Thematic Investing: Visit Malaysia 2007

One of the popular investment is investing based on themes and one of the current most talked about theme is the Visit Malaysia 2007 (WM2007).

Hence, I was not suprised to see a lot of write-ups made in the financial media.

One of them was posted on BTimes today: Latest: UBS raises target price for IGB, KLCC Property

Dugged out some recent article...

VMY2007 cheer for transport players

By Hamisah Hamid

bt@nstp.com.my

December 28 2006

THE Visit Malaysia Year 2007 (VMY2007) campaign is expected to generate RM5.4 billion revenue receipt for the transportation sector, with the main beneficiaries being stocks like Malaysian Airline System Bhd (MAS), AirAsia Bhd and Malaysia Airports Holdings Bhd (MAHB).

Other stocks mentioned in a Star Biz article was Resorts World, Shangri-la and Reliance Pacific.

And in another BTimes article..

VMY2007 seen as money-spinner for Nestle

By Hamisah Hamid

hamisahhamid@nstp.com.my

January 2 2007

GIANT food and drink producer Nestle (M) Bhd is expected to gain from the higher consumption of food and beverages as a result of higher growth in tourist arrivals in conjunction with Visit Malaysia Year 2007 (VMY2007).

And the article went on to say:

The stock offers a total return of 15.2 per cent, including dividend yield.

TA Securities maintains a "buy" call on Nestle with a target price of RM26.45.

and..

TA Securities said Starhill- REIT and KLCC Property Holdings Bhd are likely to enjoy higher income due to increase in average retail sales.

Starhill-REIT owns three properties located along the "Bintang Walk" in Kuala Lumpur namely, Starhill Gallery, Lot 10 shopping centre and JW Marriot Hotel.

And the Edge reported the following:

Aseambankers: VMY 2007 to boost transport, retail, hotel & telcos
Visit Malaysia Year 2007 (VMY 2007) will boost the earnings of transport operators, retail outlets, hotels and telecommunications as 20.1 million visitors are expected to throng the country throughout the year, said Aseambankers Research.

In a research note on Jan 12, it picked Malaysia Airlines Systems Bhd (MAS), Malaysia Airports Holdings Bhd (MAHB), AirAsia Bhd and KBES Bhd as the winners in the transportation sector.

Its pick in the telecommunication sector was DiGi.Com Bhd, Maxis Communications Bhd and Telekom Malaysia Bhd on the back of higher international connection fees.

Discount calls providers Redtone International Bhd and Time dotCom Bhd were also expected to see earnings growth, said Aseambankers.

On the retail sector, Aseambankers said fast food operators KFC Holdings Bhd and QSR Brands Bhd, and AEON Co (M) Bhd would benefit from the tourists buying spree.

Other beneficiaries are property stocks with exposure to retail such as KLCC Property, KrisAssets, Starhill REIT and Hektar REIT, while Genting Bhd, Resorts World, Sunway City and Pulai Springs would likely enjoy better earnings from higher hotel occupancy rates.

Aseambankers Research said the success of VMY 2007 would have a positive impact on the KLCI, as retailers and short-term traders were expected to continue investing in the stock market.

“Based on the performance of the KLCI in the past one month, the investment outlook will remain positive as the KLCI has not dipped below the 1,050 mid-term support zone due to the strong support from the moving averages.

“The influx of foreign funds is also expected to provide strong support for the KLCI as the market performance in the past three months has been very encouraging,” it said.

Aseambankers added that stocks in the plantation, finance, oil and gas, and government-linked construction that have directly benefited from the recent bullish performance of the KLCI could turn southbound as they were already in the upper band of the overbought region.

“Although we expect these sectors to continue hogging the limelight, our stock picks will also represent sectors that will directly and indirectly benefit from VMY 2007,” it said. Y 2007) will boost the earnings of transport operators, retail outlets, hotels and telecommunications as 20.1 million visitors are expected to throng the country throughout the year, said Aseambankers Research.

In a research note on Jan 12, it picked Malaysia Airlines Systems Bhd (MAS), Malaysia Airports Holdings Bhd (MAHB), AirAsia Bhd and KBES Bhd as the winners in the transportation sector.

Its pick in the telecommunication sector was DiGi.Com Bhd, Maxis Communications Bhd and Telekom Malaysia Bhd on the back of higher international connection fees.

Discount calls providers Redtone International Bhd and Time dotCom Bhd were also expected to see earnings growth, said Aseambankers.

On the retail sector, Aseambankers said fast food operators KFC Holdings Bhd and QSR Brands Bhd, and AEON Co (M) Bhd would benefit from the tourists buying spree.

Other beneficiaries are property stocks with exposure to retail such as KLCC Property, KrisAssets, Starhill REIT and Hektar REIT, while Genting Bhd, Resorts World, Sunway City and Pulai Springs would likely enjoy better earnings from higher hotel occupancy rates.

Aseambankers Research said the success of VMY 2007 would have a positive impact on the KLCI, as retailers and short-term traders were expected to continue investing in the stock market.

“Based on the performance of the KLCI in the past one month, the investment outlook will remain positive as the KLCI has not dipped below the 1,050 mid-term support zone due to the strong support from the moving averages.

“The influx of foreign funds is also expected to provide strong support for the KLCI as the market performance in the past three months has been very encouraging,” it said.

Aseambankers added that stocks in the plantation, finance, oil and gas, and government-linked construction that have directly benefited from the recent bullish performance of the KLCI could turn southbound as they were already in the upper band of the overbought region.

“Although we expect these sectors to continue hogging the limelight, our stock picks will also represent sectors that will directly and indirectly benefit from VMY 2007,” it said.

Hope this posting has helped giving you some ideas. However, I urge you to do some serious research and most of all reason out your reasonings before making any investment decisions.

Cheers!