JayCorp had acquired a construction company and got a good contract recently. It is expanding. It bid for Sabah Borneo Highway project, that is the company we know. Who else you know tender the same project? Now banning rubberwood from export will help it increase production. Giving good bonus early to their staff will keep the labor force and attractive more to join in settling labor shortage problem. Giving earlier div of 5 cents is its creative way of improvement its share price and benefit its shareholders early. How good is it managing?
BUY on breakout with a target price of RM1.72 and stop-loss at RM1.37. The uptick in the DMI and the increase in trading volume suggest buying momentum is set to continue in the near term. We expect the stock to continue trending up towards the breakout level of RM1.48 in the current upleg. A breakout above this level would extend the uptrend towards the previous high of RM1.62, the psychological resistance level of RM1.62 and our target at RM1.72.
KUALA LUMPUR: The ringgit closed lower against the US dollar today in line with most Asian emerging currencies, as risk-averse sentiments weighed down markets.
At 6pm, the ringgit stood at 4.2935/2965 against the greenback, compared with Thursday’s close of 4.2900/2930.
A dealer said escalating geopolitical tension between the US and North Korea continued to dampen investment sentiments in emerging markets and contributed to losses in Asian currencies as investors swarmed safe haven assets.
Meanwhile, the ringgit closed mostly lower against a basket of major currencies.
The local note fell against the Singapore dollar to 3.1461/1495 from 3.1438/1474 on Thursday, and depreciated versus the yen to 3.9365/9396 from 3.9035/9077. It slipped versus the euro to 5.0479/0518 from 5.0232/0284 yesterday, but strengthened against the British pound to 5.5644/5696 from 5.5736/5779 on Thursday. -- BERNAMA
Good job TQ JacksonYuen。 Positive Development On US Import Tax – Jay Corp Berhad (Q3 FY17) Last Traded Price RM 1.43 Target Price RM 1.67 (from RM 1.43) Est. Return 15.55% Rating BUY (From Neutral) Price to Earnings 8.6x Price to Book 1.3x 1) Though economic data is optimistic, it is primarily driven by the weak MYR.
Malaysia External Trade Development Corporation’s data showed that the total export was RM451bil between Jan-Jun 2017, up c. 21% YoY. It is due in large part to the weak performance against major currencies. We believe the actual organic growth for export is around mid-single digit. Management also explained that the robust performance is due to stronger overseas demand and favourable FX environment. Many JayCorp’s segments have improved significantly with a couple segments started to generate profit from loss.
2) Political tension results in favourable FX movements.
In line with the textbook world, current situation between the US and N Korea is expected to see money flowing back to US which will see a stronger USD in the near future. We do not foresee any material adverse change in US’s economic activities. However, it will affect market’s sentiment, and we have seen money flowing into bond funds (source: wealthmanagement.com). It may results in lower trading multiples.
3) The most welcoming news is the US ditching the import tax.
Initially, we were concerned about the negative impact of import tax, but the Republican sees ‘many unknowns’ associated with it thus decided to abandon the plan. The decision that could potential raised over a trillion of tax revenue over a 10-year horizon. Very positive to many export-oriented counters. The attention is now on the friendly domestic tax rate to allow US companies to compete with foreign companies.
4) Revisit our relative valuation, upgrade to BUY rating.
We re-assessed our relative valuation and added Lii Hen to our sample. We believe that JayCorp is fairly valued at RM 1.65 which offers an upside potential of 15.55%. We are upgrading the rating from Neutral to BUY on the following considerations:
Reasonable trading multiples which reflect sizable discount to the industry peers Stronger USD to support its export-related revenue (North America contributes almost 30% of income). Healthy domestic demand as reflected by an increase in residential loan growth. Though we believe there is a reasonable discount to the fair value, we do not exclude the possibility that the share performance may outweigh by temporary negative market sentiment and fund outflow from foreign institutions.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
shortinvestor77
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Posted by shortinvestor77 > 2017-07-18 20:38 | Report Abuse
Ok.