RHB Investment Bank launches new small-cap stock ideas for investors

NST Sun, May 15, 2022 12:41pm - 1 year View Original


KUALA LUMPUR: RHB Investment Bank Bhd has launched the 18th Edition of the RHB Top 20 Malaysia Small Cap Companies Jewels 2022, featuring a new selection of small-cap stock ideas for investors.

The RHB Top 20 is part of the larger RHB Asean Small Cap annual compendium from RHB Investment's research teams in Malaysia, Indonesia, Singapore and Thailand.

The RHB Top 20 features specially selected companies, or "jewels", with a market capitalisation limit of US$500 million covering 10 industry segments.

They are construction, consumer products and services, healthcare, industrial products and services, logistics, non-bank financial, oil and gas, plantation, as well as telecommunication and media sectors.

The bottom- up stock picking approach adopted centres around growth prospects, unique turnaround, event-specific, export-driven, and catalyst/thematic aspects, while also prioritising the concept of diversification.

All 20 companies featured in this year's book are outside RHB Research's existing coverage portfolio, as it seeks to unearth even more under-researched gems.

Representatives from Aemulus Holdings, Bonia Corporation, Coastal Contracts, Nova Wellness Group and Texchem Reseource were present at the virtual launch to share insights with the participants.

RHB Investment managing director and chief executive officer Ganesh Sabaratnam said the company had witnessed the adaptability of small-cap companies in navigating through the volatile market environment, with stronger performance in the FBM Small Cap with a year-to-date return of 5.3 per cent.

This was supported by leading sectors, such as plantation and oil and gas that benefited from the surge in various commodity prices.

"In terms of valuation, we believe the recent market weakness has sent the price to earnings ratio valuation for small-cap stocks to below mean level, which provides a healthy cushion to the valuation of big caps, making the investment thesis more compelling," he said.

RHB Investment said the selection criteria of the 20 companies featured cover a wide range of factors such as the companies' liquidity spread and size, managements' track record, industry fundamentals, earnings growth potential, changes in the operating landscape and the company's commitment to environmental, social, and governance principles.

Ganesh said these books had served investors well for the past 17 years in identifying hidden gems, and had become an RHB trademark garnering a strong investor following.

"This year, we are pleased to provide for the first time a Malay-translated version of the Malaysia Edition book catering to the needs of a wider audience," he added.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

AEMULUS 0.390
COASTAL 1.470
NOVA 0.545

Comments

Login to comment.