ITS ONLY FAIR TO NOTE THAT SYMLIFE'S FUNDAMENTALS HAD IMPROVED SIGNIFICANTLY SINCE THE COMPREHENSIVE ANALYSIS WAS POSTED BACK IN 2015

THE ABOVE REPORT HAD COMPUTED SYMLIFE'S RNAV AT RM4.34

IF DISCOUNTED AT A REASONABLE 50%, SYMLIFE'S TRUE/INTRINSIC VALUE WILL BE RM2.17.

THE 2 MAIN CATALYSTS TO PROPEL ITS SHARE PRICE UP TO ITS INTRINSIC FUNDAMENTAL VALUE OF RM2.17 ARE STATED ABOVE

REVIEW & UPDATING

SYMLIF'S UNBILLED SALES CITED IN THE ABOVE REPORT WAS ONLY RM700M.
THIS HAD NOW GROWN TO AT LEAST RM1.5B AND APPROCHING A PROSPECTIVE RM2B. CLEAR VISIBILITY POINTING TO ROBUST GROWTH IN REVENUES, PROFITS AND GOOD CASH FLOWS FOR MANY YEARS GOING FORWARD. THE STRONG UPTREND IN ITS PROFITS ALREADY SEN IN ITS 9M PROFITS JUMPING UP BY 378% (FROM 4.2M TO 20M). ITS 3Q PROFIT WAS MORE IMPRESSIVE (UP 553% (9.8M AGST 1.5M PREVIOUSLY)
STRONG PROFIT GROWTH WILL PROPEL ITS SHARE PRICE UP TO NEARER ITS INTRINSIC FUNDAMENTAL VALUE.

SYMLIFE'S CURRENT SHARE PRICE AT 1.05 IS DEEPLY UNDERVALUED/UNDERPRICED AS INDICATED BY THE FOLLOWING COMPARITIVE PRICE TO BOOK RATIOS(P/B)

SHARE PRICE NTA P/B
SYMLIFE 1.05 2.12 0.49x
MALTON 1.55 1.65 0.94x
IWCITY 1.81 0.81 2.2x
ECOWLD 1.62 1.42 1.1x
WCT 2.27 2.19 1.0x
LBS 2.06 1.73 1.2x

THE NEXT BIG CATALYST (ITS SG LONG 400 ACRES REVALUATION AND DEVELOPMENT)

ITS BOOK VALUE (PER ANNUAL REPORT/ACCOUNTS) IS ONLY RM8 PSF

Future/upcoming launches

Tijani Signal Hill, Kota Kinabalu (est. GDV RM450mil)
10-acre JV development located in the prestigious Signal Hill area of Kota Kinabalu
Two towers of condominiums of various sizes and 12 units of 3-storey landed luxury villas.
Expect to be able to launch in 1H16. Phase 1 GDV RM150mil.
51% stake via Brilliant Armada Sdn Bhd.

Sunway (est. GDV RM400mil)
On a 2-acre land adjacent to the Sunway South Quay development.
About 600 mainly small unit apartments targeted for students, parents of students and investors due to its proximity to several established universities and medical centres.

Subang Airport Road, Subang (est. GDV RM200mil)
JV project arising from the purchase of 3.2-acre land from Kwasaland by the landowner and is part of the huge RRI land development.
Mixed development concept with retail and residential components that is expected to do well due to its visibility along Jalan Lapangan Terbang Subang.
51% stake via Vital Capacity Sdn Bhd.

Mont Kiara 2, Kuala Lumpur (est. GDV RM400mil)
On 2.2-acre of land located across Jalan Segambut from TWY@Mont Kiara.
Concept will be different from TWY@Mont Kiara but will continue to include innovative features that would differentiate its product in this mature location.

Section U10, Shah Alam (est. GDV RM300mil)
JV project located within a rapidly growing corridor along the Shah Alam-Batu Arang highway with notable developments such as Sunway Alam Suria, Cahaya SPK and Nusa Rhu in its immediate vicinity.
The 25-acre residential development will consist of 444 units of townhouses and terrace houses.
3 years development period.

51G, Kuala Lumpur (est. GDV RM360mil)
On 1-acre land at Persiaran Gurney.
Luxurious condominium project with a private car port in each of its 71 units and a 26-feet wide driveway on each floor which enables residents to drive into their units.
50% stake via 51G Development Sdn Bhd.

* * * * * * * * *

"Despite the challenges, through a combination of innovative products that created some excitement in an otherwise subdued market and competitive pricing, we recorded our highest ever sales of just over RM700 million for the financial year ended 31 March 2015 (FY2015). This has built a solid foundation of unbilled sales that will contribute positively to future earnings of the Group."
– Symphony Life 2015 Annual Report

*Based on my own assumptions/estimates.
**Based on my own assumptions/estimates.

Assuming full conversion of the warrants, I arrived at a fully diluted RNAV per share of RM4.34***. Based on this figure, Symlife shares (at RM0.755) are trading at a discount of 83% to its FD RNAV.

(***Updated 13 Sep 2015: lowered from RM4.75 after some tweaking – no surplus for properties not for development)

Note: For recently added properties, I used back the same net book values. Some of the properties could be under a subsidiary which is not wholly-owned, so Symlife's effective ownership of the properties could be less than 100% and if so should account for less in the RNAV. But most importantly, the Sg. Long land is definitely 100%-owned by Symlife. For the Sg. Long land, I should be using 400 acres instead of 420 acres (I don't know what price the 20 acres will be acquired for), but for the sake of convenience, I'm following the acreage as per annual report.

I also have not included some active developments which lands are not owned by Symlife. Including the DCFs from these projects would increase the RNAV. E.g., Star Residences was not included in the RNAV. This 50:50 JV project has a GDV of RM2.8bn and a 6-year development period. As a rough estimate, if we assume net margins of 20%, use a discount rate of 11%, the NPV would be about RM395mil. Symlife's 50% stake of this would then be worth RM197.5mil or RM0.47 per share (fully diluted).

What would be an appropriate discount to RNAV?

I believe Symlife should trade at a discount to RNAV similar to smaller cap property stocks that are more toward the affordable to mid-market segment. Property players in this segment are less affected by the current property market slowdown.

My rationale for this is that the Sg. Long development, once launched, will be more toward the mid-market segment; the development should also make up most of Symlife’s GDV in the future.

Given the location and target market of the Sg. Long development, there shouldn’t be concerns of oversupply or over competition, unlike regions such as Iskandar Malaysia now.

Market sentiment toward affordable to mid-market housing developers that don’t have heavy exposure to the Johor market seems to be relatively more favourable (in terms of discount to RNAV) than those that do.

As a benchmark, Hua Yang, with a market cap of about RM486mil, is currently trading at 48% discount to RNAV*. Hua Yang's dividend yields are close to 7% and its net gearing levels are ~0.6x. Matrix Concepts (~RM1.3bn market cap) is trading at 34% discount to its FD RNAV*. Matrix's DY is ~6%, while net gearing is relatively lower at ~0.1x. (*based on Kenanga Research's RNAV estimates). Both trade above book value.

Symlife has a market cap of ~RM230mil. Its net gearing is 0.4x, DY ~6.6%, and its stock trades at less than 0.4x P/BV currently.

It is also worth noting that while many developer’s high-end projects are experiencing poor take up rates, Symlife’s higher-end projects such as its TWY@Mont Kiara and Star Residences in the KLCC area have achieved good take-up rates of more than 80%.

In my view, for Symlife shares to trade at 50% discount or less to its RNAV would be fair and reasonable.

Source: PublicInvest Research non-rated report on SHL (dated 22 Jul 2014)

If we use the RM130 psf as guidance, Symlife’s 400-acre (17,424,000 sq ft) land could be worth RM2.27bn, or about RM7.30 per share.

In a July 2015 article by The Edge Property on Bandar Sungai Long (link to article), there was a mention that “the value of residential land in the township is between RM150 and RM300 psf now.”

Another way I would value the land is to use the NPV method.

As a rough estimate, if we evenly spread out the RM7.6bn GDV over a 10 year development period (RM760mil/year), assume net margins of 20% (net profit of RM152mil/year), use a WACC of 11%, we would get an NPV of RM895mil, which comes to about RM51 psf. Based on this, the land is worth RM2.89 per share.

Potential value of Symlife stock

Many of Symlife's properties have not been revalued for some time and hence are carried at low net book values (see Figure 4).

Figure 4: Properties owned by Symphony Life

Source: Company annual report

What could Symlife's RNAV be if we were to value the properties at current market prices?

For my own entertainment, I made some guesstimates to the values of the properties to see what RNAV Symlife could potentially have (see Figure 5). Note that these are just my own estimates and not the market prices. I feel my estimates are conservative, but actual market prices could be lower or higher.

Figure 5: Hypothetical revaluation of Symphony Life properties

The location looks about right judging from the quarry terrain (currently the land is being used for quarry operations, Symlife in FY12 paid about RM143mil to extend the lease of the land to 99 years and to convert the land status to make it ready for property development).

Potential value

Since the land is close to Bandar Sungai Long, which was developed by SHL Consolidated Bhd, land prices in that area could serve as a good indication to what Symlife's Sg. Long land is worth.

PublicInvest Research, in a non-rated report on SHL, indicated the market value/price of land in Bandar Sg. Long was RM130 per sq ft. (The report can be found here on bursamarketplace.com)

Figure 3: Extracts from PublicInvest Research report on SHL

RE-POSTING OF A 2015 REPORT (FOLLOWED BY A REVIEW)
Friday, 11 September 2015
Symphony Life - A deeper look into its deep value
SYMPHONY LIFE BHD
A deeper look into its deep value


Main highlights:
Based on my assumptions and rough estimates, fully diluted RNAV is RM4.34. Applying a conservative 50% discount, the stock has a fair value of RM2.17.
Symlife should start to progressively reflect its true value after FY16 in view of two positive catalysts in 2017-18.
Main catalyst will be the announcement of the Sg. Long land development's launch (slated for 2017/18). If valued at RM50 psf, the Sg. Long land is worth RM900mil (3.9x market cap). GDV for this development was previously estimated at RM8bn (>30x market cap).
The other catalyst will be a jump in profits (and as a result probably higher dividends) driven by its record high unbilled sales of over RM700mil (about 2.5x FY15 revenue). Upcoming/future launches of around RM2bn in GDV (excluding Sg. Long development and ongoing projects) to support earnings.
Despite the subdued property market, Symlife's high-end projects (first phase of Star Residences and TWY) achieved high take-up rates of more than 80%.


The delay of the Sungai Long development and management's guidance for lower sales in FY16 may come as a disappointment to some who follow Symphony Life (Symlife) closely.

But for some investors who are more forward looking, Symlife still remains an attractive property stock to be invested in.

After FYE Mar 2016, about 7 months from now, the stock could start to progressively reflect its true/intrinsic value, in view of the positive catalysts that's about to come in 2017-18.

The main catalyst would be the announcement of the Sg. Long development's launch (which should draw interest of institutional investors to the stock).

The other catalyst would be a jump in profits (and as a result, probably higher dividends) driven by unbilled sales of over RM700mil (the highest ever recorded by Symlife; ~2.5x FY15 revenue).

Much of this sales weren’t reflected in recent quarters and won’t be in the remaining ones of FY16 because Symlife’s recent launches were mostly high rise developments which construction works are now only at the foundation level.

As profits are recognized using the stage of completion method, the bulk of the unbilled sales will only be recognized at further stages of the developments' construction, from FY17 onwards.

Sg. Long development – the main catalyst

The Sg. Long development is now slated to be launched in 2017/2018. The land area for development has now been reduced to 400 acres after around 20 acres was acquired for the EKVE.

With less land, the previously estimated GDV of RM8bn should also be lower now. If we assume a proportional GDV to land area decrease, the GDV would be roughly 5% (20/420 acres) lower at RM7.6bn (but still over 30x Symlife's current market cap)

On the bright side, the EKVE cutting through the development could serve as a positive due to better accessibility/connectivity

Figure 1: Information on the Sg. Long land

Source: Symlife’s IMTN Programme Information Memorandum (dated 16 May 2013)

Location of the Sg. Long land

From the info memo (Figure 1), location details are:

To the south of the Sg. Long land:
- Bandar Mahkota Cheras
- Bandar Sungai Long
- Taman Cheras Vista
- Taman Vista
- Taman Desa Budiman

To the north of the Sg. Long land:
- Taman Bukit Sekawan
- Taman Sri Nanding
- Taman Cempaka
- Taman Perkasa
- Taman Dusun Nanding
- Kampung Sungai Serai

THE REVIEW AND UPDATING WITH THE CURRENT MARKET SCENARIOS WILL SHOW MANY POSITIVE CATALYSTS POINTING TO MUCH MORE MARKET VALUATION AND PRICE UPSIDES GOING FORWARD. THE RECENT PRICE BREAKOUT ABOVE 1.00 IS JUST THE BEGINNING OF ITS PRICE UPTREND. BACKED BY SOLIDLY IMPROVING FUNDAMENTALS

HI. JUST MANAGED TO RETRIEVE A VERY GOOD ANALYSIS ON SYMLIFE WITH ALL ITS POSITIVE DATA AND INFO.

WILL TRY TO REVIEW AND UPDATE IT WITH CURRENT FACTS AND NEWS TODAY DURING LUNCH BREAK OR ASAP.

ANOTHER IMPORTANT POSITIVE IS ITS PROFIT RECOVERY IS FIRMLY ON TRACK.

LATEST FY 2016 REGISTERED A 51% INCREASE Y-ON-Y (UP RM 198M)
THE PROFIT JUMP IN ITS RECENT 4Q WAS VERY IMPRESSIVE. (177M AGAINST LAST CORRESPONDING 100M I.E.HIGHER BY 77%)

AS CONFIRMED AFFIN BANK HAS NO EXPOSURE TO THE DEPRESSED O&G SECTOR.

THE COMING 1Q PROFIT WILL BE STRONGER AND THIS WILL PROPEL ITS SHARE PRICE UP WHEN IT ANNOUNCE ITS RESULTS BY THIS MONTH END

Minister: China’s capital control matter of concern for Malaysia

Second Finance Minister Johari Abdul Ghani says such measures could affect Malaysia’s international trade if investors pull out from China.
Free Malaysia Today

China’s capital controls behind Bandar Malaysia deal collapse
FMT Reporters
| May 7, 2017
Economist Hoo Kee Ping says China had committed to projects since 2015 without fully understanding its worsening financial conditions.
PETALING JAYA: China’s new measures to control flight of capital from its shores contributed to the recent move in Malaysia where the share sale agreement (SSA) over the Bandar Malaysia project was aborted.
Economist Hoo Kee Ping was reported by Channel News Asia (CNA) yesterday as saying that China refused to give permission for its China Railway Engineering Corporation (M) Sdn Bhd (CREC) to participate in the purchase of the project’s shares due to the stringent capital controls.
He said the project, which has an estimated cumulative gross development value of RM150 billion, was among those committed to by China without fully understanding the economic implications.
“All these projects China committed to from 2015 until now were committed without fully understanding China’s worsening financial conditions,” he was quoted as saying.
“(So now), Chinese projects, whether state owned enterprises or private, as long as they’re
------------------------------------------------------------------------------------------------------------------------
not strategic, they’re out. There must be a strategic meaning to China’s geopolitical
-----------------------------------------------------------------------------------------------------------------------
interests.”
-----------
The CNA report added that the Bandar Malaysia investment may no longer have strategic
===================================================================
importance for China.
================


Hoo was also quoted as saying that China may not have wanted to continue with the Bandar Malaysia deal as they believed they would not get the HSR project that Japan has a better chance over.

AGREED SYMLIFE SHARE PRICE UPTREND WILL STRENTHEN N EXCEED 1.00 SOON. BOOSTED BY REALISTICALLY HIGH EXPECTATIONS OF VERY STRONG 4Q PROFITS DERIVED FROM ITS HUGE UNBILLED SALES CLOSING TO RM2B SUPPORTED BY GOOD SALES GROM ITS ONGOING PROJECTS ALL LOCATED IN PRIME AREAS. ESPECIALLY ITS STAR RESIDENCES NEAR THE ICONIC PETRONAS TWIN TOWERS.
RECALLED A VERY GOOD N COMPREHENSIVE RESEARCH REPORT WHICH ANALYSED ITS FAIR VALUE PRICE TO BE ABOVE RM2.OO BASED ON FACTUAL DATA OF ITS DEEPLY UNDERVALUED ASSETS WHICH ARE CURRENTLY N PROGRESSIVELY UNLOCKED FOR ITS SHAREHOLDERS N TO BE REFLECTED IN ITS PRICE UPTREND.
WILL SHARE THIS GOOD REPORT AS SOON AS RETRIEVE IT (WITH MY ADDITIONAL COMMENTS)

TRYING LOOK KFOR SOME GOOD RESEARCH ON AFFIN
THERE WAS ONE WHICH GAVE ITS FAIR VALUE PRICE AT RM3.75.
WELL ITS PRICE WAS AT RM4.18 ABT 2 1/2 YEARS AGO. ALSO IT IS STILL THE CHEAPEST BANK STOCK LISTED IN BURSA BASED ON ITS LOW PRICE TO BOOK RATIO COMPARED TO ITS PEERS LIKE CIMB AMBANK RHB
AFFINS PROFIT RECOVERY FIRMLY IN PLACE N ITS SHARE PRICE SHOULD ALSO RECOVER

OBSERVED ITS PRICE ACTION LAST 2 WEEKS WERE DECIDELY MORE BULLISH N TRYING TO BREAK OUT ABOVE RM3.OO
WILL UPDATE N SHARE ONCE I HAD RETRIEVED THE RESEARCH PAPER

THERE WILL BE A FINAL DIVIDEND.

WATCH OUT FOR ITS NEXT DIVIDEND ANNOUNCEMENT DURING THE NEXT FEW WEEKS (AFTER TOMORROW BUT BEFORE ITS AGM DATE ON 30/5/17). REFER TO ITEM 10 OF ITS AGENDA.

ALL THESE YEARS THEY HAD PAID ITS FINAL DIVIDEND EVERY YEAR.

CAN REFER BACK TO PREVIOUS YEAR'S AGM AGENDA WHERE THE FINAL DIVIDEND WAS ALSO NOT LISTED IN ITS 2016 AGENDA BUT THE FINAL DIVIDEND WAS PAID.

THEY HAD JUST PAID ITS 2ND INTERIM DIVIDEND AND THE TREASURY SHARES WILL BE CREDITED TO YOUR CDS AC TOMORROW (28/4/17). HENCE WE CAN EXPECT IT TO ANNOUNCE ITS NEXT (FINAL) DIVIDEND AFTER TOMORROW AND BE APPROVED UNDER ITEM 10 OF ITS LATEST AGENDA
(SIMILIAR TIMELINE LIKE LAST YEAR)

AGM COMING MONDAY.

UPDATES (INDICATIONS ARE GROWING THAT THE GEO-POLITICAL TENSIONS ARE RECEDING WHILE THE ECONOMIC FUNDAMENTALS ARE IMPROVING)

White House: Trump won't draw 'red lines' for North Korea
As Trump warned North Korea, his 'armada' was headed toward Australia (no real intention for any confrontation)

Pence says US will work with Japan, allies to find peaceful North Korea solution(WILL SIGNIFICANTLY REDUCE WAR RISKS )
FRENCH ELECTION. FREXIT ? : UNLIKELY
CENTRIST & PRO-EU CANDIDATE MACRON IS STILL LEADING IN SURVEY POLLS BY 63%
SPEAKER AT RECENT KENANGA INVESTMENT SEMINAR OPINIONED THAT UNLIKE UK WHICH IS NOT BENEFITING MUCH ECONOMICALLY FROM EU, THE FRENCH IS DOING HUGE TRADES WITH ITS EU PARTNERS AND THE FRENCH VOTERS WISH TO RETAIN ITS HUGE ECONOMIC ADVANTAGES BY REMAINING A EU MEMBER. THE FRENCH ONLY AGAINST THE TOO LIBERAL IMMIGRATION POLICIES.

A CONTARIAN STRATEGY TO PROFIT FROM STOCK INVESTMENTS
-----------------------------------------------------------------------------------------------------

Mark Mobius: Here’s what investors need to ‘see through’ if they want to make money






Mark Mobius on global investment risks Tuesday, 18 Apr 2017 | 4:49 PM ET | 01:55

Investors who run the other way when they hear negative headlines are making a big mistake, according to Mark Mobius of Franklin Templeton.
"Situations like we see in North Korea, what we're seeing in the Middle East will be with us for quite some time. But that doesn't mean countries don't continue to grow," he said in a Tuesday interview on CNBC's "Trading Nation."
"We're going to see continued growth," and investors should "see through" negative headlines to the underlying fundamentals, said Mobius, executive chairman of Templeton emerging markets group.
"If you look at the price charts, in dollar terms, for a place like Brazil or India [that] from one time to another has bad headlines, the reality is that stock prices continue to go up in dollar terms, so we've got to keep an eye on those prices," he added.
His remarks come as Bank of America Merrill Lynch's fund manager survey showed that investors are becoming more optimistic about the emerging markets, which include China, India, Brazil and Mexico. Investors "aggressively" bought emerging market stocks in April, propelling allocations to five-year highs, according to the report.
Looking forward, investors ought not to be deterred by a rising interest rate environment in the U.S., according to Mobius.
When considering investing in emerging markets, people have been "so afraid of higher interest rates, not realizing that higher interest rates in the U.S. don't necessarily mean a down market; sometimes interest rates go up and the markets go up. And this has been happening with emerging markets; emerging markets are going gangbusters," Mobius commented Tuesday.

--------------------------------------------------

UPDATES (AS AT 20/4/17)

UPDATES (INDICATIONS ARE GROWING THAT THE GEO-POLITICAL TENSIONS ARE RECEDING WHILE THE ECONOMIC FUNDAMENTALS ARE IMPROVING)
White House: Trump won't draw 'red lines' for North Korea
As Trump warned North Korea, his 'armada' was headed toward Australia (no real intention for any confrontation)

Pence says US will work with Japan, allies to find peaceful North Korea solution(WILL SIGNIFICANTLY REDUCE WAR RISKS )

FRENCH ELECTION. FREXIT ? : UNLIKELY
-----------------------------------------
CENTRIST & PRO-EU CANDIDATE MACRON IS STILL LEADING IN SURVEY POLLS BY 63%
SPEAKER AT RECENT KENANGA INVESTMENT SEMINAR OPINIONED THAT UNLIKE UK WHICH IS NOT BENEFITING MUCH ECONOMICALLY FROM EU, THE FRENCH IS DOING HUGE TRADES WITH ITS EU PARTNERS AND THE FRENCH VOTERS WISH TO RETAIN ITS HUGE ECONOMIC ADVANTAGES BY REMAINING A EU MEMBER. THE FRENCH ONLY AGAINST THE TOO LIBERAL IMMIGRATION POLICIES.

A CONTRARIAN STRATEGY TO PROFIT FROM STOCK INVESTMENTS
------------------------------------------------------

Mark Mobius: Here’s what investors need to ‘see through’ if they want to make money






Mark Mobius on global investment risks Tuesday, 18 Apr 2017 | 4:49 PM ET | 01:55

Investors who run the other way when they hear negative headlines are making a big mistake, according to Mark Mobius of Franklin Templeton.
"Situations like we see in North Korea, what we're seeing in the Middle East will be with us for quite some time. But that doesn't mean countries don't continue to grow," he said in a Tuesday interview on CNBC's "Trading Nation."
"We're going to see continued growth," and investors should "see through" negative headlines to the underlying fundamentals, said Mobius, executive chairman of Templeton emerging markets group.
"If you look at the price charts, in dollar terms, for a place like Brazil or India [that] from one time to another has bad headlines, the reality is that stock prices continue to go up in dollar terms, so we've got to keep an eye on those prices," he added.
His remarks come as Bank of America Merrill Lynch's fund manager survey showed that investors are becoming more optimistic about the emerging markets, which include China, India, Brazil and Mexico. Investors "aggressively" bought emerging market stocks in April, propelling allocations to five-year highs, according to the report.
Looking forward, investors ought not to be deterred by a rising interest rate environment in the U.S., according to Mobius.
When considering investing in emerging markets, people have been "so afraid of higher interest rates, not realizing that higher interest rates in the U.S. don't necessarily mean a down market; sometimes interest rates go up and the markets go up. And this has been happening with emerging markets; emerging markets are going gangbusters," Mobius commented Tuesday.

Economists: Malaysia to benefit from China’s strong growth
FMT Reporters
| April 18, 2017
Growth of 6.9% in first quarter of 2017 reflects healthy demand in China which will likely translate into higher exports from Malaysia, says report.
KUALA LUMPUR: China’s economy grew faster than expected in the first quarter of 2017 – and this is good for Malaysia.
The 6.9% growth – the strongest since 2015 – was above the consensus estimate of 6.8%.
This is good for Malaysia as China is Malaysia’s largest trading partner.
Affin Hwang Investment Bank Bhd chief economist Alan Tan told The Edge Financial Daily that the strong gross domestic product (GDP) growth reflected a healthy domestic demand in China.
“A combination of better external and domestic demand would mean that Malaysia should benefit not just from China’s demands for manufactured goods but also for Malaysia’s commodity-related products,” he was quoted as saying.
Tan believed Malaysia could now perhaps possibly achieve the upper end of Bank Negara Malaysia’s forecast of 4.3% to 4.8% GDP growth

UPDATES (INDICATIONS ARE GROWING THAT THE GEO-POLITICAL TENSIONS ARE RECEDING WHILE THE ECONOMIC FUNDAMENTALS ARE IMPROVING)
====================================================================
White House: Trump won't draw 'red lines' for North Korea
Pence says US will work with Japan, allies to find peaceful North Korea solution
(WILL SIGNIFICANTLY REDUCE WAR RISKS )

Neal Kimberley
Why the gloom? ‘Dealmaker’ Trump pivots on China... and things are looking up
‘If the region as a whole does well, China is well-placed to benefit’
PUBLISHED : Tuesday, 18 April, 2017, 10:13am


Given the critical tone towards China that was evident in US President Donald Trump’s campaign rhetoric, it might have appeared a far-fetched notion that a few months into a Trump presidency China-US economic relations would still be on an even keel and the broader outlook for the Chinese economy seem relatively rosy. But such is the case.
The Florida summit between Trump and his Chinese counterpart Xi Jinping appears to have gone smoothly. Indeed only last week Trump, who had previously been very vocal about China’s policies towards the yuan, said China were “not currency manipulators”, a stance confirmed in an official report from the US Treasury on April 14.
All things considered, the outlook for China’s economy currently looks reasonably rosy

But in truth, based on the campaign rhetoric that dominated Trump’s successful race for the White House last year, who would honestly have bet on China-US trade relations still being amicable at this stage of Trump’s first term in office?
“I’m the best dealmaker there is,” said Trump in 2015, but he also said separately that “to be a great dealmaker, you have to be flexible”. Perhaps that flexibility is now guiding his attitude to China.
All things considered, the outlook for China’s economy currently looks reasonably rosy.


Why Trump's next big policy reversal could be on the TPP
Nyshka Chandran | @nyshkac

Trump still has time to change his mind on TPP, King warned, noting that the treaty text remains valid until February 2018.
(WILL BE POSITIVE FOR WORLD AND ASIAN ECONOMIC GROWTH)

IMPORTANT GEO-POLITICAL EVENTS & MARKET RISKS
=========================================================
North Korea Defies Trump With Missile Test
by
Kanga Kong
April 16, 2017, 7:09 AM GMT+8 April 16, 2017, 11:10 AM GMT+8
• North Korean missile explodes in test launch day after Kim Jong-un showcases new ballistic arsenal
• Hostilities in the region surge US President Donald Trump sends aircraft carrier-led strike group to the Korean peninsula
• PUBLISHED : Sunday, 16 April, 2017, 8:03am

CRITICAL TIMELINE FOR MORE MISSILE OR NUCLEAR TESTS
----------------------------------------------------------
POSSIBLY WITHIN THE NEXT 10 DAYS TO 25TH APRIL.
MOST SIGNIFICANT DATE IS 25/4/2017 BEING THE ANNIVERSARY OF THE FOUNDING OF THE PEOPLES ARMY.

US, allies weigh options after North Korea's missile test: Trump adviser
"What (is) particularly difficult about - about dealing with this regime, is that it is unpredictable," he said.


OTHER IMPORTANT GEO-POLITICAL EVENTS AND DATES
----------------------------------------------------

USA DEBT CEILING EXPIRED ON 15/3/2017.
--------------------------------------
UNLESS EXTENDED US GOVT TO RUN OUT OF CASH THUS FACING GOVT SHUT DOWN IN A NEXT FEW MONTHS TIME.

FRENCH ELECTIONS ON 23/4/17 AND 3/5/17
-----------------------------------------
2 LEADING FAR RIGHT CANDIDATES WOWED TO WITHDRAW FROM EU AND EURO
IF THEY WIN. (CAN HAPPEN AS SEEN IN THE UNLIKELY WIN BY PRESIDENT TRUMP AND THE BREXIT)
A FRENCH EXIT OR FREXIT WILL BE FAR MORE DISASTROUS TO THE WORLD ECONOMY AND THE WORLD’S STOCK MARKETS
Le Pen victory could be five times as dangerous as Greece's financial meltdown: UBS
Sam Meredith | @smeredith19
Tuesday, 28 Mar 2017 | 9:19 AM ETCNBC.com






Sylvain Lefevre | Getty Images
Europe could be on track to encounter a shock wave up to five times as turbulent as the start of the euro zone debt crisis if French presidential candidate Marine Le Pen was able to secure victory in May, according to a team of UBS analysts.
Strategists at the Swiss banking giant stressed the prominence of the anti-immigration and anti-European Union National Front leader meant France's fast approaching general election would be the most serious political risk event in the region this year.
France exiting the euro would be the largest sovereign default in history with serious contagion effects
Daniel Lacalle, CIO of Tressis Gestion
Wednesday, 22 Feb 2017 | 1:06 AM ETCNBC.com






Alain Jocard | AFP | GettyImages
A few days ago, David Rachline of the far-right National Front party in France said that "the debt of France is about 2 trillion euros ($2.1 trillion), about 1.7 (trillion euros) are issued under French law, which means that it can be re-denominated."

The economic program of the National Front specifically calls for the exit of the euro and the creation of a new currency, the French franc, which would be "closely" linked to the euro while allowing the government to undertake "competitive devaluations" making the transition in an "orderly way".

There is only one problem. It does not work. There is no "orderly exit" from the euro. It is an oxymoron.

This would be the largest credit event in history and would create a massive contagion effect throughout the euro zone. The euro, obviously, would suffer from the break-up risk, so the fallacy of the "closely linked" second currency is simply a joke. Both would collapse in tandem.
(NEED TO BE AWARE AND ALERT TO SUCH GEO-POLITICAL EVENTS LOOMING IN THE HORIZON )
HighlightsPerform research on stocks before trading. Check out the Price Target page.
0

SELLING PRESSURE FROM EPF STILL EVIDENT FROM THEIR DISCLOSURES.

THIS MAY BE AGGRAVATED BY THE CURRENT GEO-POLITICAL EVENTS WHICH WILL CONTINUE TO HOG THE NEWS HEADLINES FOR THE NEXT FEW WEEKS :-

IMPORTANT GEO-POLITICAL EVENTS & MARKET RISKS
===============================================
North Korea Defies Trump With Missile Test
by
Kanga Kong
April 16, 2017, 7:09 AM GMT+8 April 16, 2017, 11:10 AM GMT+8
• North Korean missile explodes in test launch day after Kim Jong-un showcases new ballistic arsenal
• Hostilities in the region surge US President Donald Trump sends aircraft carrier-led strike group to the Korean peninsula
• PUBLISHED : Sunday, 16 April, 2017, 8:03am

CRITICAL TIMELINE FOR MORE MISSILE OR NUCLEAR TESTS
------------------------------------------------------------------------------------------
POSSIBLY WITHIN THE NEXT 10 DAYS TO 25TH APRIL.

MOST SIGNIFICANT DATE IS 25/4/2017 BEING THE ANNIVERSARY OF THE FOUNDING OF
-------------------------------------------------------
THE PEOPLES ARMY.


OTHER IMPORTANT GEO-POLITICAL EVENTS AND DATES
------------------------------------------------------------------------------------

USA DEBT CEILING EXPIRED ON 15/3/2017.UNLESS EXTENDED US GOVT TO RUN OUT OF CASH THUS FACING GOVT SHUT DOWN IN A NEXT FEW MONTHS TIME.

FRENCH ELECTIONS ON 23/4/17 AND 3/5/17
------------------------------------------------------------------------
2 LEADING FAR RIGHT CANDIDATES WOWED TO WITHDRAW FROM EU AND EURO
IF THEY WIN. (CAN HAPPEN AS SEEN IN THE UNLIKELY WIN BY PRESIDENT TRUMP AND THE BREXIT)
A FRENCH EXIT OR FREXIT WILL BE FAR MORE DISASTROUS TO THE WORLD ECONOMY AND THE WORLD’S STOCK MARKETS
Le Pen victory could be five times as dangerous as Greece's financial meltdown: UBS
Sam Meredith | @smeredith19
Tuesday, 28 Mar 2017 | 9:19 AM ETCNBC.com



Sylvain Lefevre | Getty Images
Europe could be on track to encounter a shock wave up to five times as turbulent as the start of the euro zone debt crisis if French presidential candidate Marine Le Pen was able to secure victory in May, according to a team of UBS analysts.
Strategists at the Swiss banking giant stressed the prominence of the anti-immigration and anti-European Union National Front leader meant France's fast approaching general election would be the most serious political risk event in the region this year.
France exiting the euro would be the largest sovereign default in history with serious contagion effects
Daniel Lacalle, CIO of Tressis Gestion
Wednesday, 22 Feb 2017 | 1:06 AM ETCNBC.com






Alain Jocard | AFP | GettyImages
A few days ago, David Rachline of the far-right National Front party in France said that "the debt of France is about 2 trillion euros ($2.1 trillion), about 1.7 (trillion euros) are issued under French law, which means that it can be re-denominated."

The economic program of the National Front specifically calls for the exit of the euro and the creation of a new currency, the French franc, which would be "closely" linked to the euro while allowing the government to undertake "competitive devaluations" making the transition in an "orderly way".

There is only one problem. It does not work. There is no "orderly exit" from the euro. It is an oxymoron.

This would be the largest credit event in history and would create a massive contagion effect throughout the euro zone. The euro, obviously, would suffer from the break-up risk, so the fallacy of the "closely linked" second currency is simply a joke. Both would collapse in tandem.
(NEED TO BE AWARE AND ALERT TO SUCH GEO-POLITICAL EVENTS LOOMING IN THE HORIZON )
HighlightsPerform research on stocks before trading. Check out the Price Target page.
0

IMPORTANT GEO-POLITICAL EVENTS & MARKET RISKS
==============================================
North Korea Defies Trump With Missile Test
by
Kanga Kong
April 16, 2017, 7:09 AM GMT+8 April 16, 2017, 11:10 AM GMT+8
• North Korean missile explodes in test launch day after Kim Jong-un showcases new ballistic arsenal
• Hostilities in the region surge US President Donald Trump sends aircraft carrier-led strike group to the Korean peninsula
• PUBLISHED : Sunday, 16 April, 2017, 8:03am

CRITICAL TIMELINE FOR MORE MISSILE OR NUCLEAR TESTS
------------------------------------------------------------------------------------------
POSSIBLY WITHIN THE NEXT 10 DAYS TO 25TH APRIL.
MOST SIGNIFICANT DATE IS 25/4/2017 BEING THE ANNIVERSARY OF THE FOUNDING OF THE PEOPLES ARMY.

OTHER IMPORTANT GEO-POLITICAL EVENTS AND DATES
=================================================
USA DEBT CEILING EXPIRED ON 15/3/2017.
----------------------------------------------------------------
UNLESS EXTENDED US GOVT TO RUN OUT OF CASH THUS FACING GOVT SHUT DOWN IN A NEXT FEW MONTHS TIME.

FRENCH ELECTIONS ON 23/4/17 AND 3/5/17
----------------------------------------------------------------
2 LEADING FAR RIGHT CANDIDATES WOWED TO WITHDRAW FROM EU AND EURO
IF THEY WIN. (CAN HAPPEN AS SEEN IN THE UNLIKELY WIN BY PRESIDENT TRUMP AND THE BREXIT)
A FRENCH EXIT OR FREXIT WILL BE FAR MORE DISASTROUS TO THE WORLD ECONOMY AND THE WORLD’S STOCK MARKETS
Le Pen victory could be five times as dangerous as Greece's financial meltdown: UBS
Sam Meredith | @smeredith19
Tuesday, 28 Mar 2017 | 9:19 AM ETCNBC.



Europe could be on track to encounter a shock wave up to five times as turbulent as the start of the euro zone debt crisis if French presidential candidate Marine Le Pen was able to secure victory in May, according to a team of UBS analysts.
Strategists at the Swiss banking giant stressed the prominence of the anti-immigration and anti-European Union National Front leader meant France's fast approaching general election would be the most serious political risk event in the region this year.
France exiting the euro would be the largest sovereign default in history with serious contagion effects
Daniel Lacalle, CIO of Tressis Gestion
Wednesday, 22 Feb 2017 | 1:06 AM ETCNBC.com




Alain Jocard | AFP | GettyImages
A few days ago, David Rachline of the far-right National Front party in France said that "the debt of France is about 2 trillion euros ($2.1 trillion), about 1.7 (trillion euros) are issued under French law, which means that it can be re-denominated."

The economic program of the National Front specifically calls for the exit of the euro and the creation of a new currency, the French franc, which would be "closely" linked to the euro while allowing the government to undertake "competitive devaluations" making the transition in an "orderly way".

There is only one problem. It does not work. There is no "orderly exit" from the euro. It is an oxymoron.

This would be the largest credit event in history and would create a massive contagion effect throughout the euro zone. The euro, obviously, would suffer from the break-up risk, so the fallacy of the "closely linked" second currency is simply a joke. Both would collapse in tandem.
(NEED TO BE AWARE AND ALERT TO SUCH GEO-POLITICAL EVENTS LOOMING IN THE HORIZON )












O

LOOKING FORWARD FOR THE ANNOUNCEMENTS ON THE DATE FOR THE COMING AGM FOR FYE 31/12/2016 AND ITS DECLARATION OF ITS FINAL DIVIDEND EXPECTED IN THE NEXT 2 WEEKS.
HOPE TO GET A REASONABLY GOOD FINAL DIVIDEND

MICHAEL. OK. THANKS. ANYWAY I THINK TROP IS DUE FOR ITS PRICE UPTREND

AFFIN SHARE PRICE CURRENTLY AT 2.88 IS STILL DEEPLY UNDERVALUED AND UNDERPRICED WITH ITS PRICE TO BOOK (P/B) RATIO AT ONLY 0.64x (against its Peers' averaging 1.17x). JUST BY AFFIN'S MOVING ITS P/B TO 0.72x will see its price GOING UP TO RM3.20.

CATALYSTS TO ACHIEVE THIS WILL BE FOREIGN FUNDS' CURRENT CALLS TO OVERWEIGHT MALAYSIAN BANKING SECTOR, AND AFFIN'S CONTINUING EARNINGS RECOVERY AS ALREADY SEEN IN ITS FULL YEAR'S PROFITS. INCREASED BY RM198M TO RM580M OR UP 52% Y/Y.

UOB BANK'S CALL BUY ON TROPICANA. WHERE CAN WE FIND IT? OR CAN SOME GOOD GUY REPRODUCE AND SHARE IT HERE? TQ

BASED ON ITS RELATIVELY ATTRACTIVE PRICE TO BOOK MULTIPLES OF ONLY 0.64x (AGAINST ITS PEERS IN THE BANKING SECTOR REACHING 1.17x) THERE WAS A CALL BUY ON AFFIN AT RM2.20 JUST 6 MONTHS AGO)

A VERY SMART GUY RESPONDED AND HE SOLD ALL HIS OTHER SHARES TO SWITCH ALL TO AFFIN. NOW HE HAD EMERGED A SOLID WINNER. HE WILL HOLD HIS AFFIN TO RIDE ON ITS UPTREND TO AT LEAST RM3.20 IN THE NEAR TERM , REAPING HIS DIVIDEND REWARD OF 4.5 SEN FIRST. HIS BIGGER REWARD WILL COME WHEN AFFIN CONTINUES ITS STRONG SEQUENTIAL QUARTERLY PROFITS INCREASES .

AS AFFIN'S EARNING RECOVERIES GAIN MOMEMTUM AND LEADING TO HIGHER DIVIDENDS, AFFIN'S SHARE PRICE WILL CONTINUE ITS UPSWING.

REMEMBER AFFIN'S SHARE PRICE WAS ABOVE RM4.00 IN 2013 AND IT PAID 15 SEN DIVIDEND SEACH YEAR DURING 2012 AND 2013

SHOULD HAVE REACHED 2B ALREADY. WATCH FOR ITS UNBILLED SALES WHEN IT ANNOUNCE ITS RESULTS NEXT MONTH

4Q BUSINESS JUST COMPLETED ON 31/3/17. INDICATIONS RE VERY POSITIVE. LIKELY BIG JUMP IN PROFITS FOR ITS 4Q AND ITS FULL YEAR SUPPORTED BY RM2B UNBILLED SALES. WITH RISING PROFITS WE CAN EXPECT A GOOD DIVIDEND TO BE GIVEN WHEN ITS RESULTS ARE ANNOUNCED NEXT MONTH.
SYMLIFE IS STILL DEEPLY UNDERVALUED /UNDERPRICED.
WITH ITS NTA AT RM2.12 (STILL CONSERVATIVE AS ITS PRIZED SG LONG LANDBANK IS STILL PEGGED AT ITS BOOK VALUE OF RM8 PSF (AGAINST AT LEAST RM30 PSF AND EVEN MORE FOR ITS COMMERCIAL PORTIONS) ITS PRICE TO BOOK RATIO (P/B) IS ONLY 0.42x (0.885/2.12)
(COMPARED TO P/B OF 1.25x for sp setia (3.54/2.83)
1.42X for ECOWOLD (1.52/1.42)

VALUE CREATION TO BE REFLECTED BY RISING SHARE PRICE OF SYMLIFE CAN BE ACHIEVED BECAUSE OF IT CURRENT ROBUST BUSINESS GROWTH, INCREASING PROFITS AND EXPECTED RISING DIVIDENDS

WITH THE HIGH SUCCESSFUL SALES OF ALL ITS RESIDENTIAL UNITS, ITS 5 BLOCKS OF RETAIL SPACE WILL ALSO BE SUCCESSFULLY TAKEN UP BY LEADING INTERNATIONAL BRAND NAMES SINCE ITS LOCATION IS IN THE POPULAR ICONIC PETRONAS TWIN TOWERS AREA

STAR RESIDENCES NEAR ICONIC PETRONAS TWIN TOWERS ARE IN HIGH DEMAND.
TOWER 1 (557 UNITS PRICED AT RM1500 PSF IN 2013) AND TOWER 2 (485 UNITS PRICED AT RM1800 PSF IN 2015) HAD BEEN ALMOST FULLY SOLD OUT.
TOWER 3 >400 UNITS PRICED AT RM2200 PSF ) HAD 50% SOLD ENBLOC TO A LEADING APARTMENT SERVICE PROVIDER IN ADVANCE OF ITS OFFICIAL LAUNCHING THIS MONTH.
HIGHLY SUCCESSFUL SALES AND WITH ITS BIG MARGINS (COST PSF OF RM500 PSF) SYMLIFE'S 4Q PROFITS AS AT 31/3/17 WILL BE VERY GOOD.

THIS WILL BE IN ADDITION TO REPORTED GOOD SALES FOR ITS WELL LOCATED OTHER PROJECTS IN MONT KIARA, SUNWAY, SHAH ALAM (UNION SUITES).

WE SHOULD BE GETTING A GOOD DIVIDEND WHEN ITS 4Q/FULL YEAR RESULTS ARE ANNOUNCED NEXT MONTH.

DIVIDEND PAYMENTS ARE QUITE FAST.
1ST INTERIM D EX DATE 31/1/17
2ND INTERIM D EX DATE 10/4/17
FINAL D (LIKELY DURING NEXT MONTH OF MAY)

BASED ON THE VERY SUCCESSFUL SALES OF STAR RESIDENCES (OPPOSITE ICONIC PETRONAS TWIN TOWERS AND WITH ITS HIGH MARGINS, SYMLIFE'S 4Q PROFITS WILL BE VERY GOOD. THIS MEANS WE CAN EXPECT A DIVIDEND OF 5 TO 6 SEN

AGM AND FINAL CASH DIVIDEND ANNOUNCEMENT LIKELY LATER PART OF THIS MONTH TO MAY. USUAL TIMELINE

NEXT CORPORATE ACTIONS.

SETTING DATE FOR AGM TO APPROVE RESULTS FOR FYE 31/12/2016 AND DECLARATION OF FINAL CASH DIVIDEND. BEST TO GET ANOTHER 4 TO 5 SEN TO TOP UP A GOOD YEAR PERFORMANCE.

OTHER POSITIVE CATALYSTS INCLUDE ANNOUNCEMENTS OF ITS ICONIC PROJECT IN JLN BUKIT BINTANG' GOLDEN TOURIST SHOPPING AREA PLUS PROGRESS IN ITS SALE OF JOHORE LAND PLUS ANOTHER IMPROVED 1Q 2017 PROFITS

1st Price Target RM3.20 coming.

MOST UNDERVALUED AND UNDERPRICED BANK SHARE IN BURSA.

ACTIVE CATALYSTS FOR VALUE EMERGING AND PRICE UPTREND GAINING MOMENTUM WITH BIG PROFIT JUMPS IN COMING QUARTER RESULTS.
RISING DIVIDENDS BASED ON INCREASING PROFITS

PROBABLY THE 50% PAT DIVIDEND POLICY WAS MEANT TO BE IMPLEMENTED IN THE NEXT FINANCIAL YEAR. I HOPE SO.
ANYWAY AFFIN HAD PAID 15 SEN DIVIDENDS IN 2012 AND 2013. AND ITS SHARE PRICE WAS 4.13 HIGH IN 2013.
AFFIN'S 1Q RESULTS AND PROFITS INCREASING BY RM198M OR 52% Y-O-Y WAS A COMMENDABLE ACHIEVEMENT. INVESTMENT BANKS RECENTLY MET UP WITH ITS MANAGEMENT TO UPDATE THE CORPORATE PLANS AND THEIR REPORTS WERE VERY POSITIVE IN THEIR FINDINGS THAT THE BANKS INTERNAL REORGANISATION PLANS AND ITS AFFINITY PROGRAMMES TO FOCUS ON MORE FEE BASED INCOMES AND TO RAISE OPERATIONS EFFICIENCY /PRODUCTIVITY ARE PROGRESSING WELL. THESE WILL IMPROVE ITS RESULTS IN THE SUBSEQUENT QUARTERS .

I THINK THEY DESERVE OUR SUPPORT FOR THE GOOD JOB DONE LAST YEAR AND THEIR CONTINUING EFFORTS TO REGAIN ITS FORMER GLORY DAYS OF HIGH PROFITS AND DIVIDENDS

REGARDING SELLING BY EPF. THEY MAY BE JUST PARING DOWN ITS STAKES TO A CERTAIN STRATEGIC LEVEL. ONCE THIS IS REACHED THEIR SELLING WILL CEASE. THEN AFFIN'S SHARE PRICE WILL CLIMB UP FASTER. EPF MAY ALSO DECIDE TO SUSPEND ITS SALES NOW IN RESPONSE TO AFFIN'S FINAL CASH DIVIDEND OF 4.5 SEN SET TO GO EX IN 1.5 MONTHS TIME

DURING BANK MERGERS OR TAKE OVERS, THE PRICE TO BOOK RATIO IS ONE OF THE MOST IMPORTANT FACTOS TO CONSIDER WHEN COMPUTING THE RESPECTIVE VALUES OR PRICE OF THE BANK'S SHARES. HENCE ANY OTHER BANK WHICH WANT TO TAKE OVER OR MERGE WITH AFFIN BANK WILL HAVE TO VALUE AFFIN BANK'S VALUE AT A P/B RATIO MUCH HIGHER AND CLOSER TO THE BANKING SECTOR'S 1.17x. I.E. PAY MUCH MORE THAN RM2.86 FOR AFFIN'S SHARES. IF AT 0.85x THE PURCHASING BANK WILL HAVE TO VALUE AND PAY RM3.80 FOR AFFIN

ONE OF THE MOST UNIVERSALLY ACCEPTED PRINCIPLE AND FINANCIAL YARDSTICK ADOPTED TO EVALUATE THE FUNDAMENTAL VALUATION OF COMMERCIAL BANK SHARES IS THEIR PRICE TO BOOK (P/B) RATIO.

AFFIN'S SHARE PRICE IS : 2.86
AFFIN'S BOOK VALUE OR NTA 4.47
(AUDITED NET TANGIBLE ASSET)
AFFIN'S P/B IS THEREFORE(2.86/4/47) 0.639x (much lower than the Banking Sector's 1.17x)

(AND IS HENCE DEEPLY UNDERVALUED AND UNDERPRICED)

CATALYSTS TO UNLOCK ITS UNDERVALUED ASSETS AND POTENTIAL INCLUDE :-
==================================================================

1) ACCELERATING AND STRONGER EARNINGS RECOVERIES.
ITS YEAR ON YEAR INCREASE IN PROFITS BY RM198M OR UP 52% IS COMMENDABLE..
WE ARE LOOKING TO CONTINUING BETTER PROFITS IN THE COMING QUARTERS.

2) INSTITUTIONAL FUNDS (INCLUDING FOREIGN FUNDS AND LOCAL FUNDS LIKE KWAP AND BANKS' UNIT TRUSTS/WEALTH MANAGEMENTS FUNDS) INCREASING THEIR INVESTMENTS OF AFFIN SHARES..

IT IS NOTE WORTHY THAT FUND MANAGERS ARE NOW CALLING FOR MORE EXPOSURES TO BUILD UP THEIR STOCK PORTFOLIOS IN BURSA EQUITIES.

THERE ARE NOW CALLS TO OVERWEIGHT MALAYSIAN BANKING SHARES

FY2016'S NET PROFIT AT RM580M REGISTERED AN INCREASE OF RM198M OR 52% HIGHER THAN 2015'S. A STRONG PROFIT GROWTH.

INDICATIONS ARE THAT ITS COMING 1Q PROFITS ENDING 31/3/17 WILL CONTINUE TO BE GOOD

ITS ALWAYS SAFER AND BETTER TO INVEST YOUR HARD EARNED MONEY IN FUNDAMENTALLY SOUND AND STILL UNDERVALUES SHARES LIKE AFFIN BANK.
LOW DOWNSIDE RISKS BUT HUGE UPSIDE POTENTIAL. MAY TAKE A GRADUAL UPTREND
PATTERN BUT HAS THE ABILITY TO GO UP STEADILY.

THERE WAS CALL TO BUY AFFIN AT 2.20 SOME MONTHS BACK BASED ON AN ANALYSIS OF ITS GOOD FUNDAMENTALS.

ONE GUY WROTE HE HAD CUT LOSS ON ALL HIS OTHER STOCKS AND RE-INVEST ALL HIS SALES PROCEEDS INTO AFFIN. SAID HE WILL EXIT THE STOCK MART AND JUST WAIT FOR AFFIN'S VALUE TO EMERGE AND RECOUP HIS LOSSES AND BECOME A WINNER. NOW AT 2.87 AND WITH ITS ABILITY TO SCALE HIGHER, I THINK HE HAS BEEN PROVEN WISE AND SKILLFUL

INSTITUTIONAL INVESTORS, INCLUDING FOREIGN FUNDS, AS WELL AS INDIVIDUAL
VALUE INVESTORS, WILL ALWAYS ON THE LOOK OUT FOR FUNDAMENTALLY SOUND STOCKS WITH GOOD BUSINESS PROSPECTS. ONCE THEY RECOGNISE AFFIN'S VALUE AND START AGGRESSIVE ACCUMULATION THEN U CAN SEE A STRONG PRICE UPTREND.

AFFIN'S SHARE PRICE AT 2.86 MEANS ITS PRICE TO BOOK (2.86/4.47) IS ONLY 0.64x
WHICH IS EXCESSIVELY DISCOUNTED AND UNJUSTIFIED (compared to the market average of 1.17x)

AFFIN'S PRICE SHOULD BE MORE FAIRLY PRICED AS :

AT P/B OF 0.72x = 3.22

at P/B OF 0.85x = 3.80

OTHER NOTEWORTHY INDICATORS ON AFFIN INCLUDE :-

IT'S SHARE PRICE WAS ABOVE RM4.00 DURING 2013

IT HAD PAID 15 SEN DIVIDEND IN 2012 AND 2013

PROSPECTS FOR AFFIN TO REGAIN ITS FORMER GLORY ARE BRIGHT.

THE GROUND WORK HAS BEEN LAID.

IT'S 1Q RESULTS/PROFITS HAD REGISTERED STRONG RECOVERY

ACTUALLY THE TOTAL DIVIDEND IS 7.5 SEN (AS IT HAD PAID 3 SEN INTERIM D )

ALSO I BELIEVE FUTURE DIVIDENDS WILL BE INCREASED AS ITS EARNINGS RECOVERY GATHERS UPWARD MOMENTUM. MY CONFIDENCE IN AFFIN'S PROFITS GROWTH IS BASED ON ITS IMPROVEMENTS IN ITS BUSINESS OPERATIONS ESPECIALLY IN ITS ISLAMIC BANKING AND INSURANCE DIVISIONS.

AFFIN'S CURRENT BUSINESS TRANSFORMATION/INTERNAL ORGANISATION AS WELL AS ITS AFFINITY PROGRAMMES WILL ENSURE BETTER BUSINESS GROWTH.

IT IS SIGNIFICANT TO NOTE THAT AFFIN'S SHARE PRICE IS VERY MUCH UNDERVALUED.

ONE OF THE RATIOS USED TO MEASURE THE WORTH OF BANKING SHARES IS THEIR RESPECTIVE PRICE TO BOOK (P/B) CURRENTLY AVERAGING 1.17x . AFFIN'S P/B OF 6.4x MEANS IT IS NOW THE CHEAPEST PRICED BANK STOCK IN BURSA. AFFIN'S SHARE IS THEREFORE THE MOST UNDERVALUED AND WITH ITS STRONG EARNINGS RECOVERY THE PROSPECTS ARE GOOD FOR ITS SHARE PRICE TO INCREASE ESPECIALLY SINCE FOREIGN FUNDS ARE FLOWING BACK INTO BURSA AND THERE ARE CALLS TO OVERWEIGHT OUR BANKING SECTOR.

COMPARITIVE P/Bs ARE GIVEN HERE TO FURTHER ILLUSTRATE MY POINT THAT AFFIN'S SHARE PRICE IS UNDERVALUED AND SHOULD MOVE HIGHER ON THE BACK OF ITS EARNINGS RECOVERY :-

AFFIN : 0.64x

CIMB : 1.11x

RHB : 1.00x

BANK ISLAM: 1.70x

ANOTHER BLOG RECENTLY ALSO SPOT LIGHTED
ON NOTION HIGHLIGHTING ITS EARNINGS
RECOVERY PLUS ITS TECH PRODUCTS HAS
POTENTIAL TO BECOME A TAKEOVER
TARGET N INDICATED ITS PRICE TO GO UP
TO RM2 TO RM3 SHOULD SUCH TAKEOVER
MATERIALISE. SAID NOTIONS TECH SUITABLE
FOR DRIVERLESS MOTOR VEHICLES. THIS
TECHNOLOGY IS ALSO IN VOGUE IN THE
ADVANCED ECONOMIES LIKE USA N EU.

FACTUAL DATA AS ANNOUNCED TO BURSA IS INDISPUTABLE

ITS STRONG EARNINGS RECOVERY PER ITS 1Q RESULTS N
PROFITS ARE FACTS.
KENANGA INVESTMENT BANK RESEARCH GAVE GOOD
ANALYSIS WHY TECH SECTOR IS NOW GOOD TO INVEST
IN. IT SELECTED NOTION VTEC AS A OUTPERFORMER
WITH TARGET PRICE 1.62 BASED ON SOUND VALID
REASONS