icapital.biz - English Vol 28 No 01

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The week of 18 August– 24 August 2016 Volume 28 Number 01
H | Trading Picks
THE 4TH
ESTATE - MEDIA
“HillaryClintonmay not be the newUS president on possibility of email
indictment.When questioned, she replied, “It’s not going to happen”.
This further raises the possibility thatDonaldTrumpmay actually be the
next president of theUSA.Donald has alreadywonmore nominations
since…………”
(PAGE9)
NEW YORK
“InAmerica, the share of income earned by the top1%Americanshas
been rising over a prolonged period andby 2014, thepercentage share
is substantiallyhigher than theother the same
time,millions ofAmericans .”
(PAGE6)
TOKYO
“In 2015, Japanwas ranked 61st out of180 countries in “Reporters
WithoutBorders”global press freedom rankings. Japanhas the same
press freedom ranking asGuyana,DominicanRepublicand is ranked
even belowMalawi. Japanwas ranked 11th in 2010.”
(PAGE7)
TONGHERRRESOURCES
“AtRM1.93,TongHerr is capitalised atRM238.4mln.For this,whatdo
investorsget in return ?”
(PAGE12)
Malaysia
InJan,exportsplunged2.8%while importsgrew
3.3%onayear-on-yearbasis toRM61.9blnand
RM56.5bln respectively.This resulted ina trade
surplusofRM5.4bln...
(Page2 )
China
InFeb,exportsplunged20.6%, year-on-year,
toRMB821.76bln,while importsdropped8.0%
toRMB612.26bln, yieldinga trade surplusof
RMB209.5bln. Inamoreaccurate reflection
of theunderlying trade conditions,exportsand
imports in the first twomonthsof2016...
(Page3 )
UnitedStates
InFeb, the ISM non-manufacturing index
(NMI) fell by 0.1 percentage points from
Jan to 53.4%, declining for the fourth
consecutivemonth.Thiswas due to 3 of
the 4NMI component indices; namely, new
orders, employment and supplier deliveries,
contracting inFeb...
(Page2 )
HongKong
In the fourth sessionof the12thNational
People’sCongressat theGreatHall of the
People inBeijing, capital ofChina, held on 5
Mar 2016,Chinaunveiled the draft outlineof
the13thFive-YearPlan on nationaleconomy
and social development,which sets the target
of averageannualeconomic growth...
(Page7 )
GlobalStockSelection
With the latest financial results recentlyThis
weekiCapitalprovidesanupdateonREXLot
HoldingsLimited (REXLot),amajorplayer in
theChina lottery industry.Thisupdate is timely
aheadof itsupcomingSpecialGeneralMeeting
tobeheldon18Mar2016 inHongKong.
To recapitulate,REXLot isengaged ...
(Page14 )
KLSEConclusion
HillaryClintonmaynot be thenewUS
presidentonpossibilityofemail indictment.
Whenquestioned,she replied, “It’snotgoing
tohappen”.This further raises thepossibility
thatDonaldTrumpmayactuallybe thenext
presidentof theUSA...
(Page10 )
Intelligence
Independence
Integrity
TheStockmarketSpecialist
10March–16March2016
Volume 27Number 26
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Theweekof 10March– 16March2016 Volume27Number26
TURNTOPAGE 8
“In2015,Japanwas ranked61st
outof180countries in “Reporters
WithoutBorders”globalpress freedom
rankings.Japanhas thesamepress
freedom rankingasGuyana,Dominican
Republicand is rankedevenbelow
Malawi.Japanwas ranked11th in2010.”
“In fact,as theCEOofCapital
Dynamicshasbeen saying
repeatedly, ifone isexcited and
impressedwithChina’sdevelopmentperformanceover the lastalmost4
decades, thenext 3 to 4decadeswill
beevenmoreexcitinganddynamic”
Tokyo
Instead of facing facts and
truth that hisAbenomicshas
been a complete disasterand that his approval rating
is falling,ShinzoAbe has
instead responded by curbing
press freedomandmuzzling
opposition to hispolicies.Surrounded bybadnews
everywhere,Mr.ShinzoAbe
has not surprisingly reacted in
a typicalFascistmanner.
Sincehe took office, his
governmentandhis cronieshave beenexerting formal
and informalpressure on
Japan’smedia and their
critical coverageofhis rule.
He handpicked a loyalist,
KatsutoMomii, to runNHKin Jan 2014 to rein in critical
coverage of hisFascist rule.
The newNHK boss promptly
gave a press conference
saying that the Japanese
army forcingwomen intosexual slaveryduringWorld
War 2 “could be found in
anynation thatwas atwar.”
In addition, officialsof both
NHK andAsahi, amediarival, have been scolded by a
commissionofShinzoAbe’s
LiberalDemocraticParty,and
asi/Capitalwrote in its issue
dated4/7/2015, amember
ofAbe’s parliamentaryblochas threatened towithdraw
advertising revenue from
twoOkinawan newspapers.
The harassingof Japan’s
mediahasnot stopped.
Recentweeks have seen theresignation of three television
journalists, all known to beout
of favourwith thegovernment,
Source:Flickr/m-louis Is themoustache representingNaziJapan?
China’s “InternetPlus” strategy aims to catapultherself into “advanced industries”
such assemiconductors, robotics,e-commerce,bigdata and cloud computing.
in circumstances suggestive of
pressure fromMr.Abe’s friendsin networkmanagement.
IchiroFurutachi,Hiroko
Kuniya andShigetadaKishii–
three respected broadcasters
with a reputation foraskingtough questions -were forced
out as partof a crackdown
on Japan’smedia by an
increasingly intolerantprime
minister or asiCapitalput it
frankly,FascistShinzoAbe. InFeb2016, the internal affairs
minister,SanaeTakaichi,
warned broadcasters that
repeatedly failed to show
“fairness” in their political
coveragewould be takenoff theair.The saidminister
has the power to suspend
broadcasting that doesnot
maintain political neutrality.
ShigetadaKishii angeredgovernment supporters after
criticising security legislation
pushed through byAbe’sLDP.
HirokoKuniya’s crime “had
been to irritateYoshihideSuga,
the chief cabinet secretaryanda closeAbeally,withan
unscripted follow-upquestion
duringadiscussionabout the
security legislation”(source:
world/2016/feb/17/japanese-tv-anchors-lose-their-jobs-
amid-claims-of-political-
pressure).TheGuardianalso
reported thatAbeandhisallies
hadmade their feelings knownabout thebroadcastersduring
secretivedinnerswith top
mediaexecutives.
Under Japan’s state
secrets law, reporters canbe imprisoned forup to
five years if they leak state
secrets. In lastDec, Japan
abruptly cancelleda visitby
DavidKaye, theUN special
rapporteur for freedomofexpression. In2015, Japan
was ranked61stoutof180
countries in “ReportersWithoutBorders”globalpress freedom
rankings. Japanhas the same
press freedom rankingas
Guyana,DominicanRepublic
and is rankedevenbelow
Malawi. Japanwas ranked11th in2010.
HadShinzoAbe been
heading theUK or theUS,
hewouldhave been forced to
resign longago.Yet, Japanand the nowmuzzledmedia
continue topretend that his
Abenomics best,
Japan’s economy remains
trappedbetween contractionand stagnation.Not a single
piece of economic datahas
been reassuring.i Capital
retains its bearishshort-term
outlook of theTokyo stock
market at a range of13,000 to17,000 for theNikkeiAverage.
Aftera sharp rebound in the
last 2weeks from anoversoldsituation, theTokyo stock
market is set to resume its
vicious bearishonslaught.See
StopPress for the latest.
iCapital is retaining its bearish
longer-termoutlook of the Tokyo stockmarketwith the
Nikkeigoing all theway back
below the 10,000 level.
HongKong
In the fourth sessionof
the 12thNationalPeople’s
Congressat theGreatHallof
thePeople inBeijing, capital
ofChina, held on 5Mar 2016,
China unveiled the draftoutline of the 13thFive-Year
Plan on national economy and
socialdevelopment,which
sets the target of average
annual economic growth of
above6.5% from 2016 to
figure 2shows,
the 6.5% annual growth rateover a five-year period is the
lowest forover three decades.
China’sGDP is expected to
exceed 92.7 trillionRenminbi
(US$14.2 trillion) in 2020,comparedwithRMB67.7
trillion in 2015. Is the 6.5%
target rate realisticand
achievable?
Chinawill stick to
the usualmeasures likereforms of the state-owned
enterprises,agricultural
modernisation,manufacturing
upgrades, pollution control,
poverty reduction, energyconservationandmore.
This time,however, the
latest 5-year plan promises
to be themost technology
forward-looking.Prime
ministerLiKeqianghighlighted thepromise of
the Internet, explaining that
various sectors, ranging from
manufacturing to government
to health care, need to
connect to the Internetandraise theirefficiency aspart of
the “InternetPlus” strategy.
Beijing aims to
catapultChina into the
leading position in termsof “advanced industries”
such as semiconductors,
chipmaterials, robotics,
e-commerce, big data,
cloud computing,encryption
technology, aviation
equipment,and satellites.Named “InternetPlus,” the
policy sets a series of goals
forChina to follow from
2016 through 2020, and
depends heavily upon the
power of the Internet andtechnology to sustain her
growthanddevelopmentand
turn the nation into a digital
power part of this,
Chinaplans to increase herresearchanddevelopment
spending toa totalof 2.5%
ofGDP through 2020.Such
spendingaccounted for
2.1% ofGDP from 2011 to
2015.Moreover, Internet
Plus promises that families in“large cities”will haveaccess
to 100megabyte-per-second
Internet, and that broadband
serviceswill reach 98%
of the population living in
incorporated villages.In short,Chinawill
be emphasising an
innovation-drivendevelopment
strategywithmajor emphasis
on science, technologyandentrepreneurship.Theadded
value of the services sector is
Figure2China’sEconomicGrowth
A|MarketOpinion
7 CapitalDynamicsSdnBhd
800 Super Holdings Limited
(5TG)
Bonvests Holdings Ltd
(B28)
800 Super Holdings Limited staged an impressive
surge but its upward momentum came to an end when
it reached the upper boundary of its ascending price
channel. Both its daily DMI and MACD are diverging
bearishly. As such, i Capital rates 800 Super Holdings
as a trading Sell with a target price of S$0.50.
Bonvests has been struggling to stay above its
upward sloping line and it does not seem like it is
succeeding. Its weekly MACD is bearish near the
zero line. i Capital rates Bonvests a trading Sell with
an initial target price of S$1.07. A drop below this
major support would see Bonvests falling to S$0.78.
Bonvests (B28)
No. of Shares Outstanding 402,167,000
Trailing EPS (S$ cents) 5.17
Trailing PER (times) 23.41
Trailing Dividends (S$ cents) 1.60
Gross Dividend Yield (%) 1.32
Book Value per Share (S$) 2.14
Current Price S$1.21
800 Super (5TG)
No. of Shares Outstanding 178,800,000
Trailing EPS (S$ cents) 8.38
Trailing PER (times) 8.60
Trailing Dividends (S$ cents) 2.00
Gross Dividend Yield (%) 2.78
Book Value per Share (S$) 0.37
Current Price S$0.72
36 Capital Dynamics Sdn Bhd