Chaya Mata Sarawak Bhd (CMSB) is regarded as a mini-conglomerate with business exposure across (i) cement & clinker manufacturing, (ii) construction materials & trading, (iii) construction, (iv) road maintenance, (v) property development, (vi) Samalaju development and (vii) ICT. The group also involves with strategic investment through 18.9% stake in Kenanga Investment Bank Bhd and 20.1% stake in KKB Engineering Bhd.

The FBM KLCI eked out marginal gains following the decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) at 2.75%. Nevertheless, we expect the sideways trend on the local bourse may turn into a negative biased environment prior to the Lunar New Year holiday after Wall Street extended its slide amid increasing concerns on softer economic activities going forward and the expectation of the Fed’s tone to remain hawkish.

The FBM KLCI slid as the cautious trading sentiment emerged ahead of the BNM MPC meeting, bucking the positive regional markets performances; the bullish sentiment on the regional markets was supported by the unchanged Bank of Japan’s monetary policy and optimism over China’s reopening. We believe the traders may take a cautious approach following the weaker trading tone on Wall Street overnight and ahead of the BNM OPR decision.

Fiamma Holdings Bhd (FIAMMA) started off since 1979 and has subsequently grown its presence of distribution of electrical home appliances, sanitary wear, bathroom accessories, home future and medical devices throughout Peninsular and East Malaysia. The group also involves in a small scale property development since 2013 as well as property investment through Wisma Fiamma and Menara Centara.

The FBM KLCI rebounded, buoyed by late buying in telecommunications and industrial products & services heavyweights. We believe the inflation rate in Eurozone, as well as Bank Negara Malaysia and Bank of Japan’s monetary policy decision will remain in focus. Meanwhile, sectors such as manufacturing, construction, plantation, and agriculture may see production activities normalising going forward after the demand for migrant workers will be met under the Relaxation of Employment of Foreign Workers Plan.

Operating 12 furnaces. Following the aforementioned conversion, we gather that OMH continues to operate 12 out of 16 furnaces. Coming into FY23f, we reckon that OMH will be able to deliver a total production of 360,000 tonnes/pa. Already, 9M22 saw total production of 281,341 tonnes (106,023 FeSi and 175,318 Mn) which accounts to 78.2% of our assumption of 360,000 tonnes.

The FBM KLCI staged a minor pullback, snapping three-session winning streak as investors took profit ahead of the Chinese New Year holiday. Investors may take a cautious stance amid the lack of fresh catalysts environment, but overall sentiment could suggest that the downside risk is limited as the Fed is expected to be raising the interest rate at a softer pace going forward following the declining US CPI data. Meanwhile, the market is waiting for BoJ’s interest rate decision, as well as the UK and Eurozone’s inflation rate.

Thailand-based consumer packaged foods distributor who serves as an exclusive distributor for ChaCha brand products for Thailand market, distributing to 43 distribution points covering Central, Northeast, Northern, and Southern regions. We project core earnings to grow from (i) improved demand amid economic recovery, (ii) reduced purchase price from suppliers resulted from lower raw material, packaging and energy cost, as well as (iii) product range expansion. Wellspire is valued by pegging its FY23f EPS of 1.8 sen to 15x PE, leading to a FV of RM0.27.