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Which Are The Burning Stocks In KLSE?

January 5, 2021

After a difficult 2020 due to an extraordinary pandemic outbreak, 2021 saw sustained volatility amid various obstacles.

Political difficulties plagued Malaysia, as well as “once in a century” flooding near the end of the year. The FBM KLCI benchmark index took a beating as a result.

Experts are now anticipating a stronger 2022, propelled by confidence about the revival of economic activity. 

So, which stocks are the greatest to own? The top choices for the year are listed below.

The Burning Stocks In KLSE

As of September 22, the FTSE Bursa Malaysia KLCI index, which monitors the performance of the top firms listed on Bursa Malaysia, was still down by more than 7% in 2022. However, analysts feel that the decreased price gives prospects for investors to add the below-listed stocks to their holdings.

#1. Malayan Banking Berhad (KLSE: MAYBANK)

Malayan Banking Berhad is a financial institution. Maybank’s stock is up 5% year to date. They make up revenue of RM43.45B, with a Net income of RM8.1B.

  • They have recorded an Operating Income Margin of 25.93% and an Operating Income Growth of 26.37% in 2021.
  • Their operations resulted in a Net Income Growth of 24.92% in 2021 compared to a negative % in 2020. As a result, the Net Income Margin will stand at 18.64% in 2021.
  • A view of the cash flow is also critical when deciding the stock purchase. MAYBANK has recorded its Net Operating Cash Flow Growth @ 54.17% in 2021, which is an increase compared to 2020.

This indicates that their normal operations are sufficient to manage their near-term obligations.

2. Sime Darby Berhad (KLSE: SIME)

Sime Darby is benefiting from China’s robust comeback in auto sales. Car sales in China increased by 29% in FY21, mainly owing to BMW’s China operations. As a result, Sime Darby is divesting non-core assets to focus on its main trading activities, industrial and motors, and healthcare.

  • Despite recent negotiations to sell Ramsay Sime Darby Healthcare (RSDH), this company is worth buying at a price objective of 2.55 ringgit.
  • It has an average price objective of 2.62 ringgit, representing a 19.6% increase from its current share price of 2.19 ringgit.

3. CIMB Group Holdings Bhd (KLSE: CIMB)

CIMB Group Holdings Bhd. is a financial and banking services provider. Most analysts rate CIMB shares as ‘buy,’ with an average price objective of 5.87 ringgit.

  • The price goal represents a 7.4% increase over the stock’s last trading price of 5.41 ringgit.
  • CIMB has recorded its Net Operating Cash Flow Growth @ 453.84% in 2021, which is an increase compared to the negative numbers in 2020. This shows that their routine activities are enough to meet their short-term liabilities.

Their operations resulted in a Net Income Growth of 259.62% in 2021 compared to a negative % in 2020. As a result, the Net Income Margin will stand at 18.23% in 2021.

The Bottom Line

Investing and trading are tricky, especially for people who need more time to research. The first step for anyone wishing to enter these markets should be to build a suitable portfolio with the help of experts. Then, get KLSE expert stock tips from The Learning Art and improve profits.