com/v2/news/view/442872

中國9月出口增14.5%　遠超預期 | http://www.klsescreener.com/v2/news/view/442872


8月制造业销售扬8.1% | http://www.klsescreener.com/v2/news/view/442674

Long-Awaited Slowdown in China Exports Still Isn’t Happening. https://gooruf.com/asia/news/2018/10/13/long-awaited-slowdown-in-china-exports-still-isnt-happening/

Increase in corporate tax will affect the Malaysian economy negatively.

It is not a good time to implement capital gain tax as stocks in emerging markets have been bearish.

O% GST this year was not necessay.I think the government should increase GST, not the corporate tax.

Kwap is a net buyer of Kesm in October.

Despite drop, Goldman sees Asian stock rebound in Q4 | http://www.klsescreener.com/v2/news/view/440928

Kesm proposes 6 sen dividend

net profit (YoY)

Kesm: -15.57%
Inari: -12.98%
Unisem: -26.01%
MMSV: -69.21%

The stock price is attractive comapated to Unisem.

Revenue grew to RM349.8 million or a marginal 3 percent increase from RM338
million in the previous year.

Mr. Sam Lim, Executive Chairman & Chief Executive Officer of KESM explained,
“Net Profit declined by 11 percent to RM39.3 million from RM44.0 million a year ago.
This weaker performance was caused by higher taxes and supply issues. Earnings
per share also lowered to 91.5 sen from 102.3 sen last year.
Mr. Sam Lim, Executive Chairman & Chief Executive Officer of KESM explained,
“Our result was affected by a crunch in the supply of materials and poor yields of new
devices experienced by our customers. This temporary delay hindered our expansion
progress. Hence, we made a decision to hold back some of our investments, which
gave us a surplus to pay higher dividends to our shareholders.”
He added, “Two months ago, we declared an interim tax exempt dividend of 12.5
sen per share amounting to RM5.4 million. In addition, we will be proposing a final tax
exempt dividend of 6 sen per share amounting to RM2.6 million, at the next AGM to
be held on 10 January 2019.
He added, “We operate in the semiconductor industry which is expected to grow
by 7.3 percent to total US$451 billion this year from US$420.4 billion in 2017.”
He concluded, “We have a sound strategy to deliver profitable growth, and with
the favorable market condition, our prospects remain optimistic.”
http://malaysiastock.biz/Company-Announcement.aspx?id=1087383

Trade war to be positive for Malaysia over the next year or so, especially in electronics and steel production industries

http://www.theedgemarkets.com/article/lim-guan-eng-uschina-trade-war-has-benefitted-malaysia-short-term

It's a good time to collect the stock more.

The Phlx semiconductor index was up 1.11% on Friday.

* Trade war to be positive for Malaysia over the next year or so, especially in electronics and steel production industries

http://www.theedgemarkets.com/article/lim-guan-eng-uschina-trade-war-has-benefitted-malaysia-short-term

The next QR announcement is likely to be very good.

美中貿易談判露曙光 亞股聞訊止跌回揚 |
=

http://www.klsescreener.com/v2/news/view/429686

美中貿易談判露曙光 亞股聞訊止跌回揚 http://www.klsescreener.com/v2/news/view/429686

https://www.thestar.com.my/business/business-news/2018/06/18/pentamaster-locks-in-rm314mil-worth-of-orders/

the Phlx semiconductor index was up 1.10% yesterday.

http://www.theedgemarkets.com/article/malaysiasingapore-hsr-deferred-two-years

WOW! China Rebar Price
http://www.sunsirs.com/uk/prodetail-927.html

Malaysia-Singapore HSR deferred for two years
http://www.theedgemarkets.com/article/malaysiasingapore-hsr-deferred-two-years

WOW! China Rebar Price
http://www.sunsirs.com/uk/prodetail-927.html

關稅戰敲響半導體警鐘　本地業者或因禍得福

http://www.klsescreener.com/v2/news/view/428152

JPMorgan Sees MSCI China Rebounding 14% as Sell-off Is Overdone
https://www.bloomberg.com/news/articles/2018-08-29/jpmorgan-sees-msci-china-rebounding-14-as-sell-off-is-overdone

Inari – What to Expect From Samsung’s Note 9? http://klse.i3investor.com/m/blog/kltrader/170683.jsp

Ann Joo’s FY18 profit seen better on stable sales, higher margins | http://www.klsescreener.c

https://m.scmp.com/news/china/policies-politics/article/2160283/expected-donald-trump-xi-jinping-meeting-november-goal

https://m.malaysiastock.biz/Blog/BlogArticle.aspx?tid=21494
MRCB

https://m.malaysiastock.biz/Blog/BlogArticle.aspx?tid=21494
IJM

China stocks rally on hopes of gov't boost for tech firms, healthcare rebound. https://www.nasdaq.com/article/china-stocks-rally-on-hopes-of-govt-boost-for-tech-firms-healthcare-rebound-20180809-00031

Apple wants iPhone to be proof of identity and replace passports. https://appleinsider.com/articles/18/08/09/apple-wants-iphone-to-be-proof-of-identity-and-replace-passports

next JHM

09-Aug-2018 Insider KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (a substantial shareholder) acquired 20,100 shares on 08-Aug-2018.
07-Aug-2018 Insider KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (a substantial shareholder) acquired 5,400 shares on 06-Aug-2018.

PHLX Semiconductor index was up 0.78% yesterday.