Examples of consumer stocks with potential, Pong Teng Siew, head of research, Inter-Pacific Securities said, are Ajinomoto; Tien Wah (makes boxes for cigarettes and is trading below its net tangible asset); and Canone (which is riding on its unit Kian Joo). Export-oriented companies like Prolexus and Magnitech, which manufacture for Nike in the US, are doing well; they enjoy steady earnings and are cash rich.
SELECTIVE small cap consumer stocks seem to be weathering the weak sentiment on the Kuala Lumpur stock market quite well as they represent resilient stock picks for the longer term.
“The retail sector is a bit dampened by the implementation of the goods and services tax (GST),’’ said Pong Teng Siew, head of research, Inter-Pacific Securities. “It may be time to look at selective consumer stocks when it is not hot.’’
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