Positions 18102018

The above donut chart describes my direct exposure to the Malaysian equities market as of 18th October 2018.

I am heavily exposed to construction and property sectors, through IJM, Favco, LBS and Mah Sing.
Meanwhile I classifiy MyEG as services, Sime Darby a conglomerate, and Mi Equipment as technology/semiconductor exposures.

MyETFID is my lazy way of tracking the top Syariah-compliant stocks in Bursa, with possibilities of dividends.


International Exposure

As the growth of the domestic economy is expected to moderate, concerns whether these companies are sufficiently exposed to markets with more upside potential is warranted.

I do not select these stocks for their exposure to certain countries or geographical region. Yet, most of these equities are also exposed to international market. IJM has construction orders from India, while also planning to bid for more projects overseas as domestic construction projects might be shrinking in the short term. Favco meanwhile export their cranes internationally, mainly for both construction and oil and gas sectors. Same goes for Mi Equipment that produces semiconductor machines. Sime Darby as a huge conglomerate also has mining stake in Australia, last time I check.

Mah Sing and LBS have more limited international exposure – these two companies are mainly involved in domestic affordable property segments, though Mah Sing are also involved in other industries as well, in particular plastics.

In the future, I might review my holding in Mah Sing as I am pro-green industries.

Potential Upsides

Here are my intrinsic price estimates, and % potential upsides (or margin of safety, if you will):

Favco:

• estimated intrinsic price: 2.60
• current price: 2.30
• potential upside: 13%

Mah Sing:

• estimated intrinsic price: 1.60
• current price: 1.00
• potential upside: 61%
• attractive to purchase more, provided more funds available

LBS

• estimated intrinsic price: 1.000
• current price: 0.725
• potential upside: 38%
• has recently picked up strong upwards momentum after October global blood bath. What is happening here?

IJM

• estimated intrinsic price: 2.50
• current price: 1.67
• potential upside: 50%
• has recently picked up momentum, similar to LBS, but have been more volatile comparatively

MyEG

• estimated intrinsic price: 2.30
• current price: 1.50
• potential upside: 53%

MI Equipment

• estimated intrinsic price: 2.90
• current price: 2.80
• potential upside: ~1%
• almost non-existent margin of safety. However, I will hold on to it, as
• I've purchased it through IPO at 1.42, thus 100% gain!
• the company is newly-listed. It has quite a solid company pre-listing, and I expect it to continue to do so, at least in the short term

MyETF Islamic Dividend

• I have no clue how to estimate the intrinsic price for this as it's an ETF. Thus, I will review my holding here periodically