CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology</li>
<li>Eight stock remains, and six stocks added to our portfolio</li>
<li>Since its inception, it has generated a before-fee total return of 96% versus the MSCI Asia ex Japan of 48%</li>
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We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Eight stock remains, and six stocks added to our portfolio
Since its inception, it has generated a before-fee total return of 96% versus the MSCI Asia ex Japan of 48%


External broker reports(aggregated public sources), Kenanga Investment Bank Bhd

Kenanga Investment Bank Bhd

External broker reports(aggregated public sources)

Established for more than 45 years, Kenanga Investment Bank Berhad is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul>
<li>We raised our DCF-driven target price to RM3.40 from RM3.10 on the back of 15%-23% upgrade in FY22-FY23 net profit forecasts on higher total margin spread assumption of RM2.60/mmbtu from RM2.50/mmbtu-RM2.40/mmbtu.</li>
<li>We believe our previous assumptions were conservative as the strong 1QFY22 margin is to set a new base for the next three years. OUTPERFORM maintained</li>
<li>Gas Malaysia Distribution Sdn Bhd (GMD) continued to register volume growth as all shippers have to pay for the usage of GMD’s distribution pipeline</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


We raised our DCF-driven target price to RM3.40 from RM3.10 on the back of 15%-23% upgrade in FY22-FY23 net profit forecasts on higher total margin spread assumption of RM2.60/mmbtu from RM2.50/mmbtu-RM2.40/mmbtu.
We believe our previous assumptions were conservative as the strong 1QFY22 margin is to set a new base for the next three years. OUTPERFORM maintained
Gas Malaysia Distribution Sdn Bhd (GMD) continued to register volume growth as all shippers have to pay for the usage of GMD’s distribution pipeline

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Gas Malaysia Bhd - Margin To Stay Elevated

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>Back on the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a>  at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. </p>
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<p>The deal looked - and looks - clean. It was just a question of timing, and SCRs often average around six months to complete.</p>
<p>Apart from an announcement on the <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3175290" target="_blank" rel="noopener">14 July</a> extending the date in which the board intends to respond to Seaport proposal, there was no further development.</p>
<p>Late yesterday, RHB <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3181001" target="_blank" rel="noopener">announced</a>, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.</p>
<p>This gets the ball rolling, with an indicative completion date in the 4Q21.</p>
</div>
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<p>More below the fold.</p>
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Back on the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK)  at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. 


The deal looked - and looks - clean. It was just a question of timing, and SCRs often average around six months to complete.
Apart from an announcement on the 14 July extending the date in which the board intends to respond to Seaport proposal, there was no further development.
Late yesterday, RHB announced, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.
This gets the ball rolling, with an indicative completion date in the 4Q21.


More below the fold.


MMC Corp (MMC MK): Board Support, At Last

<p><a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> has <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, has made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%. </p>
<p>The Offer is being done via a selective capital reduction and repayment (SCR) exercise.</p>
<p>Seaport Terminal owns 51.76% of MMC.  </p>
<p>MMC primarily operates a number of ports in Malaysia, plus holds equity stakes in <a href="https://www.smartkarma.com/entities/malakoff-corp-bhd" target="_blank" data-smartkarma-citation="entities:404:1" rel="noopener">Malakoff Corp (MLK MK)</a> and <a href="https://www.smartkarma.com/entities/gas-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:14078:1" rel="noopener">Gas Malaysia (GMB MK)</a>.</p>
<p>The offer is valid until the 15 July, should MMC wish to proceed.</p>
<p>More below the fold.<iframe width="1" height="1" frameborder="0" scrolling="no"></iframe></p>
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MMC Corp Bhd (MMC MK) has announced Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, has made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%. 
The Offer is being done via a selective capital reduction and repayment (SCR) exercise.
Seaport Terminal owns 51.76% of MMC.  
MMC primarily operates a number of ports in Malaysia, plus holds equity stakes in Malakoff Corp (MLK MK) and Gas Malaysia (GMB MK).
The offer is valid until the 15 July, should MMC wish to proceed.
More below the fold.












MMC Corp (MMC MK): Privatisation Offer From Syed Mokhtar

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

<p>Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption contributed 4.1 percentage point (ppt) to GDP largely driven by private consumption while fixed capital formation contributed 1.7 ppt. Change in inventories and net exports detracted 1.2 ppt and 0.7 ppt respectively from GDP. Net exports detracted from overall GDP as imports grew at a faster pace than exports.</p><p>On the supply side, growth continued to be driven…</p>

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption contributed 4.1 percentage point (ppt) to GDP largely driven by private consumption while fixed capital formation contributed 1.7 ppt. Change in inventories and net exports detracted 1.2 ppt and 0.7 ppt respectively from GDP. Net exports detracted from overall GDP as imports grew at a faster pace than exports.On the supply side, growth continued to be driven…

Malaysia: Manufacturing and Services Drive GDP

Malaysia

Gas Malaysia Bhd. provides exploration of oil and gas services. The Company offers natural gas and liquefied petroleum gas.

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Gas Malaysia (GMB MK)

The Stocks to Own in Asia – Vol. 39

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology. Six stock remains, and eight stocks added to our portfolio.

A. Stotz Investment Research

Gas Malaysia Bhd - Margin To Stay Elevated

1QFY22 margin spread is to stay for at least three years which is the shortest contract tenure while the rest are 5-year and 8- year contracts.

Kenanga Investment Bank Bhd

MMC Corp (MMC MK): Board Support, At Last

Trading at a gross/annualised spread of 10.5%/31.2%. I would expect the circular to be dispatched within a month. I'd get involved here

David Blennerhassett

MMC Corp (MMC MK): Privatisation Offer From Syed Mokhtar

I think this is a done deal and would expect shares to trade tight to terms. Assuming a mid-October completion, this may well trade up to ~RM1.94...

David Blennerhassett

Malaysia: Manufacturing and Services Drive GDP

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption...

Rajan Govil

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