This year, RHB’s list of 10 “diamonds” again spans Malaysia, Indonesia and Singapore. Compared to last year’s list, one stock has made a reappearance: Heineken Malaysia.
Throughout RHB’s 10 years of finding “ESG diamonds in the rough”, the firm’s research analysts have maintained a list of core criteria: these listed companies must have increasing margins, a return on equity (ROE) of 15% or higher and a trading price below their respective industry average multiples.
From 2022, these undervalued stocks were required to have an ESG (environmental, social and governance) score above their country medians, based on RHB’s proprietary methodology, which the firm applies as a premium on their respective target prices. RHB also prefers companies with net debt over shareholder funds below 0.7 times.
