Strategy Flash Note - Marketing smallcaps
Over the past fortnight, we were marketing smallcap stocks in Singapore, Hong Kong and Kuala Lumpur. We met 74 fund managers from 32 institutions. Interest in smallcaps was strong in Singapore and particularly in Kuala Lumpur, where fund managers were keen on listening to new stock ideas. However in Hong Kong, the funds were generally underweighted on Malaysia and were more interested in the macro issues such as the weak ringgit and politics.
What Happened
Over the past two weeks, we were marketing smallcap stocks in Singapore, Hong Kong and Malaysia. We met with 74 fund managers and analysts from 32 institutions over the past fortnight. Our clients we met include those from the major global asset management houses.
What We Think
We are not surprised of the strong investor interest in smallcaps in Singapore and Kuala Lumpur as the overall outlook in 2015 for the big caps looks unexciting and investors are looking at smallcaps for outperformance. Hong Kong investors were more keen on macro issues, which was expected as interest in smallcaps were coming mainly from domestic and Singapore investors. Our recent initiations, Only World Group and IFCA MSC generated strong interest among our institutional investors, which is an indication of how hungry institutional investors are for new smallcap ideas.
What You Should Do
Although some of our smallcap top picks did very well in 1Q15, we still see values in the smallcap sector. Some of our smallcap stocks like HeveaBoard and Signature International are only trading at 2016 5x-6x P/E and Signature’s dividend yield remains attractive at 5%. Our other top smallcap picks include MyEG, Prestariang, GHL Systems, Only World Group, Muhibbah and IFCA MSC.
Source: CIMB Daybreak - 14 April 2015
Over the past fortnight, we were marketing smallcap stocks in Singapore, Hong Kong and Kuala Lumpur. We met 74 fund managers from 32 institutions. Interest in smallcaps was strong in Singapore and particularly in Kuala Lumpur, where fund managers were keen on listening to new stock ideas. However in Hong Kong, the funds were generally underweighted on Malaysia and were more interested in the macro issues such as the weak ringgit and politics.
What Happened
Over the past two weeks, we were marketing smallcap stocks in Singapore, Hong Kong and Malaysia. We met with 74 fund managers and analysts from 32 institutions over the past fortnight. Our clients we met include those from the major global asset management houses.
What We Think
We are not surprised of the strong investor interest in smallcaps in Singapore and Kuala Lumpur as the overall outlook in 2015 for the big caps looks unexciting and investors are looking at smallcaps for outperformance. Hong Kong investors were more keen on macro issues, which was expected as interest in smallcaps were coming mainly from domestic and Singapore investors. Our recent initiations, Only World Group and IFCA MSC generated strong interest among our institutional investors, which is an indication of how hungry institutional investors are for new smallcap ideas.
What You Should Do
Although some of our smallcap top picks did very well in 1Q15, we still see values in the smallcap sector. Some of our smallcap stocks like HeveaBoard and Signature International are only trading at 2016 5x-6x P/E and Signature’s dividend yield remains attractive at 5%. Our other top smallcap picks include MyEG, Prestariang, GHL Systems, Only World Group, Muhibbah and IFCA MSC.
Source: CIMB Daybreak - 14 April 2015
