Oct 7, 2013

Short-term Buy On Menang

Weekly Trading Idea By Maybank 
(Stock Code: 1694)  (Bloomberg Code: MEN MK Equity)

menangMENANG made a major weekly Wave 2 low of MYR0.19 (Nov 2011) with grossly oversold and bullish signals. All its  positive  signals  above  suggest  a  strong  daily Wave  3  and  5-uptrend.  It is  likely to  break into  higher territory, as it breached its key resistance areas in a clear upward Wave 3 and 5-move. Short-term on dips for MENANG, with very firm supports and clear upward target areas of MYR0.61, MYR0.81 and MYR1.06.

menang financial dataMENANG announced its 4QFY6/13 results in August but no comparative numbers were presented due to the change of financial year from 31 Dec 2011 to 30 Jun 2012. Looking at MENANG’s segmental reporting,  we notice that a large proportion of revenue (about 94%) was derived from the construction sector. For the 12 months ended 30 Jun  2013,  the group recorded revenue of MYR238.2m and a profit after tax of MYR32.1m which  was  mainly  contributed  from  the  ongoing  Private  Finance  Initiative  (PFI)  project  of  the  University Teknologi  MARA  Campus  in  Seremban  3  township  and  Universiti  Teknologi  MARA  Campus  Satelit  C  at Puncak Alam, Selangor. A check  of  Bloomberg consensus reveals that only  one  research house  covers the stock,  on which it  has a HOLD  call. The stock is currently trading  at a low  historical PER of 8.9x and a P/BV of 1.0x. MENANG has no indicated dividend yield

Menang Corporation (M) Berhad (MENANG) develops property, provides leasing and hire purchase services and undertakes landscaping projects. It also operates money-lending services

by Maybank Investment Bank