PETALING JAYA: RHB Research has unveiled the top 20 Malaysian small-cap “jewels” for 2024 across nine sectors, with 16 of the stocks listed on the Main Market.
Four technology stocks are part of the list. These are Oppstar Bhd , Cloudpoint Technology Bhd , QES Group Bhd and TT Vision Holdings Bhd .
Under the industrial products and services sector, five counters are featured – AWC Bhd , Engtex Group Bhd , MCE Holdings Bhd , Supercomnet Technologies Bhd and YBS International Bhd .
As for the construction sector, Inta Bina Group Bhd , Kimlun Corp Bhd and Muhibbah Engineering (M) Bhd are featured.
The list of 20 “jewels” also include three stocks in the consumer products and services space – Ablegroup Bhd , Karex Bhd and Shangri-La Hotels (M) Bhd .
The other counters on the list are New Hoong Fatt Holdings Bhd (auto and autoparts); PA Resources Bhd (basic materials); UMediC Group Bhd (healthcare); Deleum Bhd (oil and gas) and Avaland Bhd (real estate).
RHB Research said the top 20 small-cap stock picks boast an average market capitalisation of RM545mil and a return on equity of 11.2%.
It also noted that the previous 2023 edition of the Top 20 Small-Cap Jewels had outperformed the broad market, delivering a holding period return of 46.4% and outperforming the FBM KLCI and FBM Small Cap’s returns of 13% and 21.4%, respectively.
“The past year has been marked by unprecedented challenges yet, amid the economic uncertainties and geopolitical tensions, the resilience of the capital market has shone through.
“Against the backdrop of a better economic outlook in 2024, a stable political environment, accompanied by stronger fund flows into the emerging markets amidst the peak of the US Federal Funds rate, domestic-listed stocks have undergone a remarkable rally – leading Malaysia to emerge as one of the best-performing markets in Asean,” it said.