Research Repository

CMDF-BURSA RESEARCH SCHEME (CBRS)

Research providers in Malaysia typically cover only the top 100 stocks listed on Bursa Malaysia. Listed companies which receive little or no research coverage are likely to be negatively impacted as they would not appear on investors’ radar.

To address this issue, the CMDF-Bursa Research Scheme (CBRS) was launched in June 2005 to facilitate the development and usage of equities research in the Malaysian capital market. CBRS is a joint effort between Bursa Malaysia and the Capital Market Development Fund (CMDF) where Bursa Malaysia serves as the Administrator, while CMDF subsidises 50% of the cost of coverage.

Beneficiaries

1. Investors
   • FREE access to research reports leading to informed investment decisions
     
     
2. Listed Companies
   • Increased profile with quality coverage provided by licensed professional analysts
   • Increased investor confidence through a well-informed investment community
     
     
3. Research Companies
   • Builds up pool of research analysts and deepens sector expertise with coverage of participating companies from diversified industries
   • Cost of research coverage is defrayed through economies of scale

Independence and integrity of CBRS is achieved as allocation of participating listed companies to research houses is carried out by Bursa Malaysia, after considering sector expertise and conflicts of interest. Furthermore Bursa Malaysia does not receive revenue from CMDF for its role in providing administrative support and facilitating distribution of the research reports generated.

CBRS Participants

Participating Research Companies

1. Alliance Research Sdn Bhd
2. Asia Analytica Sdn Bhd
3. CIMB Investment Bank Bhd
4. Mercury Securities Sdn Bhd
5. Netresearch-Asia Sdn Bhd
6. TA Securities Holdings Bhd
7. Wilson and York Sdn Bhd
8. ZJ Advisory Sdn Bhd

CBRS Framework

1. Eligibility
   CBRS is open to the following, subject to the approval of Bursa Malaysia:
   • All companies listed on Bursa Malaysia are eligible to participate. Listed companies will pay a total fee of RM16,800 (including service tax) where they will receive research coverage for a period of two years.
   • Research companies licensed as Investment Advisors under the Capital Market Securities Act (CMSA) 2007.
     
     
2. Research Report Frequency
   The frequency of the research coverage takes into account developments and events that would impact the participating company’s financial position, liquidity and prospects of the company including, amongst others, material acquisitions / divestments of assets, change in business direction, change in management team, takeover of the company, etc.
   
   At minimum, the research company is required to produce the following reports for each of the participating listed company allocated to them during the two-year period:
   • One Initiation of Coverage Report within three months from commencement date
   • At least eight Coverage of Results Reports, corresponding to the listed company’s quarterly results and full year results announcements
   • At least two Update Reports per year issued at the discretion of the research company
     
     
3. Research Report Content
   The quality of reports issued will be of similar standard to those that the research companies currently issue on their own. Analysts will exercise industry knowledge and professional judgment when producing research reports. Standard content for the types of reports are as follows:
   • Initiation of Coverage Report
     • Background of listed company, which may include description of its history, business, product and / or market segments
     • Discussion of risk factors surrounding the company
     • Analysis of the company’s recent financials including the balance sheet, profit and loss, cashflow statements and the analysts forecast or estimates
     • Analysis of the listed company against selected listed comparables
     • Valuation and recommendation
       
   • Coverage of Results Report
     • Analysis of results performance
     • Analyst opinion on the outlook of the company
     • Valuation and recommendation
       
   • Update Report
     
     • Description of the event that triggered the report
     • Analysis of the impact or influence of this event on the company’s business prospects
     • Valuation and recommendation

NON-CBRS RESEARCH REPORTS

Bursa Malaysia Research Repository also hosts research reports generated by research companies as part of their normal course of business.

The purpose of including these research reports is to increase the quantity of listed companies covered and to offer diversity in research perspective to the investment community. These research reports are offered FREE to investors who wish to access them.

The non-CBRS research reports are reproduced 'as is' with permission from the research houses and is not reviewed or monitored by Bursa Malaysia. The research companies who contribute their research reports to this platform are licensed as Investment Advisors under the Capital Market Securities Act (CMSA) 2007.

 Licensed Investment Advisors contributing non-CBRS research reports is as follow:

1. Alliance Research Sdn Bhd

Other Investment Advisors interested to contribute their research reports may contact Ms Michelle Tog at +603 2034 7000 or email to michelle@bursamalaysia.com