On Our Technical Watch

28 May 2021

By Koh Huat Soon I [email protected] Daily technical highlights – (ASTRO, REVENUE) Daily Charting – ASTRO (Trading Buy)

About the Stock: Key Support & Resistance Levels Name Astro Malaysia 52 Week High/Low : 1.15/0.71 Last Price : : RM1.10 Holdings Bhd 3-m Avg. Daily Vol. : 6,133,521 Resistance : RM1.26 (R1) RM1.35 (R2) Bursa Code : ASTRO Free Float (%) : 34.4 Stop Loss : RM0.97

CAT Code : 6399 Beta vs. KLCI : 0.98

Market Cap : RM5,736.0m

Astro Malaysia Holdings Bhd (Trading Buy)

• As Malaysia’s leading content and entertainment company, ASTRO recently launched its third subscription-based video-on- demand streaming service via a strategic partnership with Walt Disney Company to stream Disney+ Hotstar in Malaysia. This new streaming package consists of over 800 films and over 18,000 episodes of popular series, namely from Disney, Marvel, Pixar and Star Wars, which are highly enjoyed by a wide array of viewers.

• We believe that this partnership would enable ASTRO to further grow its subscriber base and contribute to the group’s income stream going forward.

• After posting net profit of RM539.8m (-18% YoY) in FY Jan 2021, consensus is expecting ASTRO to make net profit of RM537m in FY22 and RM570m in FY23, which translate to forward PERs of 10.7x and 10.1x, respectively.

• Chart-wise, ASTRO’s share price has declined from a high of RM2.94 around the end of October 2017 to a low of RM0.705 in March 2020 (-76%) but has gained 24% YTD to close at RM1.10 yesterday.

• Technically speaking, the stock has been treading above the middle band of the Donchian Channel, which signals the presence of steady buying support.

• With the share price plotting higher highs and higher lows from its March 2020 trough, we anticipate the stock will continue its upward trajectory ahead.

• Riding on the positive , our resistance thresholds for ASTRO are set at RM1.26 (R1; 15% upside potential) and RM1.35 (R2; 23% upside potential). • We have set our stop loss price at RM0.97 (or 12% downside risk from the last traded price of RM1.10).

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On Our Technical Watch

28 May 2021

Daily Charting – REVENUE (Trading Buy)

About the Stock: Key Support & Resistance Levels Name Revenue Group 52 Week High/Low : 2.42/1.54 Last Price : : RM1.92 Bhd 3-m Avg. Daily Vol. : 4,452,356 Resistance : RM2.14 (R1) RM2.25 (R2) Bursa Code : REVENUE Free Float (%) : 61.0 Stop Loss : RM1.72

CAT Code : 0200 Beta vs. KLCI : 1.51

Market Cap : RM862.9m

Revenue Group Bhd (Trading Buy)

• REVENUE’s products and services are divided into three segments, namely the deployment of: (i) Electronic Data Capture (EDC) terminals, (ii) electronic transaction processing, and (iii) solutions and services related to payments infrastructure.

• The group is positioned uniquely with clients from various industries ranging from banks, non-bank institutions, physical store merchants, online store merchants and e-money payment schemes.

• Hence, REVENUE is poised to capture the fast-growing electronic payments market in Malaysia, riding on the vision of the government’s Malaysia Digital Economy (MyDigital) blueprint to go cashless by 2022.

• The group’s 2QFY21 net income rose to RM4.0m (+17% QoQ), taking the first half’s net profit to RM6.1m, down 3.1% YoY.

• On the chart, the stock has pulled back from RM2.38 at the end of April before closing at RM1.92 yesterday.

• Following the slide, the stock could bounce up ahead as the RSI reverses from the oversold area.

• Further, after rising from a recent low of RM1.71, the positive price momentum will likely continue given the current ADX reading of above 20 (which measures the strength of the trend).

• With that, the stock could advance to challenge our resistance targets of RM2.14 (R1; 11% upside potential) and RM2.25 (R2; 17% upside potential).

• Our stop loss price is set at RM1.72 (or 10% downside risk from yesterday’s close of RM1.92).

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On Our Technical Watch

28 May 2021

STOCK CALL MONITOR* Upside Risk to Highest Lowest Target Price Stop Loss Downside Issue Date Price @ ID Potential @ Reward Price Price Last Price Date Status Stock Name Rating (TP) Price (SL) Risk @ ID Status^ (ID) ID Ratio since ID since ID Fulfilled RM RM RM % % RM RM RM HIBISCUS PETROLEUM BHD 28/4/2021 Trading Buy 0.63 0.71 0.56 13% -11% 1.14x 0.69 0.59 0.63 Open BUMI ARMADA BERHAD 28/4/2021 Trading Buy 0.40 0.45 0.36 13% -10% 1.25x 0.47 0.39 0.44 TP Hit 10/5/2021 SERBA DINAMIK HOLDINGS BHD 30/4/2021 Trading Buy 1.66 1.85 1.47 11% -11% 1.00x 1.69 1.57 1.61 Open UCHI TECHNOLOGIES BHD 30/4/2021 Trading Buy 3.18 3.52 2.86 11% -10% 1.06x 3.22 2.92 3.10 Open PROLEXUS BHD 4/5/2021 Trading Buy 1.14 1.30 1.02 14% -11% 1.33x 1.14 0.95 1.01 SL Hit 6/5/2021 UEM EDGENTA BHD 4/5/2021 Trading Buy 1.80 2.03 1.62 13% -10% 1.28x 2.00 1.68 1.78 Open DUTALAND BHD 5/5/2021 Trading Buy 0.41 0.46 0.37 14% -9% 1.57x 0.43 0.38 0.39 Open KIM LOONG RESOURCES BHD 5/5/2021 Trading Buy 1.53 1.70 1.37 11% -10% 1.06x 1.59 1.42 1.47 Open POH KONG HOLDINGS BHD 6/5/2021 Trading Buy 0.81 0.89 0.73 11% -9% 1.13x 1.17 0.79 0.91 TP Hit 17/5/2021 NTPM HOLDINGS BHD 6/5/2021 Trading Buy 0.60 0.69 0.54 15% -10% 1.50x 0.64 0.55 0.58 Open KAWAN FOOD BHD 7/5/2021 Trading Buy 2.15 2.40 1.90 12% -12% 1.00x 2.18 1.86 1.94 SL Hit 21/5/2021 UZMA BHD 7/5/2021 Trading Buy 0.71 0.78 0.64 11% -10% 1.07x 0.75 0.60 0.65 SL Hit 21/5/2021 CCK CONSOLIDATED HOLDINGS BH 11/5/2021 Trading Buy 0.68 0.77 0.60 13% -12% 1.13x 0.71 0.63 0.66 Open MMS VENTURES BHD 11/5/2021 Trading Buy 0.85 0.97 0.75 15% -11% 1.32x 0.88 0.82 0.85 Open MALAYSIAN BULK CARRIERS BHD 12/5/2021 Trading Sell 0.72 0.61 0.81 15% -13% 1.22x 0.75 0.56 0.64 TP Hit 20/5/2021 HPMT HOLDINGS BHD 12/5/2021 Trading Sell 0.61 0.51 0.68 16% -12% 1.27x 0.60 0.52 0.58 Open YTL CORP BHD 18/5/2021 Trading Buy 0.68 0.77 0.61 13% -10% 1.29x 0.72 0.67 0.67 Open YONG TAI BHD 18/5/2021 Trading Buy 0.26 0.30 0.21 18% -18% 1.00x 0.27 0.23 0.24 Open PESTECH INTERNATIONAL BHD 19/5/2021 Trading Buy 1.10 1.26 0.98 15% -11% 1.33x 1.11 0.96 1.04 SL Hit 21/5/2021 GUAN CHONG BHD 19/5/2021 Trading Buy 2.81 3.18 2.52 13% -10% 1.28x 2.83 2.62 2.80 Open LAGENDA PROPERTIES BHD 20/5/2021 Trading Buy 1.24 1.48 1.06 19% -15% 1.33x 1.41 1.15 1.37 Open DRB-HICOM BHD 20/5/2021 Trading Buy 1.79 2.09 1.56 17% -13% 1.30x 1.94 1.74 1.94 Open MI TECHNOVATION BHD 21/5/2021 Trading Buy 3.12 3.59 2.71 15% -13% 1.15x 3.37 3.05 3.11 Open PENTAMASTER CORP BHD 21/5/2021 Trading Buy 4.60 5.19 4.03 13% -12% 1.04x 4.92 4.44 4.73 Open GLOBETRONICS TECHNOLOGY BHD 25/5/2021 Trading Buy 2.08 2.46 1.80 18% -13% 1.36x 2.14 2.05 2.12 Open DIALOG GROUP BHD 25/5/2021 Trading Buy 2.88 3.20 2.62 11% -9% 1.23x 3.02 2.88 3.02 Open KELINGTON GROUP BHD 27/5/2021 Trading Buy 2.01 2.29 1.76 14% -12% 1.12x 2.03 2.00 2.01 Open TOMYPAK HOLDINGS 27/5/2021 Trading Buy 0.56 0.63 0.50 13% -11% 1.17x 0.59 0.57 0.57 Open

* Tracks our stock recommendations on a one-month rolling basis from issue date. Stock names will drop out from the list after one month from issue date regardless of their status. ^ Status will be categorised as either:(i) "TP hit" when stock reaches target price first OR (ii) "SL hit" when stock touches stop loss first OR (iii) "Open" when neither TP nor SL has been hit.

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On Our Technical Watch

28 May 2021

Technical Terms:

Reversal Candlesticks Patterns Description Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted Dragonfly Doji (Bullish) cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and Gravestone Doji (Bearish) sellers. Engulfing Pattern A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action. Hammer (Bullish) Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend. Shooting Star (Bearish) In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the except that it is bearish. Inverted Hammer (Bullish) The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted Hanging Man (Bearish) lollipop. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. Harami The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour. Harami Cross The Harami Cross is similar to the Harami. The difference is that the last day is a Doji. A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both.

Morning Doji Star (Bullish) A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a middle Evening Doji Star (Bearish) candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day. Spinning Top Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision.

Source: Various

Common Chart Patterns Inverted Head & Shoulders Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Double Top (Bearish) Double Bottom (Bullish)

(Bullish) Bearish)

ReversalPatterns

Symmetrical Ascending Triangle Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish)

(Bullish/ Bearish) (Bullish) ContinuationPatterns

Source: Various

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Published and printed by:

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