Information in this guide has been obtained from sources believed to be reliable. However, its accuracy or completeness is not guaranteed. While every precaution is taken to ensure accuracy, the publisher accepts no liability for any error which may arise.The articles are based on the opinions of the various authors and do not represent the opinions of this publication and/or the opinions of the organisation he/she represents.In no event is SHARES INVESTMENT liable for all and/or any direct or indirect loss arising from any use or any reliance of any information provided.

FEATURES p4 The Key Catalysts That Will Drive The Local Market

p7 Is The Sky The Limit For Gold Price?

p10 Corporate News And Takeovers Influence The FBM KLCI

p12 Gamuda Expects Vietnam Sales To Plug Loss Of Splash

p14 ATIC KL 2010 – Your Gateway To Profitable Investments

p15 Choosing The Correct Investment Strategy

p18 Hong Leong Makes A Move On EON Capital; MBF Hldgs To Be Taken Private

p21 Thomson Medical Delivers Admirable Growth On Elite Brand Name

■ CONTENTS ■ ■ Issue 24 ■ 8 Feb - 07 Mar 2010

PERSPECTIVE

All materials printed in SHARES INVESTMENT are protected under the copyright act. All rights reserved. No part of this publication may be reproduced in any form or by any means without the written permission of the publisher. Information in the publication should not be taken as offer/ advice to buy or sell securities.We, our associated companies and / or their officers, directors and employees may own or have positions in securities mentioned in the publication, and may from time to time, add on to or dispose of such securities.

In addition to the improving macroeconomic numbers that we have witnessed recently, several catalysts are lining up over the next few months to provide extra lift to the local bourse.

p7

p12

p4

MSHE_1-2_Content24.indd 1 2/4/10 2:26:53 PM

p14

REGULARS

p25 Market Indices

p28 Foreign Indices

p30 Market Capitalisation

p32 Major Trades

p34 Most Active Shares

p36 Hitting 52-Week High

p37 Hitting 52-Week Low

p38 Top Gainers

p40 Top Losers

p42 Lowest P/E

p44 Highest Yield

p46 Highest Margins

p48 Highest ROA

p50 Profit & Loss

p52 Upcoming Results Announcements

p54 Entitlements (cd, xd, cb, xb…)

p56 Performance of Recent IPOs

p57 Discount to NAV

p58 Main Market Companies A-Z

p226 ACE Market Companies A-Z

p247 Investment Trust

p251 Warrants A-Z

p256 Inactive Shares, Warrants & Loanstocks

p267 Companies Index A-Z

SHARES INVESTMENT (MALAYSIA) is published once a month.

We welcome contributions from readers, as well as from finance professionals. Please fax or e-mail (editorial@sharesinvestment.com) should you also have any queries, remarks or suggestions.

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Editor-in-chief Phan Tjun SernEditorial Director Lew Poh ChanSenior Consultant Dr Ho Kah LeongEditor Sang Ah KewRegional Research Editor Clement KanResearch Executives Aw Jie Sheng Lai Wyai Kay Lee Szu Yung Soo Yin Ling Xavier LimResearch Assistants Cassandra Sim Jade Lee Jasmine TohTranslators Catherine Mak Choo Ai Loon Wilson Sim Yong Chia Win

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MSHE_1-2_Content24.indd 2 2/4/10 2:27:04 PM

• EDITORIAL DESK •

NoticeDue to the Chinese New Year holidays, our subscription office will be closed from 13 February to 24 February 2010. If you have any urgent enquiries, you can contact us at my.sharesinv@sharesinvestment.com or +65 6745 8733. We apologise for any inconvenience.

3

Even though the FBM KLCI managed to reach a high of 1,308.52 on 21 January, the local equity bellwether index was

unable to stay above the 1,300 support, closing lower on each of the following 6 days.

No surprises, the bad news that caused the selloff emanated from the United States. While equity markets worldwide took a hit earlier when the Peopleʼs Bank of China unexpectedly hike the bank reserve ratio, they were affected this time round mainly by President Obamaʼs proposal to limit the size and scope of US banks and financial firms.

Nonetheless, according to David Koay, an analyst at Fundsupermart.com, several cata-lysts are lining up over the next few months to provide that extra lift to the local bourse. Find out what these are in our cover story on page 4.

This issue, we also take a peek at Malaysiaʼs

leading infrastructure group, Gamuda, which is looking to ink a joint venture agreement with a Vietnamese party for a property project in Ho Chi Minh City. Notably, HwangDBS Vickers Research has a ʻBuyʼ call on the company with a RM4.20 target price, a significant 51.6% upside to its current trading price.

Finally, we have an insightful article on Gold, which many consider to be a safe haven in times of volatility. Interested to know what will be driving the price of the aforesaid commodity in 2010? Do flip to page 7 for more info.

With the Year of the Tiger fast approaching, the entire Shares Investment team would like to wish all our readers and their loved ones a very joyous and prosperous Lunar New Year!

Clement KanResearch Editor

MSHE_3_Ed.indd 3 2/4/10 2:27:23 PM

4

ects include LRT extension (RM7b) and new LCCT ter-minal (RM2b). Construction industry is known to have high multiplier effects on the overall economy and gener-ates extensive backward and forward linkages with sectors l ike manufactur-ing and services sectors, of which both constitute a majority portion of the total GDP.

Key Economic Policies To Be Unveiled

This year, more favour-able economic policies are anticipated, to be revealed in the new economic model by the National Economic Advisory Council (MPEN) in February 2010 and the 10th Malaysia Plan (10MP) in June 2010. Glimpses of more investor-friendly poli-cies were already evident,

I n addition to the im-proving macroeco-nomic numbers that we have witnessed over the past few

months, several catalysts are lining up over the next few months to provide ex-tra lift to the local bourse. Among the key catalysts include positive news flow on major projects, unveiling of key economic policies, foreign fund flows, apprecia-tion of Ringgit (RM) over US dollars, firming commodity prices, Chinese New Year (CNY) rally coupled with improving corporate earn-ings.

Positive News Flow On Major Projects

The construction industry is expected to thrive this year as construction proj-ects worth about RM60b are expected to be rolled out over the next 6 to 12 months. Among the proj-

PERSPECTIVEtext : David Koay

The Key Catalysts That Will Drive

Source: Department of Statistics

MSHE_4-6_Perspective_2.indd 4 2/4/10 2:27:39 PM

5

including the liberalisation of 27 services sectors and financial sectors, review of minimum wage to attract talents from overseas and improving ties with regional economies like Singapore, China and India via high level visi ts to attract in-vestments from these re-gions. The core strategies of 10MP will include raising the competitiveness of the Malaysian economy, driving innovation and knowledge through quality training and education, bridging the de-velopment gap, improving the standard and quality of life coupled with streng-thening capabilities of in-stitutions and implementa-tion.

Foreign Fund InflowsForeign funds are slowly

returning to the market albeit in a moderate way after the heavy sell-down by foreign-ers after March 2008. With State Elections in Sarawak and the General Election approaching in 2011 and 2012 respectively, it will be crucial for the Government to ensure that its planned reforms be executed to re-gain the trust of the voters. Foreign investorsʼ interest could revive again, backed by a clearer picture of Ma-laysiaʼs economic growth plan over the next few years coupled with anticipated execution of reform policies and further liberalisation of its economy. It is interesting to note that despite the lack of foreign investorsʼ sup-

port, FBM KLCI has been resilient in its uptrend over the past year.

Appreciation Of RM Over US Dollar

In view of the USʼ large fiscal deficit resulting from stimulus measures to curtail one of its worst financial cri-ses, the US dollar is expect-ed to depreciate against the RM. This is further backed by the Malaysian Govern-ment ʼs effor ts to re in in the fiscal deficit via cuts

in operating and develop-ment expenditure, lowering of fuel subsidies coupled with broadening Govern-mentʼs revenue base such as disposal of government assets and review of GST, all of which could strength-en the RM and enhance Malaysiaʼs attractiveness as an investment destina-t ion. Consequent ly, Ma-laysiaʼs fiscal deficit is ex-pected to decrease to 5.6% of GDP in 2010 from 7.6% in 2009.

Source: Bloomberg

Source: iFAST compilation, Bloomberg

MSHE_4-6_Perspective_2.indd 5 2/4/10 2:27:48 PM

6

David Koay is an analyst at Fund-supermart.com.

Firming Commodity Prices Spell Good Times For Market

Commodi ty pr ices are expected to firm up further in 2010 owing to the re-covering global economy and especially Chinaʼs de-mand for raw mater ia ls. Th is bodes wel l fo r the Malaysian economy as it is much intertwined with commodities. About 40% of Governmentʼs revenue comes from oil-related in-dustries. Fiscal position of the Government could im-

prove on the back of higher commodity prices, enabling higher fiscal spending or lower fiscal deficit, both of which are favorable to the economy. In addition, with about 22% of the FBM KLCI constituents consisting of commodity-related com-panies, FBM KLCI could have the added l i f t from higher commodity prices. H is to r i ca l l y, FBM KLCI was closely related to oil pr ice, wi th a correlat ion of 80% over the past 10 years.

CNY Rally While it may just be pure

coincidence, it is interesting to note that the Malaysian market on average has been bullish around CNY. Based on the computation of the FBM KLCIʼs performance 30 days before and after CNY, the KLCI rose an average 3% during the 30 days be-fore CNY and spiked up to 6.3% shortly after CNY (Base count from 30 days before CNY). The KLCIʼs perfor-mance was in the positive territory in 12 out of 15 years on CNY day and at the end of 30 days after CNY. Besides, trading activities on average picked up signif icantly a few days after CNY, though this was not surprising given that investors may have taken a longer break for CNY.

Favorable Factors For Market Uptrend In Feb-ruary Onwards

The stock market is ex-pected to perform well over the next few months, backed by catalysts such as the un-veiling of the new econom-ic model by MPEN, more awards of major projects, the release of favourable corporate earnings results and Malaysiaʼs 4Q09 GDP data which is expected to rebound back into positive territory. The CNY effect could also bring about some positive effects on the stock market with additional good news.

Source: Bloomberg, iFAST compilation

MSHE_4-6_Perspective_2.indd 6 2/4/10 2:27:57 PM

7

Anthony Dass is Head of Research at Inter Pacific Research

is ʻwhether the sky is the limit for gold price?ʼ

Tracing the fundamentals, we found that goldʼs tradi-tional drivers are inflation, inflation expectations and the perceived value of the US dollar which has a strong inverse relationship of 0.76 out of 1.00.

Also lending support to gold price is the frequently viewed inference drawn as a safe haven refuge. But

this analogy failed during the worst of the 2008 upheaval when gold price fell by 1.7% with US dol lar up 6.7%. However, the trend reversed in 1Q09 when the markets relapsed, with both gold and US dollar up 4.4% and 4.5% respectively.

What Can Lose The Ap-peal For Gold?

In 2010, the major concerns are the fiscal and credit exit

Gold price surged i n 2 0 0 9 b y 12.1% on-year t o a v e r a g e US$984.90 per

troy ounce driven by broad commodity rally and US dollar decline. Expectations are for gold price to remain elevated in 2010 in view of the ongo-ing concerns over sovereign and corporate debt burdens globally. The question that is lingering in the minds of many

PERSPECTIVEtext : Anthony Dass

IS THE SKY THE LIMIT FOR GOLD PRICE?

Chart 1: US$ Index & Gold (per troy ounce)

MSHE_7-9_Perspective.indd 7 2/4/10 2:29:01 PM

8

strategies. These issues can become the most support-ive factors for gold price to trend upwards. But we expect these issues to become less major as 2010 wears on. The stimulus efforts will wind down gradually in 2010. Gov-ernmentsʼ moves to a more fiscally sustainable policy in 2010 and 2011 imply that the appeal of gold as an alterna-tive to currencies will continue to diminish.

Also of concern will be the global central banks which are expected to withdraw their extraordinary accommoda-tion. Tighter lending rates will eventually start emerging later in 2010, especially when inflation and expected inflation start to flare up. We fear the risk of two diverse views on expected inflation. One school of thought expects inflation to be mild in view of high un-employment, while the other believes inflation will ignite due to the stimulus policies implemented to address the crisis. We found the diverse view-flared inflation in US to average 3.7% from 1988 through 1995. In contrast, inflation was low from 1996 to 2006 averaging 2.5%, at the point of time when forecasters disagreed less.

Expectations are the US Fed will keep its short-term nominal rate near zero in 2010, implying real interest rate will remain low, thus lending support for gold prices to continue trending upwards. But the risk of po-tential inflation is still high. The US economy is also recovering. Thus, the Fed is

more likely to end the reins in its unconventional policies and start tightening monetary policy sooner than expected. A 50-75 basis points hike in 2010 and 100-125 basis points hike in 2011 from its current near-zero policy will exert downward pressure on gold price.

Drivers Of Gold Price In 2010

The growing fear is that the US dollar is on the edge of hyper-inflation. It will keep

the upward momentum of gold price alive. The underly-ing concern over the current and future value of US dollar will be the major driver of the gold rally following the huge government expenditure of about US$8.2t that the Fed and US agencies have lent, spent or guaranteed to lift the economy from the worst recession since the 1930s.

Risk of loss of appetite on US government paper can also boost gold price. Should the US government

Chart 2: US Inflation (yoy %)

Chart 3: US FOMC Rates (%)

MSHE_7-9_Perspective.indd 8 2/4/10 2:29:09 PM

9

fails to attract adequate sav-ings to meet its borrowing needs, chances are that, as opposed to reducing its borrowing by cutting spend-ing, they will continue to ʻprintʼ the US dollar. Such measure may not heighten the risk of ʻcrowding outʼ, but instead, raise the fear of loss of appetite on US government papers.

The possibilities for de-mand of physical gold to rise in preference to paper gold cannot be ruled out. More so

Chart 4: Gold (US$ per troy ounce)

Chart 5: Gold (US$ per troy ounce) & US$ Index

with Greenlight (a major US-based hedge fund) deciding to convert its large position in GLD (the big NYSE-listed gold ETF) into physical gold in July 2009. Their decision became a ʻwake-up callʼ for investors who realized the fundamental di fferences between owning ʻphysical goldʼ and ʻpaper goldʼ.

The paper gold is a fi-nancial asset and is mere-ly a derivative owned and gives one exposure to gold price. Paper gold comes

with counterparty risk as op-posed to physical gold which is a tangible asset and does not have counterparty risk. The annual carrying cost of paper gold is much higher than owning physical gold. With huge amount of paper gold available relative to the availability of physical gold, the probability for physical gold price to rise in order to reduce the imbalances between supply and demand remains high. The high price may entice some of the pres-ent holders of physical gold to sell and hold foreign cur-rencies.

Verdict While we remain opt i -

mistic on gold in 2010, we continue to hold our view that gold could experience some soft patch as 2010 wears out, more likely in 2H10.We expect a softer patch for gold in 2H10 as the US dollar should rebound with liquidity tightening from the ending of the loose and unconventional monetary policies. Nonetheless, the overall outlook for gold re-mains bright, driven by a combination of factors: 1) US dollar weakness; 2) in-flation expectations; 3) low real interest rate environ-ment; 4) and the process of economic recovery. We project 2010 gold price to average at US$1100 per troy ounce (up 11.7%) and 2011 averaging at US$1050 per troy ounce (down 4.5%) from US$984.90 per troy ounce in 2009 (up 12.1%).

MSHE_7-9_Perspective.indd 9 2/4/10 2:29:37 PM

10

CORPORATE NEWS AND TAKEOVERS INFLUENCE THE FBM KLCI

market stayed optimistic as even a failed terrorist attack did not dampen the market optimism.

Back home in Malaysia, the FBM KLCI closed higher in December, reaching 1272.78 points, up 1.1% from No-vemberʼs closing of 1259.11 points. KLCI traded thinly at a low of 1255.66 on 21 Decem-ber 2009 and subsequently gained momentum to a high of 1275.22 on the 29 Decem-ber 2009 as plantation stock rose following positive signs that CPO price will move away from RM2500 per MT

since the high of RM2887 on 13 May 2009. Decem-ber volume, which averaged 70.2m, is weaker than the CY09 average of 224.6m. The lower volume was within expectation as investors shied away during the year-end pe-riod. Nevertheless, December 2009 still had some fair share of excitement, especially with shorter trading days at 21days as Malaysia celebrated vari-ous public holidays. Out of the 21 trading days, the FMB KLCI rose in a total of 13 days, the highest being 8.79points on 28 December 2009.

On the g loba l front, the USʼ November ISM manufacturing index data con-

tinued to expand for the 4th consecutive month while on the contrary, its non-manufac-turing data fell unexpectedly. At the same time, the US Fed left its policy rate unchanged as inflation remains subdued. US sales data improved with improved retail sales, while overall home sales jumped to the highest level in 3 years. Together with a lower unem-ployment rate of 10%, the US

text : Sim See Shyong

KLCI Index performance (1 Dec-09 – 31 Dec-09)

PERSPECTIVE

MSHE_10-11_TrendSpotting.indd 10 2/4/10 2:29:56 PM

11

Opening Price 1-Dec-09

Closing Price 4-Jan-10

MonthlyPerformance Price Highest Price Lowest

Genting 6.89 7.46 8.3% 7.46 6.89 Kuala Lumpur Kepong 15.44 16.5 6.9% 16.5 15.44 Tanjong PLC 16.18 17.28 6.8% 17.28 16.18 Nestle (Malaysia) 32.68 33.88 3.7% 33.88 32.48 Berjaya Sports Toto 4.22 4.37 3.6% 4.37 4.17Table 1: FBM KLCI top 5 performers

The best performer was Genting, which gained 8.3% although its cash cow, Genting Malaysia was up only 0.3%. Both companies are expected to remain abuzz as Resorts World Sentosa, which opened on the 20th January 2009, remains in the limelight. The worst performing stocks in the FBM KLCI were Astro and BAT, both of which fell by between 7.5% and 7.1% respectively. BATʼs sluggish performance was due to the governmentʼs tough ruling on cigarette sales. The sale of cigarettes in packets of fewer than 20 sticks will be prohibited from 1 June 2010 while the minimum price for cigarettes was set at RM0.32 per stick. Meanwhile, Axiata has been the most actively traded stock with an aver-age of 9.3m shares traded,

which is 75.6% higher than the PLUS, the second most actively traded counter.

The corporate scene was stirred up by the news of the potential merger between Hong Leong Bank with EON Cap, making it the 4th largest bank by assets if the merg-er proves to be a success. Property and construction companies like Mah Sing, Sunway, WCT, MK Land, Hunza Properties and Muda-jaya remained in the limelight in view of contract and project announcements.

Decemberʼs market was also boosted by the Gov-ernmentʼs seriousness to reduce expenditure. This was reflected by the decision to withdraw the subsidy for white bread and the raising of sugar price by RM0.20. Property stock gained following the

modification of the Real Prop-erty Gains Tax (RPGT) ruling set during the 2010 Budget by the authority – The RPGT is to be reimposed, only on homes sold within five years.

Linear Corp, a heating, ventilation and air-condition-ing (HVAC) solution provider interestingly soared to a 2-year high of RM0.585. It came about following its successful bid in securing RM1.66b con-tract to build a cooling plant in Perak.

Positive news also flowed into JCY International, one of the worldʼs largest HDD com-ponents manufacturers and Maxwell International Hldgs. Both are seeking to list in KLSE, Malaysia in 2010.

In all this excitement, on a passive note was the DRB-Hicom storyline, whereby the company decided to part away from General Motors in their joint venture to import and distribute Chevrolet ve-hicles in Malaysia.

Opening Price 1-Dec-09

Closing Price 4-Jan-10

MonthlyPerformance Price Highest Price Lowest

YTL Power International 2.24 2.21 -1.3% 2.25 2.19Petronas Dagangan 9.00 8.8 -2.2% 9.00 8.58MISC 8.93 8.51 -4.7% 8.98 8.41British American Tobacco 46.10 42.82 -7.1% 46.10 42.00Astro All Asia Networks PLC 3.35 3.1 -7.5% 3.35 3.00

Table 2: FBM KLCI top 5 losers

Daily Average Volume Volume Total

Axiata Group 9,278,718 204,131,800 Plus Expressways 5,282,755 116,220,600 Maxis 4,671,836 102,780,400 IOI Corporation 4,648,314 102,262,900 Table 3: FBM KLCI most active counters

Sim See Shyong is a research analyst at Inter Pacific Research

MSHE_10-11_TrendSpotting.indd 11 2/4/10 2:30:03 PM

12

Gamuda Expects Vietnam Sales To Plug Loss Of SPLASH

CORPORATE DIGESTtext : Sherman Kumar

However, of grave concern is Gamudaʼs 40%-owned SPLASH. It is one of the three main water concessionaires for Selangor. The company is currently in the process of negotiating with the Federal Government on a system of a discounted cash flow (DCF) for the takeover of its assets by the Selangor government. This is following 15 months of futile negotiations between the Selangor government and the water players which had failed to reach an agreement as the offer was deemed “too low”.

The Core IssueGroup managing director

Datuk Lin Yun Ling said the real issue behind the failed negotiations was the price, as the value of the concession lies in the recurring earnings and not the net book value.

In an interview in the Star-Biz, Lin said, “Over the last 10 years, we have invested a lot in making the plant cost

efficient and increased our profit margin.”

“Everything has turned out quite well and recurrent earnings have become quite substantial. Moreover, we still have another 20 years in the concession,” he said after his companyʼs AGM in December.

Currently, its core inter-national project overseas is the Vietnam property project in Hanoi - Yenso Park. The project, with sales figures ex-pected to be in the RM200m region, will have its launch date in May 2010. In addition to this, Gamuda is also look-ing to sign a JV agreement with a Vietnamese party for a property project in Ho Chi Minh City. The company is expecting sales from its Viet-namese ventures to reach RM1b by the year 2011. This could help to plug the loss of SPLASH.

Gamuda is one company that has laid low in 2009, a fea-ture expected

of companies heavily focused on the construction industry. However, expect changes in 2010 as the company (with some RM5.7b in order book) continues on its expansion trail. Hot on its radar are projects in the Middle East. Its RM3b works on Doha Airport and Sitra Causeway Bridges in Bahrain, both slated for completion by the end of 2010, are progressing well.

On the domestic front, the electrified double-tracking project from Ipoh to Padang Besar would continue in the coming months as the gov-ernment had more or less finalized the land acquisitions in Penang and Kedah. Having factored in the land acquisi-tion delays, the Government has extended the completion deadline by one year to end 2013. (Continues on Pg 17)

MSHE_12/17_CD.indd 12 2/4/10 2:30:19 PM

Wishing You AHappy & Prosperous

Lunar New Year

Best Wishes From™

CNY_2010.indd 6 2/3/10 4:35:04 PM

14

There are also additional master trading sessions with longer in-depth discussions on focused investment class-es, such as indices, stocks, commodities, and trading strategies. “NextVIEW also offers a series of full-day follow-up sessions as an extension to the topics dis-cussed under our post-ATIC program,” says NextVIEW Malaysia Country Manager, Mr. Paul Yeo.

“Again, the ATIC KL will fea-ture an Indicator Symposium where participants can meet face-to-face with the creators of technical indicators and learn how they use these indicators to make millions of dollars from the trading floor. The creators will share their techniques and provide case studies to demonstrate their uses. Interested participants are encouraged to register early as attendance is limited to 100 people to allow for more interactive time with the speakers,” he added.

Among the financial gurus that have been lined up at the ATIC KL 2010 are Da-ryl Guppy (founder & direc-tor of Guppytraders.com), Alan Hull (Trader, Author & Educator and Creator of the Hull Moving Average),

Alan Oliver (Private Trader, Author & Educator), Don Schellenberg (Founder of Master Money Traders), Mr. Dar Wong (Trader, Coach, Hedge Advisor and Newspa-per Columnists, SGX Certi-fied Trainer), Mr. Benny Lee (Market Strategist), and many more. These trading profes-sionals will be sharing differ-ent financial and investment topics like Equities, REITs, ETFs, Currencies, Real Es-tate Investments, Index and Commodity Futures, Options, Warrants, CFDs, Unit Trusts, Derivatives, Property, Money Management, Trading Tools, Wine Investment, Strategies & Methodologies, ASEAN Equity markets and many more.

The ATIC is also an invest-ment products showcase: a one-stop shop for latest in-vestment services and prod-ucts. Investors and traders can explore and compare the

Investors and trad-ers will be spoilt for choices when they attend the 4th Asia Trader and Investor

Convention (ATIC) on March 20 and 21 at Kuala Lumpur Convention Centre. This is the only event in Malaysia that brings together over 30 renowned international and local speakers to share their first hand investment & trad-ing strategies, coaching trad-ers and investors techniques for profitable invesments under one roof.

Themed “Your Gateway to Profitable Investments”, ATIC Kuala Lumpur is expected to welcome over 15,000 del-egates, visitors representing pre-investor, retail investors, active traders, market profes-sionals and novice investors from the national as well as the region.

Among the program sched-uled including an Investment Clinic featuring four panel-lists who will be on hand to answer questions and offer advice on trading and invest-ing. It would be a good time for investors and traders to get a pulse on the share market and its outlook, and learn how to make money from investments.

ATIC KL 2010 – YOUR GATEWAY TO PROFITABLE INVESTMENTS

IN THE SPOTLIGHT

text : NextVIEW

(Continues on Pg 19)

MSHE_14/19_ATIC.indd 14 2/4/10 2:30:39 PM

15

David Garrard is the Vice President of Asia Pacific for Recognia Inc. (www.Recognia.com), a provider of web-based financial analytics for on-line stockbrokers. For more information contact dgarrard@recognia.com

the value investing model focus more on quality stocks at a reasonable price and less on f inding severely undervalued companies. The strategy described be-low captures the essence of the quality stocks-based approach.

Value strategies are best followed in bullish markets only – a good test of whether a market is in a bullish trend is to test that the local index is above the 75 week moving average. If the overall equity market is bearish, consider an alternative strategy or as-set class such as gold.

Value investing is much l ike when you are in the market to buy a used car. You want the car that has the least mileage, the best reputation or brand name, at the best price so that you need to borrow little or no money.

The Strategy UncoveredA quality-driven value in-

vestor asks the following four questions before invest-ing in a company:

Q u e s t i o n 1 - H a s t h e company been performing well? Letʼs filter on the companyʼs return on equity being great-er than 20%. Question 2 - Does the com-pany generate substan-tial profits? Is it a “quality” company from a profitability perspective?

S&P 500 companies av-erage approximately 40% gross profit margin. We will filter for those companies enjoying over 45% gross profit margins.Question 3 - Is the stock pr ice discounted signif i -cantly?

Hard-core value investors are always looking for dis-counts. One way to identify undervalued companies is to look for low price/book ratio. Note that book value incorporates depreciation of assets and ignores in-tellectual property valua-tions so some industries will exhibit varying ranges of price/book. Note also that an especially low price/book ratio might be an indication

A fter an impres-sive recovery in 2009, eq-uity markets may go into a

sustained sideways move. If your goals include wealth protection and growth, now is the time to find a set of tools and strategies that will serve you well in 2010 and beyond. This article profiles investment strategies that can be uti l ized on local, regional and global equity markets. The strategies will utilize fundamental analysis, technical analysis and some will even combine the two analysis methods.

Quality Stocks At A Reasonable Price

By buying companies at less than their intrinsic val-ues, value investors can often maximize potential profits while mitigating risk. But value investing methods have evolved in the years since Benjamin Graham and David Dodd first popularized the approach in the 1930s. Less strict interpretations of

EDUCATIONtext : David Garrard

CHOOSING THE CORRECTINVESTMENT STRATEGY

MSHE_15-17_Edu.indd 15 2/4/10 2:31:36 PM

16

of a troubled company.Question 4 - Is the company running on low debt?

To ensure we are not con-sidering companies with excess debt, we limit our-selves to companies that have a low debt to equity ratio. This means we are investing in companies that are generat ing earnings growth from operations and shareholders' equities and not from borrowed money. Companies using debts to

finance their operations can build up interest expenses, leading to lowered earnings. This, in turn, can negatively affect our investment in the future.

Modern Web-based Tools Now Aid Investors

New web-based tools en-able individual investors to quickly and confidently identify stocks which meet their investing objectives by using easy-to-use graphi-

cal interfaces. Using these new tools, investors can easily follow the investment strategy described above, and then test the historical performance of the model using backtesting tools.

Backtest ing evaluates the results of the chosen investment model against multiple years of historical stock market data. The in-vestor will be able to quickly evaluate whether his or her strategy can “beat the mar-

Recognia Strategy Builder Tool for interactive strategy creation and backtesting

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THOMSON MEDICAL Delivers Admirable

Growth on Elite Brand Name

W h e n w e say t ha t Thomson M e d i c a l C e n t r e

(Thomson Medical) is a prominent local brand, it is in fact an understatement. Winning the Singapore Pres-tige Brand Award (SPBA) not once but 6 times in a row (from 2004 to 2009), Thomson Medical achieved a remarkable milestone of being the first company to be inducted into the SPBA – Hall of Fame – a prestigious and elite circle of brands, in December last year.

Just recently, the Main-board-listed company added another feather to its cap by beating other hospitals

in the Customer Satisfac-tion Index for Singapore, under the Customer-Centric Initiative spearheaded by SPRING Singapore and NTUC. Garnering a score of 73.3, which was above the industry average of 68.9, Thomson Medical reigned supreme in the healthcare sector for 2009.

Celebrating LifeFounded in 1979 by Ex-

ecutive Chairman Dr Cheng Wei Chen, Thomson Medical has been a niche healthcare provider for women and children since inception. Boasting an excellent pool of highly experienced obstet-rics and gynaecology (O&G) specialists and paediatri-

Yeo: Our near-term challenge will be to make Thomson Medical into a regional brand

cians, Thomson Medical has grown by leaps and bounds throughout these years.

Last year alone, a record-breaking 8,907 babies were

text : Clement Kan

Across the cAusewAy

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delivered at Thomson Medi-cal – the highest across all private hospitals. “Since 2002, the number of babies delivered at Thomson Medi-cal have grown consistently every year, exceeding our expectat ions,” Al lan Yeo Hwee Tiong, Group Chief Executive of Thomson Medi-cal, commented during an exclusive interview with Shares Investment (Sin-gapore). “For the past 3 to 4 months, we average 800 deliveries a month, which is quite a feat, considering that other larger hospitals are delivering around 400 to 500,” he added.

Even though it is mainly targeting the middle to upper income group, the company does not ignore patients who want a lower class of beds. According to the manage-ment, the 190-bed Thomson Medical has over 80 single rooms, which are always

fully occupied. “If there is ever one complaint people make about the company, it would be the difficulty in getting a single room,” Yeo remarked.

Unlike traditional hospi-tals, Thomson Medical ’s ambience and décor dis-tinctively oozes a resort-style feel. Notably, its VIP rooms and premier wards are complete with luxurious interior finishing and relax-ing spa music. They are also equipped with a patient bedside terminal, comprising an interactive nurse call that allows for visual contact and communication with nurses. Patients can also surf the internet, play games, watch movies and shop on-line for a host of mother and baby products available in the hospital.

As highlighted by Yeo, Thomson Medical charges one of the most competi-

tive room rates amongst all private hospitals. Based on statistics published quarterly by the Ministry of Health, a one-bedded ward (normal delivery) at Thomson Medi-cal costs $4,334, more than $200 below the industry average.

Apar t f rom de l i ver ing quality services, Thomson Medical also aims to be-come a knowledge provider. As such, the company has earlier launched Thomson-Baby.com and Thomson Baby Planner. Supported by SPRING Singapore under the Technology Innovation Programme, ThomsonBaby.com is the first interactive and personalised pregnancy and baby website developed by a local hospital. Both the website and the Planner pro-vide educational content and acts as a one-stop shop for expectant mothers and their families, helping busy par-

Making patients feel at home

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ents save time and money.“We are also the first hos-

pital in Singapore to intro-duce confinement nannies. These nannies undergo ex-tensive hands-on training programme at our hospital,” Yeo said.

In The Pink Of HealthF r o m F Y 0 6 t o F Y 0 9 ,

Thomson Medical has been register ing steady prog-ress in terms of its top- and bottom-lines. For the first quarter ended 30 November 2009, the company raked in net profit of $3.5 million, a 23.9% year-on-year rise, on the back of a 14.6% revenue jump to $18.8 million. Its gross margin stood at 43%.

The managemen t a t -tributed this improved per-formance to increases in inpatient admissions, de-liveries and ancillary ser-vices. More importantly, the Thomson Women Cancer Centre, which was estab-lished in February last year, has started making positive bottomline contributions.

In a bid to further boost its organic growth, Thomson Medical has recently set up an 80/20 joint venture company, the Thomson Pae-diatric Centre, with 2 senior paediatric consultants, Dr Ang Poon Liat and Dr Ang Ai Tin, to provide paediatric services in Thomson Medi-cal.

Meanwhile, the company also intends to leverage on its premier brand name to attract more senior O&G specialists to take up clinic tenancy and, at the same

time, continue to expand its existing network of 7 satellite clinics under the Thomson Women’s Clinic brand name to provide better outreach to the neighbourhoods island-wide.

Overseas OpportunitiesOn the overseas front,

Thomson Medical’s f lag-ship hospital consultancy and management project is slated to begin operations in 3Q10. Located in Binh Duong Province, Vietnam, the Hanh Phuc International Women and Children Hos-pital is much larger than its Singapore counterpart, with around 260 beds in total. For the uninitiated, Binh Duong Province is the fastest grow-ing Province in Vietnam and is the place where the Viet-nam Singapore Industrial Park is situated.

In fact, Thomson Medical will be working exclusively with its Vietnam partner on 3 hospital projects. “We have completed the busi-ness plan for the proposed development of our second hospital consultancy project

in Hanoi and are still look-ing for a suitable land site,” revealed Yeo.

Expecting positive con-tribution from Vietnam in 2011, Yeo mentioned that over 1 million babies are borned in Vietnam every year, while Singapore’s na-tional birth rate is a mere 38,000. The affluence level in Vietnam has also gone up significantly. Hence, there are certainly huge oppor-tunities for Thomson Medi-cal to capitalise on. “Our near-term challenge will be to make Thomson Medical into a regional brand,” Yeo exclaimed.

On whether Thomson Medical wil l see a dip in deliveries in the Year of the Tiger, Yeo remains san-guine, saying that even if deliveries do drop, the company will strive to grab a bigger market share of the smaller pool. “If minis-ters, high-ranking officials and celebrities all come to Thomson Medical, there must be something r ight about this place, isn’t it?” Yeo concluded.

Artist impression of the Hanh Phuc International Women and Children Hospital

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