1. Construction sector
- maintain OVERWEIGHT
- prefer smaller amd mid cap contractors that we believe have the potential to win more projects.
-top pick : Suncon, Gadang
2. Auto sector
-maintain underweight
-while expect auto sales to improve through 2016, it will likely show a significant decline yoy.
-Weak consumer sector
-margin remain under pressure, given the unfavourable forex.
3. SKPETRO (current price 1.38, TP 1.26)
-downgraded to Neutral
-fy17 expected to be worse than our expectations.
-its 2 biggest segment (E&C and drilling) are expected to be under pressure due to lower work orders and lower daily charter rate for the latter.
-expect its brazil operation to grow, but wont be enough to offset the downfall.
4. SUNREIT (current price 1.64, TP 1.80)
-maintain buy
-proposing to acquire land in seberang jaya
-positive to its long term outlook
http://aimthebull.blogspot.my/2016/06/stock-pick.html
