Highlights
KLSE: KENANGA (6483)       KENANGA INVESTMENT BANK BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
0.59   -0.005 (0.84%)  0.59 - 0.595  1,790,700
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Overview

Market Cap: 426 Million
NOSH: 723 Million
Avg Volume (4 weeks):488,765
4 Weeks Range:0.55 - 0.61
4 Weeks Price Volatility (%):
66.67%
52 Weeks Range:0.355 - 0.62
52 Weeks Price Volatility (%):
88.68%
Average Price Target: 0.90
Price Target Upside/Downside: +0.31
Stamp duty exempted for year 2020

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2020 [#1]  |  29-May-2020
Next QR | Est. Ann. Date: 30-Jun-2020  |  30-Aug-2020
T4Q P/E | EY: 36.59  |  2.73%
T4Q DY | Payout %: 5.32%  |  194.86%
T4Q NAPS | P/NAPS: 1.2084  |  0.49
T4Q NP Margin | ROE: 1.77%  |  1.33%

Headlines

Date Subject
02-Apr-2020 PublicInvest Research Headlines - 2 Apr 2020
02-Apr-2020 Mplus Market Pulse - 2 Apr 2020
19-Feb-2020 PublicInvest Research Headlines - 19 Feb 2020

Business Background

Kenanga Investment Bank Bhd is an independent investment bank. It offers the provision of nominee services, private equity, promotion and management of collective investment schemes and management of investment funds. The company has six operating divisions: Investment banking; Stockbroking; Futures broking; Money lending and financing; Investment management and Corporate and others. It derives most of its revenues from Stock broking segment.
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  4 people like this.
 
Victor Yong Kenanga's book value was RM1.22 as per the recent quarterly report, but market price is 56sen now... Thus, kenanga share price is greatly undervalued :)


Going by industry benchmark, Kenanga should be looking to pay around one to 1.1 times book value for Interpac.

Read more at https://www.thestar.com.my/business/business-news/2018/11/01/kenangain...
24/01/2019 6:38 PM
Victor Yong Price to Book ratio, less than 0.5, only 0.45 :)


Key Statistics
P/E Ratio 10.94
Shares Outstanding 698.82M
Price to Book Ratio 0.4500
Price to Sales Ratio 0.5958
1 Year Return-7.51%
30 Day Avg Volume 107,343
EPS 0.05
Dividend 5.36%
Last Dividend Reported 0.03
Earnings Announcement for Period Ending Q3/2018:02/28/2019
24/01/2019 9:26 PM
Victor Yong hope that kenanga will distribute all the treasury shares through share buyback to shareholders as share dividend :)

6483 KENANGA KENANGA INVESTMENT BANK BERHAD
Immediate Announcement on Shares Buy Back

Date of Buy Back : 24/01/2019
Description of Shares Purchased : Ordinary Shares
No. of Shares Purchased : 55,000 shares
Minimum Price Paid For Each Share Purchased : RM 0.555
Maximum Price Paid For Each Share Purchased : RM 0.560
Total Consideration Paid : RM 30,969.14
No. of Shares Purchased Retained in Treasury : 55,000 shares
No. of Shares Which Are Proposed To Be Cancelled : 0 shares
Cumulative Net Outstanding Treasury Shares As At To-Date : 23,978,900 shares
Adjusted Issued Capital After Cancellation : 722,741,399
Date Lodged With Registrar of Company :
Lodged By :

Remarks:
You are advised to read the entire contents of the announcement or attachment.To read the entire contents of the announcement or attachment, please accessthe Bursa website at http://www.bursamalaysia.com


Submitted By:



24/01/2019 05:56 PM
25/01/2019 9:19 AM
Victor Yong kenanga could also offer for sale like osk investment bank to RHB (rhb share swap + cash) but to other banks. :) cheap valuation now, easy to find buyers :)
25/01/2019 9:34 AM
Victor Yong The negative factor, low volume is traded, low liquidity
26/01/2019 3:23 PM
Darren Tay The result is bad , better throw before the qr out
07/02/2019 2:56 PM
28/02/2019 6:18 PM
Ravi Kumar KENAGA IS FALLING KNIFE. CAN'T MAKE MONEY SHARE ON DOWN TREND ANALYST CALLS ARE BOGUS. POOR FINANCIALS. BUYING INTERPAC TO BOOST REVENUE BUT IN REALITY POOR MANAGEMENT. THROW NOW THROW NOW. FALLING KNIFE
20/03/2019 8:05 AM
commonsense Kenanga only managed to deliver a profit of RM 11.9mil to its shareholders in FY18 which is less than half of what was achieve in FY17. The main culprit for this underperformance is the credit loss expense which amounts to RM29.8mil of loss vs FY17 of only RM1.6mil. If you look at the operating profit, the company actually delivered a rather flat result of RM51.4mil vs RM54.9mil in FY17. Unless the company is expected to record another massive credit loss again this year, expect FY19 profit to rebound back at around RM20mil.

That being said at the current share price and assuming a profit of RM20mil in FY19, the company would be valued at 18.3x PE which is considerably high.

If you are looking to hedge your portfolio outside of Kenanga (due to its high valuation) I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.4x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.

FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).

MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.3x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.

Good luck.
25/03/2019 11:12 AM
Kenny Yap Div 0.011@19/4 Ex 9/4... what's next?
26/03/2019 10:39 PM
Kenny Yap Kenanga acquiring Libra...good prospect...?
28/03/2019 9:00 PM
chamlo How abt Chay Wai Leong resign from Bursa news? Is it good news?
28/03/2019 9:05 PM
David Gunter Shit share
30/03/2019 5:11 AM
abang_misai Haha, true. This is cibai counter
30/03/2019 5:31 AM
David Gunter Abang misai wonder what that stupid moron Steven Chan would rate Kenaga TP? no bola cos if he downgrades he will get the sack
30/03/2019 2:00 PM
FortuneBlooming Kenanga FY18: PAT 11.9 mil

Dayang FY18: PAT easily about 150 mil

But Kenanga came to Dayang, gave a downgrade report on Dayang.

Should be the other way round. Should be Dayang coming to Kenanga, then giving a downgrade report on Kenanga.
02/04/2019 1:21 AM
BountyOfTheBourse Kenanga now under the spell of a curse from Dayang
02/04/2019 3:29 PM
DreamConqueror It's not worth even 30 sen
03/04/2019 10:45 PM
luckypunting wah ... suddenly up ... why?
05/04/2019 10:17 AM
HK_protest Bank consolidation is right move to boost stock market but when? Change PM or change govn in GE15?
07/08/2019 12:12 PM
HuatAh8809 Rubbish company, slow ass with lousy investment research report
31/08/2019 1:52 PM
Good123 kenanga could rebound with its Japanese link.Rakuten enters Malaysia’s Online Stock Trading Space with a RM30 million investment

LORRAINE LEE

 on Tuesday, May 23, 2017 at 3:02:09 am

Rakuten Trade Sdn Bhd (“Rakuten Trade”), a joint venture company between Kenanga Investment Bank Berhad (“Kenanga IB”) and Japan-based Rakuten Securities, Inc. (“Rakuten Securities”) was officially launched to much fanfare on 18th May 2017, in Kuala Lumpur. Officiating the launch was Yang Berhormat Dato’ Lee Chee Leong, Deputy Minister of Finance Malaysia.

As Malaysia’s first completely online equities broker, Rakuten Trade is set to revolutionize online stock trading with its platform, iSPEED.my, which runs on cutting edge Japanese smartphone technology. In fact, Rakuten Securities hosts Japan’s most downloaded trading application, since 2008, where up to 90% of stocks are traded online.



L-R: Kaoru Arai, Managing Director, Rakuten Trade and Yuji Kusunoki, President of Rakuten Securities elaborating on iSPEED.my

The Malaysian replica, iSPEED.my platform will not only facilitate robust trading but for the first time, Malaysians are able to open an equity trading account completely online for trading on the local bourse. The localized version of this leading Japanese app, iSPEED.my offers traders:

First in market online account opening

Among Malaysia’s lowest brokerage rates

A financial portal to access simplified research materials and real-time market information easily

Fast and seamless cash transfers

Educational programs including webinars, on-site seminars, and

An extensive first-of-its-kind reward programme, which brings together three leading loyalty providers – AirAsia BIG, BInfinite by Berjaya Group and BonusLink – under one ecosystem.

iSPEED.my’s web and mobile-based trading services touts to offer a 3600 trading experience that spans from account opening, execution to settlement of trade. It deals with stocks listed on Bursa Malaysia only at the moment. Rakuten Trade aims to achieve profitability within the first three years and capture up to 30% of the country’s retail market share by then.
It offers among the country’s lowest online brokerage fees:

Transaction sizeOnline brokerage fees< RM1,000RM7 flat rateBetween RM1,000
25/11/2019 10:44 AM
Good123 the younger generation will surely trade or invest online. time to include kenanga in your portfolio. 52 week low
25/11/2019 10:45 AM
Good123 net assets per share rm1.27
25/11/2019 1:30 PM
Good123 quarterly results to be announced should be ok
25/11/2019 1:30 PM
Good123 fish now or never Target Price: RM0.600, RM0.630

Last closing price: RM0.550

Potential return: 9.0%, 14.5%

Support: RM0.530

Stop Loss: RM0.500

Possible for bottom fishing. KENANGA is showing early signs of potential bullish reversal from its prior downtrend. Improving RSI and MACD indicators currently signal reasonable entry level, with anticipation of continuous improvement in both momentum and trend in near term. Should resistance level of RM0.580 be broken, it may continue to lift price higher to subsequent resistance levels of RM0.600 and RM0.630.

However, failure to hold on to support level of RM0.530 may indicate weakness in the share price and hence, a cut-loss signal.

Source: PublicInvest Research - 24 Apr 2019
25/11/2019 9:07 PM
Victor Yong UNABLE TO COMPETE WITH BANKS , I MAY BE WRONG
26/11/2019 6:26 PM
luckypunting good dividend
05/03/2020 10:54 AM
bnmacai ada tuan2 dan puan2 di sini?
23/03/2020 8:25 PM
luckypunting Lately KLSE trading record high volume ... good earning for stockbroking company....may be this is y it spikes
15/05/2020 10:42 AM
Richard Wong https://www.facebook.com/photo/?fbid=3870045206370610&set=a.729386893769806
25/05/2020 11:28 PM
Richard Wong 1。50% owned Rakuten start turn to profit in 2020 Q1, and probably can do better in 2020 Q2.
2. Last year expended and spend RM50m acquired Libra finance, this year should contribute positively.
3. After Kenanga merge with ECM, their branches expanded to more then 40. Moreover, they cut cost by merge branches in same city to maximise profit.
4. 18 Feb 2020 Petronas assigned Kenanga to list its supllier's O&G unit in KLSE. This should bring benefit to Kenanga in next half of 2020.
5. Q1 KLSE turnover is 2b+, Q2 April and May we saw turnover up by 1.5 times. Estimate June turnover should be higher then Q1 average as well. Hence, we expect Q2 result announe in Aug 2020 should up by 3 times, 3.75cents earning per share.

Currently, Kenanga NTA is RM1.29, transacted price at RM0.54. DY 6% or 3.25cents. While the profit up in 2020, we estimate it's dividend should increase to 5cents or DY 9%.

In a nutshell, not many company zero impact due to MCO. During this difficult time it is hard to get a company which can up their profit by 3 times. Hence, we believe Kenanga is one of the best stock to hold in year 2020. It is much safer compare to those company with coming bad result while the share price is up. Kenanga probably is one of the best choice in year 2020.

source:
https://www.sinchew.com.my/content/content_2219461.html

https://www.theedgemarkets.com/article/rakuten-trade-makes-maiden-profit-after-three-years-operation

https://www.nst.com.my/business/2019/12/543905/kenanga-investors-libra-invest-consolidation-exercise-completed

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3024298

https://www.enanyang.my/探索股市/?stock_name=bursa_malaysia_daily_trading_participation

https://www.theedgemarkets.com/article/kenanga-collaborates-rakuten-securities-new-online-broking-platform
25/05/2020 11:30 PM
wbwanabe For those who missed the glove bull runs, do not be despaired cos there are lots of other opportunities in this current market. Take a look into stock broking business! They are direct beneficiaries from the heavy buying and selling of stocks and warrants. I would like to recommend Bursa cos it is the Taiko in KLSE but due to its price, let me suggest an alternative, ie Kenanga. Why?
# cheaper entry at an average price of 0.555
# they are one of the most active call warrants issuing house
# best of all, they have a 50% JV with Rakuten making this the potential cash cow in their group holding

The Edge published an article on 13th May 2020 about Rakuten making profit just 3 years into its operation in Msia. That should ring some bells to those who knows how to calculate the P&L of stock broking business. What makes Rakuten different from other stock brokers are :-
# ease of opening an account- everything is done online! This hassle free application makes it attractive to current digital savvy generations. During MCO, the applications for new accounts must have hit sky rocket.
# offers the lowest stock brokerage fees in Msia. It starts at rm7 to a max of rm100. For those who buy and sell in huge amount, this cap of rm100 is one of the tools they use to max their transactions and profits. This results in very huge transaction volumes for Rakuten as well. Win win situations.

In this current market where a lot of people are being lay off or retrench, one of the avenues ppl turn to is stock market. Loan moratoriums, money received from retrenchment benefits or VSS, low interest rates (makes it attractive to borrow/share margin and unattractive to put your money in banks) plus the question of “where is the best place to grow my money” will definitely propel the earnings of stock broking companies.

Kenanga 1st quarter report is due anytime soon and your guess is as good as mine in regards to its earnings. But I am sure their 2nd quarter due in August is going to be one of their best, just like the glove companies. Hence why I recommend to look into stock broking business as an alternative. Just look at Bursa’s daily volume in recent months and the frustration we faced in executing our transactions. Huge bottle neck.....
29/05/2020 11:36 AM
Bobii wah real QR bomb is here
29/05/2020 6:33 PM
limitupupup wah really lampaaaa QR earning stock but already up so much, time to limit down
29/05/2020 9:31 PM
i3lurker yeah limit down time
29/05/2020 10:24 PM
ry_1111 just an one off adjustment to recognise the impairment for margin trading due to the stock market crashed in Mar'19
29/05/2020 10:38 PM
ry_1111 anyway, a loss is a loss, sell down is inevitable, but i believe Q2 will be very nice results as many margin traders start earning handsome profits traders may
29/05/2020 10:39 PM
ry_1111 impairment may be reversed? who knows? their JV platform rakuten has record high new registration in Mar
29/05/2020 10:41 PM
ry_1111 i will monitor this stock and if sell down to low price i will grab some share definitely for incoming Q2 results, my 2 cents
29/05/2020 10:59 PM
mf Health-care stocks rally: Trader has a way to play boom
PUBLISHED FRI, MAY 29 20201:44 PM EDT
30/05/2020 4:44 AM
profitgrow is kenanga 1Q report good? sorry.. old man don't understand the report.
31/05/2020 9:27 PM
terence775 @profitgrow it's not good, not bad. Nothing really spectacular. I think there are better counters to trade at the moment :)
01/06/2020 11:33 AM
luckypunting traders are looking at q2 result and pushing up the price ... why so early? :p
01/06/2020 3:40 PM
qqq33333333 look at Kenanga....they got 50% Rakuten...$ 4 billion in customer deposits. ...but very badly managed........I mean how can a broker......I mean, how can a stock broker has $ 70 million brokerage fees and $ 70 operating expenses for the 3 months ended 3//2020?...................................................one year $ 280 million for salaries and overheads for such a small operation?
01/06/2020 3:57 PM
xterrorsinx We are cautiously optimistic of our business outlook for
the year. As at end April 2020, we have reversed some of the credit provisions made in first
quarter and are on track for a turnaround in the following quarters.
03/06/2020 11:44 PM
xterrorsinx Bursa Transaction Volume
March QR 19 - 169b
March QR 20 - 219b (29.59% increase)

Brokerage Revenue
March QR 19 - 37m
March QR 20 - 48m

Brokerage Profit Margin - 15%

Volume forecast Bursa
April - 115b (actual)
March - 120b (actual)
June (forecast) - 120b
June QR 2020 - 355 (62% from March QR 2020)

Expected Brokerage Revenue June QR 2020 = 48 x 1.62 = 79m
June QR 2019 Brokerage revenue = 38.3m
Increase in brokerage revenue = 79 - 38.3 = 40.7m
Increase in PBIT due to increase in brokerage = 40.7 x 15% = RM 6.1m

thing to note:
Rakuten Users in May 2020 - 32,500
Rakuten Users in March 2020 - 70,000

100% increase. Brokerage income increase = 6.1m x 2 = 12.1m
12.1 x 70% (tax) = 8.4m extra per quarter or 33.6 NPAT/ year.
03/06/2020 11:55 PM
xterrorsinx TP = 0.86
03/06/2020 11:57 PM
Value_Investor_888 Can be foreseen that next quarter earning will be very good with higher trading volume & value at Bursa due to increasing of retailers participation in the market. Furthermore, it will reverse some of the impairment made during Q1. Look at Bursa's share performance we can see Kenanga is still lag behind. Other like e-force, N2N will benefit as well from higher trading volume + value in the market!
09/06/2020 2:03 PM
veritas #xterrorsinx
Good analysis but where did you get the Rakuten user numbers from ?
May 2020 less than Mar 2020 ???
14/06/2020 1:40 PM


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