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The Pelham Blue Fund

Author: pelhambluefund   |   Latest post: Mon, 21 Oct 2019, 12:11 PM

 

THE COMPLETE LIST OF COUNTERS TO WATCH OUT FOR FROM BUDGET 2020

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This post first appeared at The Pelham Blue Fund, the premier day trading blog for Malaysia stocks and warrants. We take your market knowledge to the next level.

 

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To our audience who don't give a hoot about our long-winded stories that go nowhere and all that, here's a treat for you - just the list of stocks that we think would be affected in some way from the Budget 2020 speech last Friday. 

 

We'll keep the summaries short and highlight the relevant passages from the Finance Minister's speech (which you can read in its entirety here).

 

To be extra cute, we will also arbitrarily mark the stocks to indicate their must-watch-ness on Monday (14 October) and the rest of the week. 

 

* - "Can watch lah if bored"

** - "Can get the heart rate up abit only"

*** - "Uncle says you need to watch this"

 

 

SIMEPLT*

WESTPORTS*

IJM**

OPCOM***

OCK***

BINACOM***

SEDANIA**

GHLSYS**

REVENUE**

SOLARVEST

GENM*

OWG*

TOPGLOV**

HSSEB**

GAMUDA***

LITRAK**

LBSBINA***

MAHSING**

UEMS**

BJTOTO**

MAGNUM**

EKOVEST***

IWCITY***

 

 

A few caveats here:

 

1) These are just stocks that may be linked to the Budget 2020 announcements. They are not buy recommendations, and the potential impact is not necessarily a positive one. It's a watchlist.

 

2) We chose the themes that we feel are most relevant, or contain a direct impact, to the companies.

 

3) We chose the stocks that are most relevant and filtered out the more speculative names. We also left out certain lousy stocks that we would not buy in a million years.

 

4) These are short summaries only. You have to do your own homework and dig deeper.

 

 

PORTS

 

 

 

SIMEPLT - Largest landowner on Carey Island. The speech excerpt implies that the Carey Island port project is still seriously being considered, despite adequate capacity at Westports. This thematic is in the 5 to 10 years range, so don't get too excited just yet.

 

WESTPORTS - Klang Logistics Corridor to improve transport/efficiency.

 

 

 

 

IJM - Kuantan Port development funds.

 

 

BUILDING DIGITAL INFRASTRUCTURE

 


OPCOM - Fiber optic cables manufacturing, installation activities.

OCK - Provider of telecommunications network services.

 

 

BINACOM - VSAT capabilities and specialisation in satellite broadband tech.

 

 

SEDANIA - Hey, they just got into e-sports OK...

 

 

BUILDING DIGITAL COMPANIES

 


GHLSYS, REVENUE - Provider of electronic Point of Sale systems and payment services.

 

 

 

RENEWABLE ENERGY

 

 

SOLARVEST (to be listed on 26 November 2019) - Direct beneficiary of GITA and GITE. The company's unit also runs a solar leasing programme.

 

VISIT MALAYSIA 2020

 

GENM, OWG - What counts as 'new investments'?? We have no clue so far - the wording leaves things open to interpretation. We're just saying that theme park operators should really consider throwing some money into new theme parks to enjoy these benefits...

 

 

INCREASING THE MINIMUM WAGE

 

 

A lot of labour-intensive manufacturers are impacted by this, but we will pick TOPGLOV simply as a representative example. That RM100 increase sounds small, but it makes a lot of difference to both employee and employer.

 

What does 'major cities' mean? Where does the boundary lie between those who are entitled to get a minimum wage of RM1,100 or RM1,200? 

 

TOPGLOV's main factories are in Klang - is it a major city or not? Would its competitors - some of whom have factories that are definitively not in 'major cities' - have an upper hand? Interesting hypotheticals to consider.

 

 

WATER, WATER EVERYWHERE

 

 

 HSSEB - Already tendering for East Malaysia water projects. The contracts are there to be won.

 

 

MY WAY OR THE....

 


GAMUDA, LITRAK - Let's cash out, baby.

 

 

 

GET RID OF THAT OVERHANG

 

This cuts across a large swath of property developers in Malaysia, so let us be more specific. For this incentive, the clear(est) beneficiaries are property developers with substantial exposure in affordable homes priced at RM300,000 or so.

 

To narrow this further, it would likely be for homes located outside of the Klang Valley, given the price point. We discount any listed developers with exposure to PR1MA - the agency was not even mentioned in the speech...

 

For us, the compass points squarely at several smaller property developers with projects in states like Johor. So our representative pick is LBSBINA.

 

MAHSING, UEMS - inventory clearance soon hopefully. These are our two representative picks. Purely from our personal bias, we like the stocks.

 

 

 

NOMBOR EKOR, BRO

 

BJTOTO, MAGNUM - We think these companies should thank their lucky stars (ahem) as the Government inexplicably chose not to hike gaming taxes for NFOs.

 

 

BANDAR MALAYSIA

 

EKOVEST, IWCITY - Another round of this again then??

 

 

 

To conclude, we'll leave you with this quote:

 

 

"Where the hell are all the construction counters?"

 

 



 

 

 

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13/10/2019 12:39 PM
Anisdesanika Ha ha...
13/10/2019 3:19 PM
johnny cash The present government not paying attention to construction sector anymore.. Why i suspect there is some on going investigation still going on,
On corruption between the companies n our old government.. Cases are still hanging.. Investigation is still going on.. Very heavy corruption with the old government.. That s the reason the present government shifted the whole attention to something new, called Digital Economy..
13/10/2019 7:03 PM
johnny cash UNCLE, you had given some companies above based on the present budget announcement.. Which of the above companies are a very strong BUY based on the theme Digital Economy.. Which you think, will strongly run in coming months.. Give 3 choices only, the strong ones?
13/10/2019 7:08 PM
jameslimsingpoh susah cari makan
14/10/2019 8:45 AM
Musang King TO ME, IT IS THE MOST BORING BUDGET WITH NOTHING MEANT FOR THE CONSTRUCTION SECTOR AND NOTHING AT ALL FOR THE OTHER RACES OTHER THAN BUMI AND ISLAM. NOTHING LOOKS LIKE NEW MALAYSIA BARU PLEDGES AT ALL. ALL COPY AND PASTE. LGE SHOULD LET GO OF THIS PORTFOLIO AS YOU ARE MERELY DOING THE SAME JOB LIKE WHAT THE MCA DID BEFORE BUT MAYBE LOUSIER THAN MCA. AT LEAST MCA GOT SOME PROVISION FOR THE TAR COLLEGE. WHAT LGE HAS DONE SO FAR? WHAT A SHAME? ACTUALLY.
14/10/2019 2:46 PM


 

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