KapitalWise: August 2016

Monday 29 August 2016

Equity Research - Favelle Favco Berhad (7229.KL)

Favelle Favco Berhad (7229.KL)

Favco is a company incorporated in Malaysia and registered office is in Klang, Selangor.
It is listed on the Bursa Malaysia under the stock code 7229.

We have researched this company and believe that the upside potential of the stock is c. 18% based on relative valuation.

Please click here for the research report and make sure you read the investment research disclaimers at the end of the report.

Kind Regards and Happy Trading,

KapitalWise

Sunday 14 August 2016

Equity Research - Kim Hin Industry Berhad (5371.KL)

Kim Hin Industry Berhad (5371.KL)

Kim Hin is a company incorporated in Malaysia and registered office is in Kuching, Sarawak.
It is listed on the Bursa Malaysia under the stock code 5371.

KapitalWise has researched this company and believes that the upside potential of the stock is exceeding 20% based on discounted cash flow model.

Please click here for the research report and make sure you read the investment research disclaimers at the end of the report.

Kind Regards and Happy Trading,

KapitalWise

About Me

Coming from a credit analyst background, I have experience with analysing the creditworthiness of corporate and syndicated loans (leveraged buyouts, assets financing and real estate developments) and assist bank's credit committee members to make decision on credit allocation. I want to jump out of my comfort zone from assessing the downside risk to assessing the upside potential (which I agree is much harder as factors such as market sentiment and political issues are something financial models generally cannot model).

My analysis approach starts from assessing the sustainability of the capital structure of the company (eventually I am a credit guy), cash flow generation of the company, comparing financial performance with identified competitors (which I seldom see research analysts at investment banks do, or at least the ones that I see), and try to assess the appropriateness of the valuation model to calculate the fair value (something I need to work on because as a credit analyst, my experience is concentrated in analysing credit risk and capital structure rather than valuing companies).

I am always happy to hear any comments and suggestions.

Thanks for visiting.

Jackson