Semiconductor rally is likely to continue

Today

Kesm + 0.59%
Vitrox +4.73%
Inari + 1.58%
Pentamaster + 4.42%
Unisem + 0/73%
MPi + 2.62%
MMSV + 0.67%
Elsoft + 2.36%

Malaysia's January factory output seen surging 7.1% y/y | http://www.klsescreener.com/v2/news/view/352411

Oil slips as higher US output looms despite dip in drilling | http://www.klsescreener.com/v2/news/view/352425

Oil slips as higher US output looms despite dip in drilling | http://www.klsescreener.com/v2/news/view/352425

Nasdaq 100 futures are up. Semiconductor rally will continue.

https://www.investing.com/indices/nq-100-futures

Beggars in JB found to be earning staggering RM10,000 monthly

New Straits Times11 March 2018

On Monday the stock price is likely to hit RM 21.00.

业绩点火股价飙80仙　科仪展望好坏参半 http://www.orientaldaily.com.my/s/234621

车半导体需求增．KESM潜在派高息 http://www.sinchew.com.my/node/1734655/车半导体需求增．kesm潜在派高息

Chip stocks...

Outperformers
GLOBETRONICS's net profit increased 293.26.% YoY
KESM' s net profit increased 12.05% YoY.
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Average performers
Vitrox’s net profit increased 9.18% YoY.
Inari’s net profit increased 8.83% YoY.
MMSV’s net profit increased 7.97% YoY.
Pentamaster’s net profit increased 4.60% YoY
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Underperformers
MPI’s net profit decreased 25.06%.
Unisem’s net profit decreased 37.62%.

Outperformers ...

GLOBETRONICS's net profit increased 293.26.% YoY
KESM' s net profit increased 12.05% YoY.
-----------------------------------------------------------------------
Average performers
Vitrox’s net profit increased 9.18% YoY.
Inari’s net profit increased 8.83% YoY.
MMSV’s net profit increased 7.97% YoY.
Pentamaster’s net profit increased 4.60% YoY
-----------------------------------------------------------------------
Underperformers
MPI’s net profit decreased 25.06%.
Unisem’s net profit decreased 37.62%.

Sumsung is very bullish today.

AmInvestment Bank Research said
“But we have protection measures from the Government so it should be okay (for companies locally). I believe that South Korea and Canada would experience the most impact from Trump’s announcement. But China’s exports to the United States is also not that high,” he said.

“Steel stocks falling is an overreaction to the news and I don’t foresee much of an impact. If demand does not pick up, then we might see steel prices going down but the demand outlook so far remains good,” he added.

AmInvestment Bank Research said
“But we have protection measures from the Government so it should be okay (for companies locally). I believe that South Korea and Canada would experience the most impact from Trump’s announcement. But China’s exports to the United States is also not that high,” he said.

“Steel stocks falling is an overreaction to the news and I don’t foresee much of an impact. If demand does not pick up, then we might see steel prices going down but the demand outlook so far remains good,” he added.

“Trump’s action to use Section 232 of the Trade Expansion Act of 1962 in view of national security reasons was totally uncalled for because currently, those high-end steel products for automotive, aeroplane and transportation industries are mostly imported,” Soh added.

“Trump’s action to use Section 232 of the Trade Expansion Act of 1962 in view of national security reasons was totally uncalled for because currently, those high-end steel products for automotive, aeroplane and transportation industries are mostly imported,” Soh added.

According to Malaysian Iron and Steel Industry Federation president Datuk Soh Thian Lai (pic), Trump’s trade actions’ actual potential financial effects on local steel players are limited.

“The impact is not severe because Malaysia only exported 96,000 tonnes to the United States out of 34 million tonnes which it imported (in 2017). Malaysia’s imports from the United States only took up 0.28%, and Malaysia mainly exported flat products to the United States,” he told StarBiz.

According to Malaysian Iron and Steel Industry Federation president Datuk Soh Thian Lai (pic), Trump’s trade actions’ actual potential financial effects on local steel players are limited.

“The impact is not severe because Malaysia only exported 96,000 tonnes to the United States out of 34 million tonnes which it imported (in 2017). Malaysia’s imports from the United States only took up 0.28%, and Malaysia mainly exported flat products to the United States,” he told StarBiz.

Steady pace of export growth seen in first half | http://www.klsescreener.com/v2/news/view/349901

Steady pace of export growth seen in first half | http://www.klsescreener.com/v2/news/view/349901

Vitrox to develop advanced robotic vision equipment | http://www.klsescreener.com/v2/news/view/349903

spoofing tactic to scare investors. haha

Press Metal explained it exports "a very minimal amount" of its primary aluminium products to the US.

Semiconductor trends are considered to be leading indicators of technology and broader electronics demand.

"The main contributors to the increase were exports of electrical and electronic (E&E) products which surged by 27.1%, followed by chemicals and chemical products (23.4%), iron and steel products (60.9%), optical and scientific equipment (18%), manufactures of metal (14.8%) as well as transport equipment (32%)."
Read more at https://www.thestar.com.my/business/business-news/2018/03/05/malaysia-trade-exports-grow-17pt9pct-to-rm82m/#L5isskXlpjLvwyKJ.99

iron and steel products (60.9%)

Semiconductor trends are considered to be leading indicators of technology and broader electronics demand.

Malaysia's trade exports grow 17.9% to RM82b

"The main contributors to the increase were exports of electrical and electronic (E&E) products which surged by 27.1%, followed by chemicals and chemical products (23.4%), iron and steel products (60.9%), optical and scientific equipment (18%), manufactures of metal (14.8%) as well as transport equipment (32%)."
Read more at https://www.thestar.com.my/business/business-news/2018/03/05/malaysia-trade-exports-grow-17pt9pct-to-rm82m/#L5isskXlpjLvwyKJ.99

iron and steel products (60.9%)

https://www.thestar.com.my/business/business-news/2018/03/05/malaysia-trade-exports-grow-17pt9pct-to-rm82m/

"The main contributors to the increase were exports of electrical and electronic (E&E) products which surged by 27.1%, followed by chemicals and chemical products (23.4%), iron and steel products (60.9%), optical and scientific equipment (18%), manufactures of metal (14.8%) as well as transport equipment (32%)."
https://www.thestar.com.my/business/business-news/2018/03/05/malaysia-trade-exports-grow-17pt9pct-to-rm82m/


iron and steel products (60.9%)

出口漲17.9%勝預期　1月貿易盈餘97億 | http://www.klsescreener.com/v2/news/view/349703

Globetronics plans share split, bonus issue | http://www.klsescreener.com/v2/news/view/349725

Globetronics plans share split, bonus issue | http://www.klsescreener.com/v2/news/view/349725

Minimal impact from US tariffs, says Press Metal | http://www.klsescreener.com/v2/news/view/349729

Minimal impact from US tariffs, says Press Metal | http://www.klsescreener.com/v2/news/view/349729

Pentamaster targets two sectors | http://www.klsescreener.com/v2/news/view/349427

Pentamaster targets two sectors | http://www.klsescreener.com/v2/news/view/349427

Angela Merkel set for fourth term after months of political deadlock
https://www.cnn.com/cnn/2018/03/04/europe/germany-spd-accepts-coalition-deal-intl/index.html

No free lunch. Don't believe others easily. It's your decesion to sell or buy the stock. Nobody makes you sell or buy the stock.

Huawei focuses on emerging markets to accelerate digital upgrade | http://www.klsescreener.com/v2/news/view/349313

OPEC Oil Production Drops to 10-Month Low
http://www.hellenicshippingnews.com/opec-oil-production-drops-to-10-month-low/

Income tax cut, oil recovery to support Malaysia’s GDP growth momentum — Morgan Stanley | http://www.klsescreener.com/v2/news/view/349023

Malaysia’s economic environment positive ahead of GE14 | http://www.klsescreener.com/v2/news/view/349187

US$ rises on Powell's economic outlook | http://www.klsescreener.com/v2/news/view/348107

IMalaysian semiconductor super growth was offset largely by bearish USDMYR in the second half of 2017. Some people say that semiconductor growth will be moderated in 2018, while others hope for semiconductor supercycle.

I am of the opinion that if USDMYR rebounded nicely, Malaysian semiconductor growth in 2018 will be greater comapred to 2017.

http://www.theedgemarkets.com/article/ringgit-revisit-430-us-dollar-strengthens-says-dbs

off-market transaction

Alibaba just set up its first joint research center outside China to focus on A.I.
https://www.cnbc.com/2018/02/28/alibaba-sets-up-joint-a-i-research-lab-in-singapore.html

With recovering USDMYR MMSV is likely to rebound.

MMSV's P/E should be at least 13.00. MMSV should appeal to investors more than Unisem and MPI do.

Encik Azman bin Karim resigned from the Board of Directors of the Company to dedicate more time to other personal commitments and responsibilities.
http://www.malaysiastock.biz/Company-Announcement.aspx?id=1037531

Outlook
We understand that DNeX is looking to acquire a similar oil field to Anasuria cluster. If this materializes, bottomline would be boosted significantly. DNeX is in an ideal position to acquire new assets given its net cash position and robust free cash flow.
We believe DNeX’s 1Trade system, Malaysia’s first one-stop portal for total cargo and trade management is the future. As various multinational companies have begun utilising DNeX’s system, it will be able to more than
offset any revenue lost from the expiration of its NSW monopoly in endFY19.

Valuation
Our TP remains unchanged at RM0.72 based on SOP valuations. Maintain BUY on DNeX as in our opinion, it expanded into the O&G sector at the right time. Furthermore, recurring income from government-linked contracts should cushion any downside risk.
Source: TA Research - 28 Feb 2018

Dow Jones U.S. Semiconductors Index was only -0.1% yesterday. U.S. Semiconductor stocks have been generally bullish.