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On Our Technical Watch

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On Our Technical Watch On Our Technical Watch 11 June 2021 By Lim Khai Xhiang l [email protected] Daily technical highlights – (KERJAYA, TECHBND) Daily Charting – KERJAYA (Trading Buy) About the Stock: Key Support & Resistance Levels Name Kerjaya Prospek 52 Week High/Low : 1.53/0.89 Last Price : RM1.23 : Group Bhd 3-m Avg. Daily Vol. : 2,068,586 Resistance : RM1.38 (R1) RM1.48 (R2) Bursa Code : KERJAYA Free Float (%) : 15% Stop Loss : RM1.10 CAT Code : 7161 Beta vs. KLCI : 1.0 Market Cap : RM1,522.0m Kerjaya Prospek Group Berhad (Trading Buy) • KERJAYA is principally involved in the construction of high-end commercial and high-rise residential buildings, property development and the manufacturing of lighting and kitchen solutions. • In FY20, the Group’s revenue fell 23% to RM811m and core net profit dropped 40% to RM90m. Its 1QFY21 results – with revenue of RM269m (+8% QoQ; +27% YoY) and core net profit of RM26m (-5% QoQ; +1% YoY) – were below expectations, affected by margin squeeze mainly due to elevated steel costs. • Still, looking ahead, consensus is expecting KERJAYA’s net profit to grow by 39% and 28% to RM125m and RM161m in FY21 and FY22, respectively. This translates to forward PERs of 12.2x this year and 9.5x next year respectively, compared to the 5-year historical mean of 12.3x. • Technically speaking, from a peak of RM1.53 in mid-April, the stock fell (likely due to renewed fears of economic lockdowns) to as low as RM1.08. • Following which, in mid-May, the stock found support at the 50% Fibonacci retracement level of RM1.19. At the same time, the formation of a large hammer candlestick shows the strong rejection of lower prices, which subsequently paved the way for the stock to extend its higher lows trend. • Since then, the stock has continued to trend higher. With the MACD indicator currently showing strengthening upward momentum, we believe the share price could potentially challenge our resistance levels of RM1.38 (R1; 12% upside potential) and RM1.48 (R2; 20% upside potential). • We have pegged our stop loss price at RM1.10 (11% downside risk). PP7004/02/2013(031762) Page 1 of 4 On Our Technical Watch 11 June 2021 Daily Charting – TECHBND (Trading Buy) About the Stock: Key Support & Resistance Levels Name : Techbond Group Bhd 52 Week High/Low : 0.87/0.30 Last Price : RM0.50 Bursa Code : TECHBND 3-m Avg. Daily Vol. : 2,094,898 Resistance : RM0.56 (R1) RM0.61 (R2) Free Float (%) : 15% Stop Loss : RM0.45 CAT Code : 5289 Beta vs. KLCI : 1.3 Market Cap : RM264.7m Techbond Group Berhad (Trading Buy) • TECHBND is a manufacturer of industrial adhesives with manufacturing facilities in Malaysia and Vietnam, serving customers in Asia, Africa and the Middle East. Its industrial adhesives are used in a variety of products, including wood-based products, paper and packaging products, cigarettes and cigarette packs, automotive applications, personal care products, mattresses as well as building and construction applications. • In FY20, TECHBND’s revenue fell 12% to RM71m attributable to: (i) weaker demand from local manufacturers, particularly from the wood-working industry, and (ii) disrupted global supply chain due to the US-China trade war. Despite the decline in revenue, net profit rose by 52% to RM10.7m, as lower material costs and stable ASPs led to improved profit margins. • Continuing the rising earnings momentum, in the quarter ended 31 March 2021, TECHBND achieved revenue of RM21.6m (- 8.9% QoQ; +26.3% YoY) and net profit of RM3.8m (+50% QoQ; + 51.5% YoY). • Moving forward, TECHBND will continue to focus on its expansion plans to cater for the robust overseas and domestic demand across its business segments. • Technically speaking, from a peak of RM0.87 in early-February this year, the stock has subsequently fallen by 49% before bottoming at RM0.44 early this month when it bounced off the 61.8% Fibonacci retracement level. • The emergence of the rounding bottom pattern, coupled with yesterday’s formation of a large green candlestick, indicate the resurgence of positive momentum. • With the MACD indicator also showing strengthening upward momentum, an anticipated rise in the share price could challenge our resistance levels of RM0.56 (R1; 12% upside potential) and RM0.61 (R2; 22% upside potential). • We have pegged our stop loss price at RM0.45 (10% downside risk). PP7004/02/2013(031762) Page 2 of 4 On Our Technical Watch 11 June 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 CCK CONSOLIDATED HOLDINGS BH 11/05/2021 Trading Buy 0.66 0.77 0.60 17% -9% 1.88x 0.69 0.62 0.64 Open MMS VENTURES BHD 11/05/2021 Trading Buy 0.85 0.97 0.75 15% -11% 1.32x 0.88 0.82 0.86 Open MALAYSIAN BULK CARRIERS BHD 12/05/2021 Trading Sell 0.72 0.61 0.81 15% -13% 1.22x 0.75 0.56 0.65 TP Hit 20/05/2021 HPMT HOLDINGS BHD 12/05/2021 Trading Sell 0.60 0.51 0.68 15% -13% 1.15x 0.60 0.52 0.57 Open YTL CORP BHD 18/05/2021 Trading Buy 0.68 0.77 0.61 13% -10% 1.29x 0.72 0.67 0.67 Open YONG TAI BHD 18/05/2021 Trading Buy 0.26 0.30 0.21 18% -18% 1.00x 0.32 0.23 0.26 TP Hit 04/06/2021 PESTECH INTERNATIONAL BHD 19/05/2021 Trading Buy 1.10 1.26 0.98 15% -11% 1.33x 1.11 0.96 1.03 SL Hit 21/05/2021 GUAN CHONG BHD 19/05/2021 Trading Buy 2.81 3.18 2.52 13% -10% 1.28x 2.89 2.62 2.89 Open LAGENDA PROPERTIES BHD 20/05/2021 Trading Buy 1.24 1.48 1.06 19% -15% 1.33x 1.41 1.15 1.28 Open DRB-HICOM BHD 20/05/2021 Trading Buy 1.79 2.09 1.56 17% -13% 1.30x 1.94 1.74 1.79 Open MI TECHNOVATION BHD 21/05/2021 Trading Buy 3.12 3.59 2.71 15% -13% 1.15x 3.37 2.99 3.13 Open PENTAMASTER CORP BHD 21/05/2021 Trading Buy 4.60 5.19 4.03 13% -12% 1.04x 4.92 4.44 4.55 Open GLOBETRONICS TECHNOLOGY BHD 25/05/2021 Trading Buy 2.08 2.46 1.80 18% -13% 1.36x 2.23 2.01 2.14 Open DIALOG GROUP BHD 25/05/2021 Trading Buy 2.88 3.20 2.62 11% -9% 1.23x 3.02 2.87 2.94 Open KELINGTON GROUP BHD 27/05/2021 Trading Buy 2.01 2.29 1.76 14% -12% 1.12x 2.15 1.89 2.05 Open TOMYPAK HOLDINGS 27/05/2021 Trading Buy 0.56 0.63 0.50 13% -11% 1.17x 0.59 0.53 0.54 Open ASTRO MALAYSIA HOLDINGS BHD 28/05/2021 Trading Buy 1.10 1.26 0.97 15% -12% 1.23x 1.21 1.03 1.15 Open REVENUE GROUP BHD 28/05/2021 Trading Buy 1.92 2.14 1.72 11% -10% 1.10x 2.02 1.82 1.94 Open MNRB HOLDINGS BHD 01/06/2021 Trading Buy 1.23 1.45 1.04 18% -15% 1.16x 1.42 1.21 1.34 Open SKP RESOURCES BHD 01/06/2021 Trading Buy 1.53 1.70 1.38 11% -10% 1.13x 1.73 1.47 1.64 TP Hit 08/06/2021 SOUTHERN CABLE GROUP BHD 02/06/2021 Trading Buy 0.46 0.52 0.41 13% -11% 1.20x 0.48 0.46 0.47 Open HEITECH PADU BHD 02/06/2021 Trading Buy 1.23 1.41 1.09 15% -11% 1.29x 1.58 1.25 1.34 TP Hit 02/06/2021 ADVANCECON HOLDINGS BHD 03/06/2021 Trading Buy 0.37 0.45 0.33 20% -12% 1.67x 0.37 0.36 0.37 Open THREE-A RESOURCES BHD 03/06/2021 Trading Buy 0.89 1.01 0.79 13% -11% 1.20x 0.90 0.85 0.85 Open FRONTKEN CORP BHD 04/06/2021 Trading Buy 3.10 3.60 2.63 16% -15% 1.06x 3.08 2.84 2.93 Open PRESTAR RESOURCES BHD 04/06/2021 Trading Buy 1.18 1.37 1.00 16% -15% 1.06x 1.22 1.12 1.17 Open KRONOLOGI ASIA BHD 09/06/2021 Trading Buy 0.67 0.77 0.57 16% -14% 1.11x 0.68 0.66 0.67 Open MALAYSIA BUILDING SOCIETY 09/06/2021 Trading Buy 0.65 0.73 0.58 12% -11% 1.14x 0.66 0.64 0.64 Open K-ONE TECHNOLOGY BHD 10/06/2021 Trading Buy 0.30 0.36 0.25 20% -17% 1.20x 0.33 0.31 0.31 Open GAMUDA BHD 10/06/2021 Trading Buy 3.11 3.45 2.86 11% -8% 1.36x 3.17 3.11 3.14 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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