There has always been a saying in the stock market that the Five Poor, the Six Terrible, and the Seven Turns Out. However, the author still believes that a brief downgrade/pullback for good companies is inevitable, so they will not deliberately open positions in May.
How hot is May 🔥 Naturally, everyone feels that it is not unusual for some popular stocks to rise 30-50% in the past month. However, this wave of bullish momentum has also benefited some single-digit PE companies that have been underestimated for a long time.
$CCK (7035.MY)$
CCK is a frozen retail food company from SARAWAK in East Malaysia. The company's branches grew from 72 in 2022 to 75. Sales in all countries grew steadily, and sales from Japan grew by almost 100% in 2023.
Although there was a one-time profit in Q3 2022 and Q4 2023, after deduction, the company continued to grow for two consecutive years. CCK has been in Single Digit Pe for a long time in the past 2 years, and is far behind its peers. Malaysian stocks are booming this time, and the value of CCK has finally blossomed due to the influx of hot money. The stock price has risen 42% in the past month.
Furthermore, the shipping company Harbor has been making huge profits in freight rates for the past 3 years, although profits in the past few quarters have been affected by falling freight rates 📉. Recently, however, business has begun to improve, and profit Qoq has recovered. Coupled with soaring shipping costs in Europe and the US, GDP recovery and export growth in Q1, HARBOUR, which involves transportation and integrated logistics, was also seen by the market, and its stock price has risen 22% over the past month.
$HARBOUR (2062.MY)$
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$KSL (5038.MY)$
#SouthernMalaysiaIndustryStock KSL three highs
Since the release of last August's performance until now, the stock price has doubled in 8 months. Although it has risen a lot, the PE valuation is only 4.30 times. In the fiscal year 2023, there are three highs: historical high in operating income, historical high in net income, and historical high in net cash.
The stock price has risen to near a 9-year high, but it has also been nearly 9 years without distributing dividends. Assuming a willingness to pay 25% of the profit as a dividend, which is 10 cents, the market should go crazy.
On April 30th, which is today, KSL announced the purchase of 183.3323 acres of land for RM211.58 million in Mukim Pulai, Johor Bahru. In the past six months, southern Malaysia has been the most prosperous state in terms of real estate, and the big trend of datacenters has also driven the economy in southern Malaysia, hence the real estate sector is expected to continue to be boosted.
I always believe that if KSL is willing to pay a 5-cent dividend, the valuation can be at least 6 times higher. The management is capable of paying but chooses not to, leaving shareholders unable to do anything. Fortunately, the investors holding shares have made a good profit in the past year in terms of stock prices. Let's inspire each other.