Top shares in respective sectors to invest in
2011 has been seen as a trouble-plagued year for most economies around the world. This was mainly attributed by the US debt crisis as well as that from the Eurozone. The economies in the first world have caused many others in the developing and emerging markets to suffer and Malaysia is just one of the many where investors have been very cautious about. Despite this, many are now looking forward to 2012 to be a better year and here we have compiled some of the best companies that you can consider investing in through their own respective industries and sectors.
Gas and telecommunications
Petronas as always will always be a good share to consider where they have been working towards diversifying their products into the natural gas sector. Other notable shares would surely include the likes of Genting and Maxis where the latter is a prominent player in the telecommunications sector. Apart from that, you could also consider the Axiata group which have been heavily marketing the brand around the region through its other partners in other countries.
The banking industry is set to continue its strong and stable growth with Maybank topping the market valuation segment. With RM62billion, Maybank remains as the safest bet in the financials sector while CIMB bank too is considered one of the strong contenders. CIMB which is the second largest bank in the country too will be making headlines throughout the year with their move upwards.
One of the dark horses might be JCY International and this is the top company in the technology sector. JCY is typically a hard disk manufacturer and with an RM2.7billion market capitalisation its shares have doubled in the last few months particularly with the recent floods in Thailand where supply for the parts have been halted. That would be the main reason why its shares have been doing so well and JCY has already banked in on the benefits. With the first quarter coming to a close, JCY’s profit is expected to grow by leaps and bounds. In fact, it is expected gain by at least 10 fold.
The technology sector is also further boosted by the likes of YTL E-Solutions under YTL Group which have a market capitalisation of RM1.2 billion. The recent launch of the 4G services (YES!) by YTL is seen as a major catapult for the group in the coming year.
Meanwhile, over to the construction sector, Gamuda is the current buzz especially with it being awarded the KVMRT (Klang Valley My Rapid Transit) project. Gamuda in its own stature is already a strong company with market capitalisation of RM7.7 billion and this is set to continue on the upward trend. The strongest construction company would then be IJM which have reported many projects in the pipeline which are set to take centrestage this year. The Canal City green township project is one which is being closely watched by industry analysts and investors alike which have been earmarked in Kota Kamuning.
The property sector is another area which have been growing robustly in recent years especially with the rising cost of property in major cities like the Klang Valley, Penang and Johro Bahru. The top property company to invest in would be UEM Land which has a market capitalisation of RM10billion. Following suit would be the current talk of the town SP Setia. UEM is a veteran in this market having been involved in major property development projects and int he next 2 years, their Angkasa Raya worth RM1.3billion is set to take place in Kuala Lumpur on top of its RM30bilion worth of other projects.
SP Setia on the other hand is already seasoned player in this sector with their award winning townships like Setia Alam and such and this year will see them expanding further into other areas which will include their 60-acre Aeropod project in East Malaysia’s Kota Kinabalu. This mixed development project is widely regarded as the next big thing with a combination of retail outlets, shopping mall, hotels and such.
Property development in Malaysia will not be complete without IOI Group, one of the largest conglomerates in the country. With presence in 15 countries, the company is also a major player in the plantations sector. IOI’s recent projects like IOI Boulevard and others have seen it moving upwards in profitability and shareholders’ confidence. In the final quarter ending 31 December 2011 alone, IOI recorded profit of around RM600 million from its RM4.1 billion in revenue. In the same context, another major plantations player would be KLK or Kuala Lumpur Kepong whose business in the oil palm industry has been remarkable and widely successful both in Malaysia and Indonesia.
In the consumer products market, you can look into PPB Group Berhad which is mainly involved in the areas of flour and animal feed milling, livestock farming, consumer products distributions, grains trading and entertainment as well. Its market capitalisation is RM20.1 billion which pretty much tops this segment. PPB Group is also the owner of the Golden Screen Cinemas which is the largest film exhibitor in Malaysia. The PPB Group is owned by Malaysia’s richest man Mr Robert Kuok and its strong Asian presence, particularly in China will surely boost the group’s earnings this year.
Meanwhile, you can also look into the cigarette giant BAT (British American Tobacco) which recently announced an after-tax profit of RM719million for the year ending 2011. The cigarette companies have over the years been pretty resilient to the market forces where they have been performing well each year in spite of the several crises coming about driven mainly by customer demand.
Nestle Bhd is another company which you can seriously consider. The market capitalisation of RM13.1 billion means that it has moved up the ladder of profitability with an annual turnover of RM4.7billion for 2011. The manufacturers of Milo, Nescafe and Maggi has always been a strong contender in the fast moving consumer goods (FMCG) sector where it has been leading the pack consisting of P&G, Unilever and Johnson & Johnson.