CIMB on Malaysian Healthcare Sector

We agree with the recommendation for IHH but we still felt that this is the stock that isn’t worth buying when the price is consolidating. We prefer to buy IHH on dips during weak market times somewhat like today.

Valuation remains high for hospital operators but it is still a good business to invest in with REIT like exposure coupled with strong growth in the long term.

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CIMB Downgrades Malaysian Banks

The argument for the downgrade refers to the implementation of Malaysian Financial Reporting Standards (MFRS) 9. Somewhat similar to CET1 ratio, the provision methodology would change under MFRS 9.

It was estimated that under MFRS 9, it would negatively impact the net profit of banks in the future.

See the full report below including sensitivity analysis of respective banks.

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The 7th of The Decade Again…

Well well well… It’s that time again.

7th of The Decade

2007, 1987, 1977, 1957, 1917. These were the peak years for Dow Jones Industrial Average. Well it doesn’t prove that a crash is imminent but historically, the data is really scary and proves that the 7th of every decade seems cursed.

2.jpgWhat happens this year then? Peak months are usually July and October according to CIMB. Take a look at the full article by CIMB on evidence  backing this evidence.

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CIMB Assumes Coverage on Bumi Armada

Such a long report for Bumi Armada by CIMB.

Click for Link

 

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Our Take

Bumi Armada is really one of the best there is for the oil and gas sector. We like it more than Sapura Energy due to its balance sheet. But of course, Sapura Energy would gain the most from the spillover from Petronas and likely most sensitive to oil price movements. Nevertheless, if you believe in oil this is a cheap counter to acquire at the moment.

CIMB on Digital Free Trade Zone

So… Jack Ma came last week and when he is here, it’s definitely e-commerce related development. Indeed, the plans by our government to establish the Digital Free Trade Zone (DFTZ) requires Jack Ma’s expertise making it the world’s first special trade zone that will promote the growth of eCommerce by providing a state-of-the-art platform for SMEs and enterprises to conduct the businesses and services.

The end product for this establishment would be KLIA Aeropolis which would turn into a logistics hub and Bandar Malaysia which turns into a digital hub for internet related companies.

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From payment agents to marketplace owners and logistic partners, all would benefit from this effort as it creates a whole new economy for Malaysia.

Take a look at CIMB’s report on the beneficiaries of DFTZ.

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CIMB Reviews RHB & AmBank Merger

Well 2 years ago, our banking sector was shook by the three Malaysian bank mergers from CIMB, RHB and MBSB. Just recently the rumors are back with RHB having plans to merge with Am Bank. We felt that this might be the reason why both RHBBANK & AMBANK shot up outperforming other majors recently.

The CIMB report below talks about the likelihood of this merger happening…

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