SYMLIFE (1538)
Formerly known as Bolton Berhad, the company changed its name to Symphony Life Berhad in March 2013 and has been a long time developer of high-end commercial and residential properties with major focus in the Klang Valley market.
The year of 2014 has been a major milestone year for property counters in general with the FBMKLCI Properties Index returning close to 9% YTD. The trend has largely been supported by performance of major property stocks like Mahsing, Sunway, SPSetia, which have been closely tracking the index, whereas the small and mid cap counters have delivered much better returns.
Against the backdrop of major rallies in the small and mid cap property counters, Symlife is among those counters which have been laggards in the previous round of uptick. The counter has merely delivered 2% YTD return based on opening price of RM1.05 during the start of the year and closing price of RM1.07 as of 10th May 2014.
Given the fact that the company has delivered a somewhat satisfactory result in the last quarter's earnings release and with a net tangible asset value at RM1.93, perhaps the share price performance of Symlife could have been better than a mere 2%. Trailing 9-month EPS is at 12.7 cents giving a trailing 9M PE of circa 8 times.
Overall, the property index is expected to outperform the major index FBMKLCI and what this possibly means is that we are perhaps at or close to the end of a major bull market. Year 2014 could be a watershed year for the equities markets and while the bull is taking a rest now amidst the "sell in May and go away" mood, it might be a good time to pick up property laggards like Symlife to position for the next rally in the property index.
Technically Symlife is well positioned to chart new territory of a multi-year high price range of RM1.30 - RM2.00. Initial target for the counter would be RM1.40, followed by RM1.80 should the initial price target level is well supported.
Note that Symlife had issued warrants (Symlife-WB) during end of year 2013 and based on observation of relative price performance of the warrant to mother share, it is a good proxy for leveraged play as well.
Disclaimer - Disclaimer - The information/ opinion above is intended for reference / educational purposes only. The information does not constitute investment advice or an offer to invest and is subject to correction, completion and amendment without notice. Caveat emptor is advised.
