This is the follow up from the earlier article on OSK 30 Jewels – Top Small Cap Companies posted in May. This time there are more detail figures in each stocks.
OSK Jewels Small Cap Companies was initially published by OSK in 2005. The selection of the 30 companies are based on Market Capitalization (<= RM1.5bn), Profit track record, Price earnings ratio (PER), Price to NTA (P/NTA), Net gearing, Return on Equity (ROE), Compounded Annual Growth Rate (CAGR) in earnings, Dividend prospects, Management track record & Stock and industry related catalysts.
Below are the full list of OSK 2012 Jewels which includes target price, forecast for 2012 PER & Dividend Yield.
Recently, during OSK’s small cap corporate day, OSK unveiled their 2012 Jewels. OSK Jewels actually is a list of small caps stock picks by OSK. They expect OSK Jewels to perform reasonably well during 2012. For the 2012 list, there are 31 stocks in the list.
The top picks are DAYANG (FV: RM2.34), JOHORETIN (FV: RM1.51), PRESTARIANG (FV: RM1.48) and TAKAFUL (FV: RM4.42).
Below are the full list of OSK 2012 Jewels.
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.
2010 proved to be a decent year for OSK’s Small Cap Jewels although their performance was eclipsed by the liquidity-infused rally, which benefited the bigger caps, particularly from 2H2010.
Of the 50 stocks profiled in handbook, half posted absolute returns in excess of 20%, with 49% outperforming the FBM Small Cap and FBM KLCI indices.
While the smaller caps are expected to bask in the glory their larger cap peers in 2011, investors should not ignore names with good longer term potential that are trading at attractive valuations.
OSK like small caps in the construction, property, oil & gas and consumer sectors as beneficiaries of the ETP, elections and earnings themes.
The table below are the 2010 performance of OSK Top 50 Small Jewels and performance since OSK’s Small Cap Jewels report released in April 2010.
We believe that Bank Negara’s latest measures in capping the LTV ratio would have very limited impact on the real property sector. In continuing with our theme, we maintain our OVERWEIGHT call on the Malaysian property sector and advise investors to accumulate on midto high-end residential property developers, particularly those with primary focus on mid- to high-end landed properties in Malaysia. Any knee-jerk reaction on the latest measure will present an opportunity for investors to accumulate.
The table below are the target price for selected developers in property sector.