BETA

Perretica Markets Review

Weekly Update - Week 29, 2020

This publication is based on information obtained from sources believed to be reliable but we do not make any presentations as to its
accuracy or completeness. Any recommendation contained in this publication does not have any regard to the specific investment objectives,
financial situation and particular needs of any specific addressee. It is published for the assistance of recipients but it is not to be relied upon
as authoritative or taken in substitution for exercise of judgements by any recipient. This document is not or nor should it be construed as an
offer or a solicitation of an offer to buy or sell any securities mentioned herein. Readers should not assume that recommendations made in
the future will be profitable or will equal performance listed here or recommended in the past. All information and opinions expressed are
subject to change without notice. The publisher, its associates and/or its employees may from time to time have a position in the securities
mentioned in any issue.

www.perretica.com/marketsreview 1
Perretica Markets Review - Week 29, 2020
BETA Equities

Fickle Bulls
Fickle Bears
Markets ended the week higher
by 0.3% to 0.6%.

www.perretica.com/marketsreview 2
Perretica Markets Review - Week 29, 2020
BETA Equities

Prev Price Weekly YTD

This Week Most Active Rank
1
Week
1
Name
PDZ Holdings
(RM)
0.140
Change
-31.7%
Change
366.7%
2 n/a XOX 0.150 130.8% 275.0%
By Volume 3 11 Pegasus Heights 0.025 66.7% 150.0%
4 n/a Lambo Group 0.040 100.0% 0.0%
● XOX - See YTD Top Gainer. 5 6 MQ Technology 0.110 37.5% 340.0%
● Lambo - Proposed private placement up to 30% of total 6 3 DGB Asia 0.065 44.4% -43.5%
7 n/a Netx Holdings 0.010 -33.3% -50.0%
number of issued shares to grow its ecommerce and last 8 n/a JCY International 0.490 40.0% 55.6%
mile delivery business in Malaysia with a budget of RM35mil. 9 5 Anzo Holdings 0.130 -33.3% 420.0%
10 7 AT Systematization 0.075 -16.7% 87.5%
● Netx - Proposed consolidation of its shares and rights 11 16 Vsolar Group 0.040 -27.3% 0.0%
issuance with free warrants for the purpose of growing its 12 2 Iris Corporation 0.240 -14.3% 71.4%
13 8 Fintec Global 0.090 -5.3% 63.6%
GemSpot F&B mobile application. 14 4 Trive Property 0.010 0.0% 0.0%
● JCY - Its director announced interest to buy/sell shares prior 15 n/a Careplus Group 1.810 21.5% 1,031%
16 23 Comfort Gloves 3.900 8.3% 393.7%
to its Q3 results. 17 22 Sanichi Technology 0.075 0.0% 50.0%
● Careplus, Supermax - Both companies hit new highs as 18 n/a Vivocom Intl 0.035 -12.5% 133.3%
19 10 Dagang Nexchange 0.245 -2.0% -7.5%
glove makers continue to be 2020 best thematic play. 20 12 Eduspec Holdings 0.020 0.0% -20.0%
● Vivocom - No apparent reason, short term bet. 21 15 MLabs Systems 0.055 10.0% 37.5%
22 18 Hubline 0.080 6.7% 60.0%
● ConnectCounty - Its froth continues to diffuse following 23 n/a ConnectCounty 0.125 -51.9% 38.9%
confirmation of S5 Holdings’ RTO of Ancom Logistics. 24 n/a Supermax 17.70 30.0% 1,173%
25 25 Key Alliance 0.080 6.7% 128.6%
www.perretica.com/marketsreview 3
Perretica Markets Review - Week 29, 2020
BETA Equities

Prev Price Weekly YTD

This Week Most Active Rank
1
Week
1
Name
Supermax
(RM)
17.70
Change
30.0%
Change
1,173%
2 2 Top Glove 22.98 4.8% 388.9%
By Value 3 3 Comfort Gloves 3.90 8.3% 393.7%
4 4 Hartalega 17.10 0.2% 212.0%
● JCY - As per previous page. 5 5 Kossan Rubber 13.50 9.0% 224.5%
● XOX - See YTD Top Gainer. 6 10 Careplus Group 1.81 21.5% 1,031%
7 6 PDZ Holdings 0.14 -31.7% 366.7%
● VS Industry - Market’s positive sentiment of the EMS 8 14 Bursa Malaysia 9.15 9.6% 50.2%
provider ability to improve its business as shares got traded 9 n/a JCY International 0.49 40.0% 55.6%
10 19 Rubberex 3.57 0.8% 561.1%
up. 11 7 Public Bank 18.28 -1.2% -6.0%
● HLT Global - Saw active trading again with gloves being the 12 11 Maybank 7.94 0.5% -8.1%
13 12 Tenaga Nasional 11.54 1.6% -13.0%
hottest cakes in the market. 14 n/a XOX 0.15 130.8% 275.0%
● Frontken, Foundpac - Market interest in the technology 15 n/a VS Industry 1.26 18.9% -6.0%
16 n/a HLT Global 0.70 2.9% 288.9%
thematic play continue to increase. 17 n/a Foundpac Group 1.04 13.0% 33.3%
● Adventa, Genting - Covid19 related plays on both ends of 18 18 MYEG Services 1.48 1.4% 34.5%
19 16 Green Packet 0.505 -14.4% -26.8%
the spectrum. 20 15 Dialog Group 3.84 -1.0% 11.3%
21 17 CIMB Group 3.61 -5.2% -29.9%
22 n/a Adventa 1.70 2.4% 183.3%
23 9 Iris Corporation 0.24 -14.3% 71.4%
24 n/a Genting 4.06 -0.7% -32.9%
25 n/a Frontken 3.36 6.7% 46.7%
www.perretica.com/marketsreview 4
Perretica Markets Review - Week 29, 2020
BETA Equities

Prev Price Weekly YTD

YTD Top Gainers Rank
1
Week
1
Name
Supermax
(RM)
17.70
Change
30.0%
Change
1,173%
2 2 Careplus Group 1.81 21.5% 1,031%
By % Change 3 n/a Ancom Logistics 0.425 400.0% 608.3%
4 6 Euro Holdings 1.10 2.8% 566.7%
● Winners continue to win. 5 5 Rubberex 3.57 0.8% 561.1%
● Sinotop, ConnectCounty, Lotus KFM, ES Ceramics - 6 7 Asia Poly Holdings 0.325 8.3% 441.7%
7 3 Anzo Holdings 0.130 -33.3% 420.0%
Dropped off with share prices decrease over the week. 8 9 Comfort Gloves 3.90 8.3% 393.7%
● Ancom Logistics - Reverse takeover by S5 Holdings. 9 8 Top Glove 22.98 4.8% 388.9%
10 4 PDZ Holdings 0.14 -31.7% 366.7%
● XOX - Micro-finance partnership with Wetek Technology, as 11 14 MQ Technology 0.11 37.5% 340.0%
XOX attempts to move away from the highly competitive and 12 10 Ho Wah Genting 0.43 -8.5% 309.5%
13 11 LKL International 0.535 -4.5% 296.3%
commoditised telco sector into fintech. 14 13 HLT Global 0.70 2.9% 288.9%
● Daya Materials - A PN17 Oil and Gas company attempting 15 n/a XOX 0.15 130.8% 275.0%
16 12 Minetech Resources 0.30 -7.7% 252.9%
to rise from the ashes on news of its debt restructuring. 17 27 Kossan Rubber 13.50 9.0% 224.5%
● Inix Technologies - 3 shareholders who claims to 18 15 Hartalega 17.10 0.2% 212.0%
19 21 Pan Malaysia Holdi... 0.245 8.9% 206.3%
collectively hold 10% of the company filed a requisition to 20 n/a Daya Materials 0.015 50.0% 200.0%
remove its director, Mohd Anuar Bin Mohd Hanadzlah. 21 22 Adventa 1.70 2.4% 183.3%
22 n/a Inix Technologies 0.140 47.4% 180.0%
● AppAsia - Share price rebounded while its director disposed 23 23 MNC Wireless 0.055 0.0% 175.0%
stakes in the company. 24 19 Kejuruteraan Asast.. 1.06 -3.6% 174.6%
25 n/a App Asia 0.38 22.6% 171.4%
www.perretica.com/marketsreview 5
Perretica Markets Review - Week 29, 2020
BETA Equities

Prev Price Weekly YTD

YTD Top Losers Rank
1
Week
1
Name
Icon Offshore
(RM)
0.115
Change
-4.2%
Change
-95.4%
2 2 London Biscuits 0.020 0.0% -81.0%
By % Change 3 3 Securemetric 0.110 0.0% -79.6%
4 4 Vertice 0.205 13.9% -76.4%
● Losers continue to lose. 5 5 Scomi Energy 0.110 -4.3% -68.6%
● DGB Asia, TH Plantations, Boustead Plantations, Jaya 6 7 PRG Holdings 0.190 -9.5% -68.3%
7 6 Brahims Holdings 0.100 -4.8% -67.7%
Tiasa - Dropped off with share prices increase over the 8 8 Vortex Consolidated 0.065 -7.1% -67.5%
week. 9 9 Sapura Energy 0.095 0.0% -64.8%
10 16 Nationwide Express 0.080 -15.8% -64.4%
● Perak Corporation, Impiana Hotels - Returned to the list 11 13 Muhibbah 0.895 -8.7% -63.6%
with share prices decrease over the week. 12 12 Velesto Energy 0.145 -3.3% -61.8%
13 14 Parkson Holdings 0.085 -5.6% -61.4%
● Reach Energy - Its auditor issued an opinion on material 14 10 Permaju Industries 0.320 4.9% -60.7%
uncertainty relating to going concern. 15 17 Bumi Armada 0.220 -2.2% -58.5%
16 15 Wah Seong 0.500 0.0% -58.3%
● Vizione - Loan agreement with Mega Active Investment is 17 n/a Perak Corporation 0.160 -20.0% -57.3%
terminated. Mega Active Investment will no longer convert 18 18 Perdana Petroleum 0.170 0.0% -57.0%
19 20 AirAsia Group 0.735 -5.8% -56.8%
any portion of its loan into shares at RM0.80 per share. The 20 19 MHB 0.390 -1.3% -55.2%
company will repay the loan back to Mega Active Investment 21 n/a Impiana Hotels 0.090 -10.0% -55.0%
22 n/a Reach Energy 0.075 -11.8% -54.5%
on a mutually agreed manner. 23 n/a Vizione Holdings 0.400 -7.0% -54.3%
24 22 Eco World Interna... 0.425 -3.4% -53.8%
25 23 Transnasional 0.040 0.0% -52.9%
www.perretica.com/marketsreview 6
Perretica Markets Review - Week 29, 2020
BETA Equities

Value Investing for the Next Decade See Week 28, 2020
Review on Part 1 - POVI

Part 2 - Contemporary value investing metrics

In times of a global pandemic, cash is king. Cash was always king. Cash should always be king. When investing for the long term, it is
important for investors to focus on the cash elements, instead of just looking at profits or assets. Focus on the free cash flow (FCF) generated
by the business and the cash levels available in the business. (Note: A simplistic view of FCF = operating cash flow less capital expenditure.)

Consider the 2 simplistic scenarios below. Which business will you invest your cash in? Looking for Business A in Bursa Malaysia is the thesis
taken in creating Perretica Contemporary Value Index (PCVI) as the value investing index for the next decade.

Customers Customers
RM40 cash received up RM50 cash
RM100 RM100
front for inventories receivables pending
Cash Cash
sold / pre-ordered collection for
Investment Investment
inventories sold

Business A Shareholders Business B Shareholders

Total RM180 cash RM50 cash paid RM0 cash to be
RM40 deferred cash
to be reinvested for inventories reinvested back into the
payables for
back into the ordered business or paid out in
inventories ordered
business or paid dividends. Debt or
out in dividends additional equity
Suppliers Suppliers investment required.

www.perretica.com/marketsreview 7
Perretica Markets Review - Week 29, 2020
BETA Equities

Perretica Contemporary Value Index (PCVI)

A Bursa Malaysia benchmark for contemporary value investing metrics

● PCVI is tracked from 7 July 2020 onwards, commencing with a value of 10,000.00.
● Selection. PCVI comprises of 10 stocks. These stocks are selected based on their ability to generate Free Cash Flow (FCF).
○ FCF has to be positive for the cumulative last 12 months and for the last 3 years.
○ FCF today is not the result of a decreasing trend over the last few years.
○ Company has to be in a net cash position (Cash > Debt).
○ Companies are ranked and selected based on their market capitalisation to the total FCF generated in the last 5 years.
○ Not purely mechanistic based on financial metrics. An element of intuition is employed to remove companies like Xidelang.
● Weighting. Designed to allow retail investors to DIY the index on their own. All companies are equally weighted as practically as possible
to a rounding of 100 units of shares.
(For less than RM100 in fees, you can set yourselves up with a RM10,000 portfolio mirroring the index using low cost Rakuten brokerage account.)
● Rebalancing. Quarterly, after the first week of the quarter. A single stock cannot make up more than 20% of the total index value. Should
a stock’s price increases to a value more than 20% of the total index value, the stock will be sold proportionally and at a practical
rounding of 100 units of shares with fees incurred in consideration.
● Components Review. Every 6 months. Next reviews on 7 January 2021 and 7 July 2021.

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Perretica Markets Review - Week 29, 2020
BETA Equities

PCVI - Sectors Breakdown

As at 7 July 2020

www.perretica.com/marketsreview 9
Perretica Markets Review - Week 29, 2020
BETA Equities

PCVI - The Current View

10,832.00

9,841.54

www.perretica.com/marketsreview 10
Perretica Markets Review - Week 29, 2020
BETA Equities

PCVI Components
No Stock Name Market Cap Type Sector Price (7 July 2020) Number of shares Value (7 July 2020)
1 APM Automotive Small Cap Industrial 1.70 500 850.00
2 Apollo Food Micro Cap Consumer 3.51 300 1,053.00
3 Hong Leong Industries Mid Cap Consumer 7.96 100 796.00
4 Kotra Industries Small Cap Health Care 2.69 300 807.00
5 Lii Hen Industries Small Cap Consumer 2.73 300 819.00
6 Magni-Tech Industries Small Cap Consumer 2.09 400 836.00
7 Microlink Solutions Micro Cap Technology 0.82 1,000 820.00
8 Public Bank Large Cap Financial Services 17.40 100 1,740.00
9 Power Root Small Cap Consumer 2.31 400 924.00
10 Tong Herr Resources Small Cap Industrial 2.06 400 824.00
Cash 531.00
Total 10,000.00

More detailed analysis of these companies in the

coming weeks. Stay up to date with the latest
rebalancing and component changes, subscribe at

www.perretica.com/marketsreview 11
BETA

Think long term, play the long game

More in coming weeks.
www.perretica.com/marketsreview
This publication is based on information obtained from sources believed to be reliable but we do not make any presentations as to its
accuracy or completeness. Any recommendation contained in this publication does not have any regard to the specific investment objectives,
financial situation and particular needs of any specific addressee. It is published for the assistance of recipients but it is not to be relied upon
as authoritative or taken in substitution for exercise of judgements by any recipient. This document is not or nor should it be construed as an
offer or a solicitation of an offer to buy or sell any securities mentioned herein. Readers should not assume that recommendations made in
the future will be profitable or will equal performance listed here or recommended in the past. All information and opinions expressed are
subject to change without notice. The publisher, its associates and/or its employees may from time to time have a position in the securities
mentioned in any issue.

perretica.info@gmail.com
www.perretica.com/marketsreview 12