RHB’s Top Malaysia Small Cap Companies for 2014

By

Gliding high… RHB believes that the strong outperformances of small cap companies are “a reflection of their strong entrepreneurial drive and spirit that encourages innovation and ingenuity.” (photo credit: SAP)Gliding high… RHB believes that the strong outperformances of small cap companies are “a reflection of their strong entrepreneurial drive and spirit that encourages innovation and ingenuity.” (photo credit: SAP)

Following on from the roaring success of its 2013 edition, RHB Investment Bank recently released its 2014 edition of the “Top Malaysia Small Cap Companies”.

This year, its recommended “Top 5 Jewels” are, by alphabetical order, Berjaya Auto, Inari Amertron, OCK Group, SBC Corporation and Press Metal.

Last year’s recommended “Top 5 Jewels” were Brahim’s Holdings, Cahya Mata Sarawak, Instacom Group, Tambun Indah Land and Wellcall Holdings.

In its introduction, RHB said that its “2014 Jewels are broadly in line with the RHB top down view of the market where our key OVERWEIGHT sectors are Banks, Oil & Gas, Property, Plantations and Construction.”

“Since last year’s book, smaller cap companies continue to provide superior returns,” RHB had said earlier. “Small cap stocks, as measured by the FBM Small Cap Index (FBMSCI) and FBM Fledging Index (FBMFI) have generated returns of 14.0% and 29.5% respectively compared to the 3.2% for the FBMKLCI over the same period.

“In addition to coming from a smaller base, we believe the strong outperformances of these companies are a reflection of their strong entrepreneurial drive and spirit that encourages innovation and ingenuity.”

The list of companies recommended by RHB in its book this year, by alphabetical order, are:

(1)    Barakah Offshore Petroleum (target [diluted]: RM1.90)

(2)    Berjaya Auto (target: RM2.55)

(3)    Caring Pharmacy (target: RM2.57)

(4)    Catcha Media (target: RM1.10)

(5)    Complete Logistics (target: RM0.97)

(6)    EITA Resources (target: RM1.58)

(7)    Esthetics International (target: RM1.86)

(8)    Gadang Holdings (target: RM1.79)

(9)    GDEX (target: RM2.20)

(10) Hong Leong Industries (target: RM8.57)

(11) Hovid (target: RM0.42)

(12) Inari Amertron (target: RM3.72)

(13) Kossan Rubber Industries (target: RM5.10)

(14) LBS Bina (target: RM3.39)

(15) OCK Group (target: RM1.72)

(16) Pantech Group (target: RM1.25)

(17) Perisai Petroleum (target: RM2.05)

(18) Pintaras Jaya (target: RM4.61)

(19) POS Malaysia (target: RM5.45)

(20) Press Metal (target: RM5.47)

(21) Prestariang (target: RM4.90)

(22) REDtone International (target: RM0.87)

(23) SBC Corporation (target: RM2.98)

(24) Scientex (target: RM7.19)

(25) Syarikat Takaful Malaysia (target: RM15.00)

(26) Suria Capital (target: RM3.50)

(27) Ta Ann Holdings (target: RM5.00)

(28) Tambun Indah (target: RM2.50)

(29) Tune Insurance (target: RM2.70)

(30) Yinson Holdings (target: RM10.90)

 

Note: The above recommendations are made by RHB and reproduced here for general information purposes only. Please consult your stockbroker/financial consultant before making any investment decision.

Leave a Comment