KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), AirAsia Bhd, Kuala Lumpur Kepong Bhd and Bermaz Auto Bhd are among MIDF Research’s top 10 picks for next year.
The 10 were selected for their inherent earnings quality, attractive valuation and growth at reasonable price, said MIDF Research in its 2017 outlook report released yesterday.
Rounding up the list are Tune Protect Group Bhd, Deleum Bhd, Muhibbah Engineering Bhd, Ta Ann Holdings Bhd, MyEG Services Bhd and Malaysian Bulk Carriers Bhd (Maybulk).
MIDF Research said the likes of
MRCB, Tune Protect and Maybulk offer possible returns of 54.1 per cent, 56.8 per cent and 47.5 per cent, respectively.
The firm said MRCB’s key catalysts include construction order book of RM1.5 billion, providing 36 months of construction backlog underpinned by 1.91 times of its last year’s financial year construction revenue cover, the development of Kwasa Damansara Plot C-8, Kuala Lumpur Sports City and Cyberjaya City Centre, and potential sale of Eastern Dispersal Link for RM1.8 billion to unlock its balance sheet.
MIDF Research said Tune Protect group has a first mover’s advantage in digital insurance space.
“It will continuously grow within that parameter whereby it is also predominant in the market share in local travel insurance and extends to establish new airline partnerships and venture beyond airline industry in the next two years.”
AirAsia makes a re-entry into MIDF Research’s top 10 picks after a recent share price correction that saw a 21 per cent drop from its high of RM3.20 in August this year stemming from the ringgit losing ground against the US dollar.