Stock Picks

Deleum, Dividend Yield & Fair Value/Target Price

Deleum Berhad

Deleum Berhad (5132), is a provider of a diverse range of supporting specialized products and services for the oil and gas industry, particularly the exploration and production of oil and gas. Deleum participation in oil and gas industry was dated since 1982.

Three largest shareholders of Deleum are Lantas Mutiara Sdn Bhd, Hartapac Sdn Bhd and Datuk Vivekananthan with total holdings of more than 40 percent.

Deleum is known pay attractive dividend to the shareholders. For the past 3 years the dividend yield stays above 6% which is about 2 times of the current fixed deposit rate.

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OSK Top 5 Stock Picks for Jul 2011

Malaysia already one of the world’s stronger performers so far in 2011. OSK believe the good run will continue in July and hence advocate the sectors linked to the ETP, namely Banks, Construction, Property and O&G, as investment ideas for the month.

OSK also continue to see the local market climb towards year-end target of 1680 pts, although the 1600-pt psychological resistance might be difficult to break before Budget 2012 which to be unveiled on 7 Oct.

For July, OSK top picks are from Banking, Construction, Property, Oil & Gas and Steel

The table below are the target price for OSK’s July 2011 top picks.

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OSK Oil & Gas Sector Stock Picks, June 2011


OSK remain OVERWEIGHT on the O&G sector given the numerous opportunities to be mined by O&G service providers, spurred on by Pengerang’s development.

Two recent developments are;

  • Dialog Group signed a Development Cum Joint Venture Agreement (DJVA) with the Johor State Government granting it the right to start land reclamation works in Pengerang in Malaysia’s Johor state, and use the reclaimed land for the construction of a Deepwater O&G Terminal.
  • Petronas announced that its USD20bn Refinery and Petrochemical Integrated Development (RAPID) project, also to be located in Pengerang, will house an oil refinery, petrochemical plants and possibly, a LNG regas terminal.

Below are the target prices and ratings for selected Oil & Gas stock.

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OSK Property Sector Stock Picks, June 2011

OSK believe the biggest gainers from the current upcycle are the mid- to high-end developers, particularly those with focus in developing landed properties and also have significant exposure in high growth areas.

As such, OSK top buys for the sector are UEM Land and SP Setia for mid- to large-cap property companies while Plenitude is top pick for small cap companies.

For the mid- to high-end residential properties, OSK top buys include BRDB and HunzaProp.

Below are the target prices and ratings for selected property stock.

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OSK Small, Medium & Big Caps Stock Picks for 2H2011

While markets did not rally as much as expected in 1H2011, OSK are keeping our view of an election-fuelled rally towards year-end, bringing the KLCI to 1680-pt target.

Banks, Oil & Gas, Construction, Property & Healthcare/Media remain OSK Preferred sectors. OSK Top Buys are generally extracted from these sectors.

OSK note that their Top Buys are not cheap but they continue to promote these stocks on account of their lower risk profile and the cautious mood in the market.

Below are OSK Top Buys for 2H2011

Top Buys for Big Caps Stocks

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