#4 Poh Huat Resources Holdings Bhd
Public Investment Bank has maintained its
OUTPERFORM rating on the stock with a target price of RM 2.20.
The positivity of the analysts is derived from the positive management of the company despite the pandemic.
"The temporary closure of Poh Huat Vietnamese operating base is expected to result in delay in shipments to its customers.
However, the group is currently in the midst of discussing with its customers to reschedule its delivery dates.
We are of the view that the temporary closure is unlikely to have any material impact on Poh Huat’s earnings, as the group has certain amount of ready inventories to mitigate the delay in some shipments.
In addition, Poh Huat could increase its production with extended shifts when operation resumes if needed, as we understand that the Vietnamese operations were operating at 2 shifts prior to the closure.
We estimate that for every 2 weeks of closure, Poh Huat’s earnings will be impacted by c.2%. Note that Vietnam Operations contributes c.55% of the group’s total sales in FY20 "
>> Read more about the company here.
#5 ViTrox
Hong Leong Investment Bank has maintained
its Buy rating with its target price at RM 23.28.
The extremely good results of the company has driven the analyst's positive sentiments.
" ViTrox’s 1H21 core net profit of RM83m (+89% YoY) was a beat accounting for 60%/57% of HLIB/street.
On YTD basis, all product lines registered exceptionally strong growths. It is optimistic on FY21 business prospect with the acceleration of digital adoption and transformation throughout the world amidst Covid-19 pandemic.
It will continue to focus on capacity expansion (+30%), aggressive material sourcing, securing supply chain collaboration, key markets expansion, new product innovation and Covid-19 risk mitigation to support robust demand from various sector, especially 5G, EV and AI.
We opine that global CM/EMS’ large scale relocation, expansion and order diversion activities will create an insatiable demand for its products"
>> Read more about the company here.
#6 AXIS Reit
Kenaga has
maintained its OUTPERFORM rating on the company with a target price of RM 2.15.
The main driver of the sentiment is the stable outlook of the company.
"Outlook. FY21 is expected to see minimal leases expiring at 18% of portfolio NLA, of which the Group has already secured renewals for 83% of these leases (vs. 32% in 4QFY20) on positive reversions, while
FY22 will see 21% of leases up for expiry. In the near term, the Group is actively eyeing industrial assets worth a total of RM135m, focusing on Grade A logistics located in Selangor, Penang and Johor and will
continue to target acquisitions with net yield of >6%."
>> Read more about the company here.
#7 My E.G. Services Bhd
Macquarie Equities Research has
maintained its outperform rating on the company with a target price of RM 2.43.
Main driver of the sentiment is due to the decreasing political risk.
"MQ Research reiterates its
Outperform recommendation on the shares of
My E.G. Services Bhd (MYEG) (51% total shareholder return (TSR)).
MYEG’s share price has declined 27% since its peak in early-March 2021 (vs KLCI -4%), driven by political instability in Malaysia and news flow regarding a tender for Covid tests, and has reached MQ Research’s bear-case valuation.
MQ Research believes the chance of further downside to the share price is low, as these risks have been priced in, and MQ Research advises investors to continue accumulating on weakness.
MYEG is proving to be politically agnostic, with demonstrable earnings resilience and contract extensions.
MQ Research’s estimate for a 21% net profit (NP) compounded annual growth rate (CAGR) FY21–24E supports a share price re-rating."
>> Read more about the company here.