Apr 20, 2016

SERNKOU – May Trend Higher After Breakout

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SernKou Stock Code 7180

sernkou analysis

Sern  Kou  Resources  may  trend  higher  after  climbing  above  the MYR0.88 level in its latest session to mark a new high. A bullish bias may be present above this point, with a target price of MYR1.00. On the  other  hand,  the  stock  may  turn  sideways  if  it  dips  back  below the  MYR0.88  level.  Support  may  be  found  at  MYR0.81,  where traders  can  exit  upon  a  breach  to  avoid  the  risk  of  a  further correction.

Source: RHB Research – 20/04/2016

SERN KOU RESOURCES BERHAD
The Group an integrated furniture manufacturer is principally involved in manufacturing and distribution of rubberwood and metal furniture and trading of kiln-dried rubberwood.

Apr 19, 2016

KRETAM

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Kretam Holdings Stock Code 1996

kretam technical analysis

KRETAM (Not Rated). KRETAM has been on an uptrend since August last year with its share price almost doubling from RM0.345 to as high as RM0.65 (February 2016). Following a two-month long downward consolidation phase between RM0.53-RM0.55, the share price broke the RM0.55 resistance level last Friday and continued its rally into yesterday’s trade. For the day, KRETAM was up by 2.0 sen (3.5%) to close at RM0.585. Trading volume was markedly higher, while the MACD has crossed above the signal line to reflect an increase in buying momentum. Hence, we expect the share price to continue its upwards climb towards RM0.60 (R1) and RM0.645 (R2) next. Downside supports are pegged to RM0.55 (S1) and RM0.53 (S2).KRETA

Source: Kenanga Research – 19/04/ 2016

KRETAM HOLDINGS BERHAD
The Company's activities consist of the operation of oil palm plantation & investment holding.

Apr 18, 2016

HEVEA - Poised for a decisive downtrend line breakout

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HEVEA Stock Code 5095

heavea analysis

Business profile. Hevea manufactures and exports particleboard and readyto- assemble (RTA) furniture. Over 90% of its revenues are US$-based, while its cost is RM-based. It major markets are Japan, China, Korea, India, Australia and US.

Negatives

largely discounted. YTD, share price tumbled 28% to RM1.17 (underperforming the KLCI by almost 30%-pts), mainly on a stronger MYR (against the US$). While we are cognizant that a sharp recovery in RM (again the US$) does not bode well for exporters ’ earnings growth, we believe recent selldown is overdone due to the following:

i. HEVEA is more than a US$ play, given strong consensus earnings CAGR of 13% for FY15-17, underpinned by its ongoing cost rationalization exercise and investment into new RTA production line as well as continuing focus on producing wider range of higher value products ;

ii. Current valuation of 5.2x FY16 P/E is attractive ( vs its neares t peer’s EVERGREEN 7.9x) and its 10-year historical P/E of 8x;

iii. The negative USD weakness factor has largely priced in, as reflected by s tabilization in HEVEA’s s hare price vs USD chart (FIG3); and

iv. Hevea is also expected to benefit from the rebuilding in Japan in the aftermath of recent earthquake given that the company exports ~50% of its products to the country.

Poised for a downtrend line breakout. Having corrected 35% from 52-week high of RM1.79 to close at RM1.17 last Friday, we believe HEVEA is at the tail end of its 2-month sideways consolidation. A decisive breakout above RM1.22 (30-d SMA) will spur prices higher towards next targets at RM1.26 (50-d SMA) and RM1.37 (38.2% FR) before reaching our LT objective near RM1.45 (50% FR). Key supports are RM1.11-1.15. Cut loss at RM1.09.
Attractive risk to reward ratio with 23.9% upside against 6.8% downside. All in, we see a good risk to reward ratio for investor with a theoretical entry price of RM1.17 given that the downside to the cut loss zone of RM1.09 is 8 sen (-8%) while the upside to the LT target of RM1.45 is 28sen (+23.9%).

Source: HL Investment Bank Research – 18/04/2016

HEVEABOARD BERHAD
The Company's principal activities are manufacturing and trading of particleboards and wood-related products and investment holding.

Mar 31, 2016

Felda Global Ventures Testing Resistance Level

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Stock Code: 5222

buy felda global ventures

Felda  Global  Ventures  was  testing  the  MYR1.54  level  and  50-day SMA  line  in  its  latest  session.  The  stock  may  climb  further  if  it breaches this point in the near term, with a target price of MYR1.66. On  the  other  hand,  it  may  turn  sideways  if  the  MYR1.54  mark cannot  be  surpassed.  Support  may  be  found  at  MYR1.43,  where traders can exit upon a breach.

Source: RHB Research – 31/03/2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD
The Company were the commercial arm of FELDA for overseas investments in the upstream and downstream palm oil business and other agribusinesses and the Company are currently a producer of oil palm and rubber plantation products soybean and canola products oleochemical products and sugar products. The Company primary business activities are classified into three main business segments: plantations business downstream business and sugar business.

Mar 29, 2016

MAYBULK – Breakout From 1 Year Downtrend

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Stock Code: 5077

malaysian bulk chart analysis

MAYBULK recently garnered investors' interest again, surging 10.0 sen (16.0%) to close at RM0.725 on the back of strong volume breakout from its 1-year downtrend resistance line. We observe that the resurgence of investors’ interest in MAYBULK came in tandem with the rebounding Baltic Dry Index (refer to Figure x), which the share price heavily correlates to. Indicator-wise, the MACD histogram has staged a strong bullish convergence breakout from its trend line. Besides, an uptick by both Stochastic and RSI also suggest supportive bullish momentum. We reckon that MAYBULK provides a trading opportunity and it is expected to see its share price testing RM0.775 (R1) and possibly RM0.83 (R2) next. Immediate support is seen at RM0.62 (S1) and RM0.52 (S2) next. Nonetheless, we advocate conservative traders to wait for a technical pullback before entering the stock as the stock usually takes a breather after a strong surge (as circled on chart).

source:  Kenanga Research – 29/03/ 2016

MALAYSIAN BULK CARRIERS BERHAD
The Company provides marine transportation through its fleet of dry bulkers and product tankers and ship management services.

Sell: Affin - Seeks Approval To Raise Insurance Stake

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Affin Holdings (AHB MK/SELL/RM2.32/Target: RM1.70) Seeks Approval To Raise Insurance Stake

affin bank

WHAT’S NEW
Affin Holdings is seeking to boost its current 34.51% stake in associate firm AXA Affin General Insurance Bhd (AAGI). The financial services provider told Bursa Malaysia that Bank Negara had stated it had no objection in principle for it to start negotiations with Felda Marketing Services Sdn Bhd, AXA Asia and subsequently with the minority shareholders to acquire additional shares in AAGI. The consent is subject to all parties concluding negotiations within six months from the date of the central bank’s letter (25 March). On concluding negotiations, it would be required to get the prior approval of Bank Negara before entering into any agreement to effect the proposal.
(Source: The Star)

COMMENT
Marginal lift to earnings. In contrary to many banks which are seeking to dispose off their non-core insurance business to help improve their CET1 ratios, Affin Group is looking to raise its stake in its insurance JV with AXA. We think this could be partially due to Affin’s relatively small earnings base and hence the need to reinforce it by raising its stake in its insurance associate. We estimate that for every 10ppt increase in its stake in AAGI, the group’s earnings would rise by 2% while CET1 ratio will decline by less than 5bps.

Maintain SELL and target price of RM1.70 (5.7% 2016F ROE, 0.40x 2016F P/B, implied FY16 PE: 7.2x). If 4Q15 ROE of 4.8% is maintained, there could be further downside risk to our depressed earnings forecast, which is currently 12% below consensus.

source: UOBKayHian – 28/03/2016

Mar 24, 2016

Pestech May Trend Upwards

Pestech International  Stock Code : 5219

pestech chart analysis

Pestech International  may trend upwards  after  climbing above the downtrend line and 50-day MAV line. A bullish bias may be present above the MYR6.50 level,  with a target price of MYR7.65,  assuming the  MYR7.05  resistance  can  be  surpassed.  The  stock  may  turnsideways  if  it  falls  back  below  the  MYR6.50  mark.  In  this  case, support  is  anticipated  at  MYR6.25,  where  traders  can  exit  upon  a breach to avoid the risk of a further correction.

source: RHB Research - 24/03/2016

PESTECH INTERNATIONAL BERHAD
The Company is principally engaged in the provision of comprehensive power system engineering and technical solutions for design procurement and installation of High Voltage and Extra High Voltage substations transmission lines and underground cables for electricity transmision and distribution in the local and international markets and also manufacture proprietary power system components and equipment.