Jan 28, 2016

AirAsia X - Technical Buy

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Stock Code: 5238    52 Week High: 0.690      52 Week Low: 0.150

airasia x target price

airasia x chart analysis

Resistance level broken. After sliding on a downtrend, AAX’s share was trading sideways since June 2015. We note strong buying interests have emerged for the past three days and managed to break the resistance level of RM0.225 yesterday. Significant trading volume of an average 56.0m shares for the past three days, versus 10-day average of 22.9m signifies the strong buying momentum and may continue to lift price higher. Should the price manage to surpass RM0.255 level, share price might swing to the next resistance level and we peg our TP at RM0.275.

However, failure to hold at support level of RM0.20 may indicate weakness in the share price and hence, a cut-loss signal.

Please refer to our Company Update report on AAX (Expecting better year ahead, 28 January 2016)

Source: PublicInvest Research – 28/01/2016

The Company's principal activity is providing low-cost long haul air transportation services.

Jan 27, 2016

Harbour-Link Group Berhad - A proxy to SCORE

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RM2.95 Fair value: RM3.60 Stock Code: 2062

• Harbour-Link Group (Harbour Link) is a dominant logistics provider in East Malaysia with >50% market share. Harbour-Link rides on the rise of economic activities in Sarawak, underpinned by the Sarawak Corridor of Renewable Energy (SCORE) initiative.
• Logistics services and machineries, its key earnings driver, contributed >60% to Harbour-Link’s earnings growth in FY15. The division rides on the construction of the RM1.8b Samalaju Industrial Park, which is now 40% complete and scheduled to be completed by 2017.
habour stock info• Harbour-Link’s maiden expansion into the property sector will bear fruit in FY16. Phase 1 and Phase 2 of the Kidurong Gateway will be completed by end-FY15. The group is also aiming to launch Phase 3 in FY16 with an estimated GDV of RM70m.
• Consensus is projecting a 53% and 23% earnings growth in FY15F and FY16F driven by the group’s logistics division. On top of this, earnings from the property division are expected to kick in, in FY16, upon the completion of construction.
• Harbour-Link is now in net cash position, suggesting room for higher dividends or acquisitive growth.
habour financial statistic

• We value Harbour Link at a Sum-of-Parts derived fair value of RM3.60/share.

by MIDF Research 12/01/16

The principal activities of the Company are provision of management services and investment holding. The principal activities of subsidiaries are shippingand forwarding servicesmulti discipline engineering and procurement.

Jan 22, 2016

E.A. Technique Slated For Earnings Expansion

RM1.07 Fair value: RM1.79 Stock Code: 5259
eatech share data
eatech price chart• Incorporated in 1993, E.A. Technique (M) Bhd (Eatech) is a ship owner and operator of marine vessels, providing O&G port transportation services.
• Earnings is set to triple from RM14m in FY14 to RM44m in FY15F and RM54min FY16F underpinned by maiden contribution from the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) segment, entailing a floating storage and offloading facility (FSO) for a Full-Field Development Project in the North Malay Basin secured end of last year. The project is worth USD191m and is estimated to be delivered in August 2016.
• Its core business in marine transportation, offshore storage of O&G and port marine services (contributes to >50% of earnings) is expected to be driven by the addition of 7 vessels, all backed by secure contracts (3 to 6 years).
• Upon completion of its dry dock by mid-2016, (which will cater to in-house vessels), Eatech should be able to reduce maintenance costs and improve margins. The dry dock could catalyse a new source of revenue if plans to open it up to third parties materialise.
eatech financial analysis
• Eatech has outperformed peers since its listing in 2014 with the share price rising by a whopping 190% YTD. Nonetheless, we see room for further re-rating given the potential job awards from its RM1bn tenderbook. We value Eatech at RM1.79 based on CY16 PER of 13x.
source: MIDf Research 12/01/16

Jan 21, 2016

Favelle Favco – Attractive Dividend Play For Oil And Gas


FAVELLE FAVCO BHD Stock Code: 7229


favelle price chart • Favelle Favco Berhad (Favco) is at the forefront of highspeed and high capacity niche customized crane under two world renowned brands – Favelle Favco (offshore cranes)  and Krøll (tower cranes). About 89% of the sales generated  are from markets outside of Malaysia.
• As at 19 August 2015, the group’s outstanding orderbook stood at RM866m. The majority of the orderbook consists of oil and gas cranes for the offshore oil and gas exploration and production activities. The remainder is from the shipyard, construction and wind turbine industry. favelle share info
• Since its listing in August 2006, Favco’s average PER is 8.6x. The company is trading at PER of 5.8x which is at a discount in comparison to the FBMKLCI small cap index current PER of 14.3x. FFB is also a cheaper proxy to smallto-mid cap oil and gas services companies which typically trade at PERs of 11x.
• Although we are expecting earnings to be relatively flat, we are still expecting dividend yields to continue to be excess of 4% for this financial year and the next. This assumption is premised on its net cash position and very low capital expenditure requirements (less than RM10m per annum).
• Despite the low price of oil, Favco is still receiving contracts from its tower cranes segment.

Favelle Financial Statistic
favelle financial statistic 


• We value Favco with a TP of RM2.87. Our valuation is based on EPS16 of 35.9sen pegged to PER16 of 8.0x, which reflects its average monthly rolling PER for the past three years.
source:  MIDF Research – 12/01/16

The Company is principally engaged in the design and development of lifting technologies resulting in the manufacturing rental and maintenance of lifting equipment and components.

Jan 19, 2016

Gadang Testing RM2.44 Level


Gadang Holdimgs    Stock Code: 9261

gadang analysis
Gadang  rebounded  to  test  the  MYR2.44  level  in  its  latest  session after  the  recent  correction.  Traders  may  buy  if  this  level  is surpassed  in  the  near  term,  with  a  target  price  of  MYR2.58, followed  by  MYR2.75.  In  the  meantime,  the  stock  may  drift sideways if the MYR2.44  level cannot be breached. Support may be found at MYR2.18, where  traders can  exit upon a  breach to avoid the risk of a further correction.

source:: RHB Research – 19/01/16

The Company is an investment holding company while its subsidiaries' core businesses are in civil engineering and building construction property development water concession mechanical and electrical engineering services and general trading. Since April 2009 the Group ventured into oil palm plantation as part of the Group's diversification exercise.

Jan 12, 2016

Fututech – Potential Price Breakout

Stock Code: 7161
Fututech Daily Chart:
fututech analysis

FUTUTEC (Not Rated). For the day, trading volume hit a 9-month’s high with FUTUTEC’s share price gaining 8.0 sen (+4.7%) to RM1.78. The company has been in the limelight recently with its proposed acquisition of two construction firms for RM458m and a private placement of 100m new shares. Chart-wise, FUTUTEC is trading within a bullish “Broadening formation” over the past two years and is now in the midst of retesting its mid-2015’s high (RM1.84 (R1)). Traders should monitor for a price breakout (Buy signal) with potential upside targets at RM2.00 (R2) and RM2.50 (R3). Support levels are RM1.70 (S1) and RM1.57 (S2) with a suggested stop-loss at RM1.54.

Source: Kenanga Research – 12/01/16

The principal activities of the Company are investment holding and provision of management services. The Group has 2 key business divisions comprising of manufacturing of lighting and kitchen cabinetry and property construction.

Jan 11, 2016

Century Bond May Trend Higher


Cenbond Stock Code: 7171

Century  Bond  may  trend  higher  after  gaining  above  the  MYR1.54 level in its latest session.  Traders may buy as a bullish bias could be present above this  level, with a target price of MYR1.77.  The stock may  consolidate  further  if  it  cannot  sustain  above  the  MYR1.54mark. In this case, further support is anticipated at MYR1.41, wheretraders can exit upon a breach.
Source: RHB Research – 11/01/ 16
The Group is primarily involved in manufacture of paper bags and corrugated cartons.