We have added 5,000 shares of MPHB @ RM3.57/share to the Dividend Yield Portfolio yesterday. We 

also still have 4,000 shares of MPHB in our Thematic Portfolio which we bought on 22 Jan-13 at RM3.32/share. We believe that the NFO is still undervalued. Its just-concluded decoupling exercise will re-rate the stock to a valuation similar to a pure NFO play. In addition, its new dividend policy of paying out at least 80% of its earnings from 50% in the past three years makes MPHB one of the attractive yielding stocks at 4%-5%. This matches our investment criteria for our DIVIDEND YIELD portfolio. MPHB is also our TOP PICK for the gaming sector with a DCF-derived price target of RM4.37/share.

 

Source: Kenanga