RHB Banking Group hosted a selection of under-researched companies listed on Bursa Malaysia at the inaugural RHB Small Cap Corporate Access webinar recently to allow investors the opportunity to hone in on the investment potential of small cap companies.
The two-day webinar featured 20 small cap companies with a market capitalisation of below US$1 billion, covering various industries including renewable energy, electronics, public transportation services, construction services, and technology and innovation.
Knowledge sharing sessions by leading industry experts also provided insights and views for the benefit of approximately 150 institutional investors who attended the virtual event from across the region.
“This RHB Small Cap Corporate Access webinar provides investors and small cap companies an interactive and intimate platform to share in-depth insights, which would be more challenging through a written research report. In addition, knowledge-sharing sessions by leading industry experts further add depth to discussions over the two days. We look forward to hosting more webinars such as these to continue highlighting investment opportunities in such niche segments,” Robert Huray, Chief Executive Officer of RHB Investment Bank (“RHBIB”) said.
“Small cap companies remain an attractive segment for investors due to their agility in addressing volatile market sentiments. With many bigger companies being re-rated significantly from the cyclical recovery angle, chances of finding winners in the new norm post Covid-19 is higher for smaller and nimbler companies, especially those with an outstanding ESG rating,” he added.
Further supporting the potential outsize gain in the small-mid cap space, is the surge in liquidity driven mainly by record level retail participation.
Retail investors rely heavily on online trading platforms to invest and are driven to look for higher return investments due to the low interest rate environment, stemming from the current Covid-19 situation.
“Information is power and getting it speedily and accurately is of utmost importance in making today’s business decision. The webinar was such a platform,” said guest speaker, Lee Kah Choon, Director of Invest Penang with reference to the access provided by RHB to investors and companies alike through the webinar.
The webinar precedes the launch of RHB’s 17th edition of the Top 20 Malaysia Small Cap Companies Jewel 2021, which forms part of the larger RHB Regional Small Cap Compendium that annually lists stock investment ideas from RHBIB’s research teams in Malaysia, Indonesia, Singapore and Thailand.
By end-January 2021, RHB’s Top 20 Jewels in 2020 had outperformed both the FBMKLCI and FBMSC by 54 percent and 35 percent, respectively, based on the holding period since May 2020, owing to the stringent selection process on corporate governance, earnings growth potential and industry fundamentals.