CIMB Navigating Series 2018

The first of the CIMB Navigating series for 2018 is here. The latest update would be Navigating Vietnam 2018


Navigating China
Navigating Malaysia
Navigating Indonesia
Navigating Thailand

INARI Another Record Breaking Quarter

What wasn’t said had already been said by the stock price that flies this morning. It is easy to read when quarterly reports post higher revenue and higher profit where there’s no argument to be made clear unlike the TUNEPRO review (< click for link) that we posted earlier.

Although this is the record quarter for Inari, we think that it is not over for the obvious fact that Q1 2018 which ended in September 2017 doesn’t factor in the iPhone X yet. The teardown for the latest iPhone X has already been done and I count 3 parts in the preliminary teardown.

Broadcom BCM59355 wireless charging controller

Broadcom AFEM-8072, MMMB power amplifier module

Broadcom touch screen controller, labeled BCM15951B0KUB2G.

Not sure how these parts contribute to INARI but the whole list isn’t detailed yet in this teardown.


Meanwhile, here is a report from CIMB on Inari Amertron


Insurance Sector New Rule by BNM

Under the latest Bank Negara compliance issue, foreign insurers listing in Bursa Malaysia requires a 30% shareholding by local investors. In the report below by CIMB, they view that we would likely see IPOs coming in for large cap insurance companies such as AIA, Great Eastern and Prudential coming into the market.

They would be required to open up their holdings to local investors let it be retail or institutional.

Another alternative would be seeing more and more M&A activities happening. Nothing much to recommend here but its a good head up for now.


Unisem Nice Chart Good Industry!

UNISEM just posted the latest quarterly report with record revenue. Higher revenue growth but lower earnings is always a good sign and it could signify that the earnings lagged due to reasons such as deferred cost, etc.

Once margin normalizes, it would grow accordingly catching the growth in revenue. If the revenue grow or maintain in for the next quarter’s earnings report, then we should see share price reacting aggressively catching the ideal price to earnings target eventually.

Note that we always prefer signs of revenue growth rather than stagnant revenue. The reason being revenue can be used as a key estimate for actual size of the business. Higher earnings without revenue growth would actually mean that the size did not grew but just operating efficiently. A simple value trap scenario that we commonly see.

Chart wise, we see some pull back after the earnings were report a couple of days ago. But we are confident that this pullback is temporary and has the legs to trade the stock above RM4.00 permanently.

Any entry price below RM4.00 seems to be good for the time being.

Have a look at the latest CIMB Report on Unisem

CIMB on Bumi Armada Oct 2017

Well we still like Bumi Armada compared to other operators such as Sapura Energy. We think that the future prospect for Bumi Armada could be considered neutral but the current premium that it is trading is much cheaper than other operators.

But this report from CIMB gave us the heads up from this paragraph.

Bumi Armada Berhad (BAB) may need rights issue, on top of partial Olombendo stake sale

So I guess the weakness in terms of the stock price not moving with the increase in the price of crude comes with the reason of analyst anticipating a rights issue ahead. We would love to acquire after the stock goes Ex. Simple as that!


CIMB Navigating Asia Pacific

Asia Pacific is so vital in China’s plan of One Belt One Road (OBOR) policy. Most of the major corporations in China had already kickstarted the OBOR craze positioning themselves for this wave to sweep them to new locations.

Chinese government is still under communist style economy which is a good thing when they initiated the OBOR policy. It will be done no matter what, simple as that!

Take a look the the latest Navigating Asia Pacific report by CIMB which encompasses how to strategize anticipating this policy.