MIDCAP-Star Publications, Berjaya Sports lead Malaysia consumer discretionary

Wed Aug 1, 2012 3:06am EDT

Malaysia's Star Publications and Berjaya Sports Toto Berhad emerge as strong performers on earnings metrics among 19 firms in the country's consumer discretionary sector, data from Thomson Reuters StarMine shows.

The data includes firms tracked by at least three analysts.

The firms have Earnings Quality scores of 95 each, the highest in the sector.

Star and Berjaya also have high SmartHoldings scores of 90 and 83 respectively.

Berjaya's free cashflow as a percentage of sales and forward 12 month P/E ratio beat the industry average by 5 percent and 6 percent respectively.

Of the 18 analysts covering Berjaya Sports, 10 give it a strong buy or buy, seven have a hold and one rates it a sell. The stock is trading at 82 percent of its intrinsic value of 5.20 ringgit.

On the other hand, Star Publications' free cashflow as a percentage of sales beats the industry average by 7.9 percent, but its Forward 12-month P/E ratio lags the industry average by 35 percent.

Of the 11 analysts tracking the stock, two have a strong buy, seven rate it a hold and two recommend a sell or strong sell. The stock is currently trading at 69 percent of its intrinsic value of 4.62 ringgit.

Berjaya Sports is up 1.66 percent and Star Publications is down just under 1 percent over the past week, while the broader index is largely unchanged for the same period, as of Tuesday's close.

At the other end of the spectrum, MBM Resources lags the sector on earnings quality with a score of 6.

CONTEXT:

A high score on StarMine's Earnings Quality model signals strong earnings sustainability over the next 12 months based on the company's past operating performance.

StarMine's SmartHoldings model is a global stock selection model that ranks stocks based on expected future increase or decrease in institutional ownership. (Reporting By Reshma Apte; Editing by Sunil Nair)