We made no changes to our FFB production assumption of 280,000MT (1HFY23 numbers makes up to 44.4% of our assumption) as we enter into the seasonally high production cycle months. Optimal productivity, however, will be challenging amid the acute labour shortages as only 12.0% of the registered 400,000 foreign workers for all economic sectors have entered into Malaysia since January 2022.

CGB will be leveraging on the rising demand for adhesive tapes as the group is already operating a maximum capacity and looks to ramp up their production by 3.5x to 70.0m sqm of tapes p.a. Turnaround in FY22f is largely on the cards, backed by the construction segment’s outstanding orderbook of RM410.1m, while FY23f will gain further strength from their on-going manufacturing segment expansion plans. CGB could justify by pegging its FY23f EPS of 14.3 sen to P/E of 9.0x, arriving at a fair value of RM1.29.

The FBM KLCI slid alongside with the regional peers as persistent negative sentiment prevailed and pulled the key index below the 1-year low. However, we believe the local bourse should see decent buying interest after a sharp rally on Wall Street overnight as the surprise policy pivot by the Bank of England should lift the regional sentiment.

Lagenda Properties Bhd (LAGENDA) is a Perak-based property developer and has ventured into the affordable housing segment since 2018. Their on-going two major affordable housing township developments are (i) Bandar Baru Setia Awan Perdana in Sitiawan, Perak and (ii) Lagenda Teluk Intan in Teluk Intan, Perak which has a combined development area of 2,000 acres and 20,000 affordable homes.

The FBM KLCI slipped for another session as the key index succumbed to selling pressure in selected banking heavyweights. However, we believe the local bourse is poised for mild recovery as bargain hunting activities emerged in the previous session. Nevertheless, any rebound may be capped as investors may stay cautious ahead of the potential recession worries.

The FBM KLCI tumbled as the plantation, telecommunication, and banking heavyweights continued its negative tone amid the persisted bearish sentiment on the global front. We observed that the 5-day foreign net selling stood at RM753.9m. With Wall Street sliding deeper into a bear market, we believe the local bourse is likely to witness heightened volatility on the back of worries over the global economic downturn.

Focus Point Holdings Bhd (FOCUSP) is registered in Malaysia Book of Records as the largest optical retail chain store in Malaysia and also the first and only optical retail chain store to be listed in Bursa Malaysia. FOCUSP operates 180 outlets nationwide and Brunei that are supported more than 230 eye care professionals.

The FBM KLCI tumbled as persistent risk-off undertone, coupled with foreign fund outflow (5-day cumulative stood at RM562.5m) led to a broad-based selldown on the local bourse. While the cautious sentiment is likely to continue, we may see milder selling pressure as investors could pick up undervalued stocks and trade ahead of the tabling of the Budget 2023 in October 2022.