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.
The prices of food commodities have been on an uptrend due to a perceived tight supply. Amid concerns of how this will affect bottomlines, OSK believe that the share prices of food companies will lag in 2011.
OSK think that the near term negative impact on bottomlines is inevitable as companies adjust to higher raw material prices. On the other hand, OSK believe the retail industry will continue to deliver good earnings in 2011 driven by strong consumer spending and companies’ expansion plans.
OSK downgrade the F&B subsector to NEUTRAL, with CI Holdings and QL Resources as our top picks while we maintain OVERWEIGHT on the retail industry, with Parkson remaining our favorite stock.
Below are the target prices and ratings for selected consumer product stocks.
We are OVERWEIGHT on the retail sector. Besides the favorable outlook, the sector is one of the highest dividends yielding, which makes it a good pick in anticipation of a volatile 2H10. Our top pick is Parkson Holdings (PHB) (BUY, TP 6.75), which is poised to ride on the strong recovery in China’s domestic consumption and Zhulian (BUY, TP RM3.77), given its solid fundamentals compared to its peers, as well as its attractive dividend yield.
Below are the target price for consumer product sector.
OSK Research expects companies in its top 50 Malaysian small-cap list, dubbed “50 Jewels”, to register between 5 per cent and 15 per cent growth in earnings this year, driven by their strong fundamentals, as well as a recovery in the economy.
In their 2009 small-cap list, 32 out of 50 of them having posted absolute returns of 50 to 375 per cent, outperforming the benchmark index. So I hope 2010, 50 Jewels will perform reasonably well.
OSK Research also targeted the benchmark FTSE Bursa Malaysia KL Composite Index to hit 1,465 points by year-end. It also placed a fair value of 1,580 points on the index in 2011.
The table below is the top 10 companies in OSK Small Cap 50 Jewels and their target price.