Ultimate Stock Tips

My Stockpicks 2022: Quarter Report commentary (August)

Publish date: Sun, 28 Aug 2022, 06:18 PM
Unique content created once in a blue moon to increase the quality of articles of klse.i3investor.com. (used to be weekly)

As per title:


Revenue recovery was great. Profit after tax was a let down. Cash used in operations reduced substantially, but cash used in investment grew a lot too. I still believe in tourism recovery sectors. Share price might fall in next few weeks before rising in next few months. Although I'm less confident on their super app ventures, CAPITALA's airline business is still the de facto choice for flying. High oil prices is a headwind, but didn't Airasia face such issues years ago? 


Quarter report should be out this week. Dividends should be announced. I expect PBBANK to report improved profits & dividends, in tandem with economic recovery. Loans for properties should increase.


Quarter report was released weeks ago with share price rising in tandem with increasing profits. 40sen dividend to be distributed. I think highly of brewery stocks as social functions, e.g. weddings, mamak going back to pre-Covid times and predictable cash flows from a stable business. Even if government announces increase in alcohol taxes in upcoming budget, it should only be a temporary setback. 


Revenue increase was expected but the slight loss after tax was a bit disappointing. 6sen dividend declared. Recovery should be sustainable although management is "cautiously optimistic" in the short term. Target price from IBs range from RM3 to RM3.91, mostly using sum of the parts valuation. 


Analysts' retained their "buy" ratings but from INARI's declining quarter-on-quarter revenue & profit, I think not buying would be prudent. Semiconductors are undeniably essential to daily life & I think INARI will do well over longer term. However, in the shorter term, Mr. Market hates companies that show signs of slowing or stagnant earnings growth or have peaked. The Federal Reserve's stand of fighting inflation means interest rate hikes ain't stopping soon to cool down the hot inflation.


Recent financial performance was reasonable. Properties or cars selling at rather affordable prices should do well in an economy that is gradually recovering from the devastating pandemic. 3sen dividend from MATRIX while 6sen + bonus 10sen dividend from MBMR. 

MATRIX is buying a new piece of land for property development in 3-4 years & net gearing will increase in the meantime. 

MBMR's performance was boosted by the sales of cars before SST exemption ending June 2022. 

The interesting part is MBMR's investment bank analysts. 

While Maybank IB & Hong Leong IB gave rosy target price of above RM4 for MBMR, RHB IB opted for a conservative TP of RM3. While only time will tell who is more accurate in forecasting, HLIB was unique in its sum of parts valuation, which differed from the rest.


MFCB seems to only know how to generate positive cash flow, but don't know how to generate hype. Traits of a growth stock, but behaves like a slow stock. MFCB has steadily improved its finances, yet its share price hasn't moved much. Value investors who don't mind its net debt may find MFCB enticing. Its trailing PE is <10 & IBs have given MFCB a target of >RM4 using sum of parts valuation. MFCB's Don Sahong power plant is dependant on Mekong River's flow rate. Perhaps the low PE is due to fears of drought which could affect the Mekong riverflow, like the drought in Europe and China now.  


Investors have gone from "Oh my, HARTA!" (share price going up) to "Oh my heart, Argh." (share price going down). 

Ok, bad joke. Just wanna lighten things up for gloveholders now. ​ it's all doom & gloom.

My comments on gloves remain the same as the one article I posted previously. 

I had made the wrong assumption that gloves had bottomed previously, and now it continues its seemingly bottomless-pit fall. 

Aug 2020, investors rushed into the stockmarket to buy stocks.

Aug 2021, investors started worrying about stocks. 

Aug 2022, investors wanted to leave the stockmarket. 

Such is the cycle of the stockmarket. 

What could happen in Aug 2023?

On a side note, the bagholders of SERBA suffered further woes with the stock plummeting 50% last week after news that the Court appointed an interim liquidator. This is a lesson to us all. When a company is fundamentally not right, it's definitely not right to continue holding, as it might go to zero. 


Some quarter results have been encouraging, some lackluster, & even disappointing, I am "cautiously optimistic".  "Cautious" to anticipate minor crashes like last Friday. "Optimistic" to have confidence that stocks will bounce back in future and to hold onto my stocks. The KLCI in the past week closed at 1500.29, but it's possible for KLCI to ricochet between 1450 and 1550 in the next few weeks.

Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author has interest in some stocks mentioned above.

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