Feb 27, 2015

GAQRS – Technical Analysis


gagrs_analysisabove: GAQRS Daily Chart (click to enlarge) 

Technical Commentary

GBGAQRS could be forming a base formation around the RM1.17-RM1.25 levels. As transacted volumes have been increasing in the past three month, this could be an indication that the share is undergoing the accumulation phase and could be poised for a breakout pattern above the RM1.25 level over the near term. The MACD Line is approaching the zero level and the RSI is trending higher above 50. Both indicators are suggesting that the momentum is picking up. If the price breaches above the RM1.33 level, it will be forming a “W” shape reversal pattern and the price target will be located around the RM1.50 and RM1.63 levels. Meanwhile, support will be pegged around the RM1.17 level.


Investors and traders may start to buy around the support zone between the RM1.17- RM1.25 levels with a short term target pegged around the RM1.33 level. If the share price manages to surpass the RM1.33 level with high volumes, further buying activities should be executed and the price target will be envisaged around the RM1.50-RM1.63 levels. Cut loss, however, should be initiated if the price violates the RM1.15 support level.

Stock Information

The Gabungan AQRS Group is an engineering and construction service provider and niche lifestyle property developer. The Group’s core business is in construction, where the construction activities are undertaken by its units Motibina, Gabungan Strategik and Megah Ikhlas. Meanwhile, property development, being its complementary business activity, is spearheaded by AQRS The Building Company Sdn. Bhd.

Higher FY2014 Revenue & Net Profit

Gabungan AQRS Bhd has recorded a strong set of 4Q2014 results as its net profit grew 96% Y.o.Y to RM11.6 mln, mainly due to higher sales and higher work progress contributed by its property projects; The Avenue (shop offices located in Kinrara Uptown, Puchong), and Permas Centro (shop offices located in Permas Jaya, Johor Bahru Flagship D of Iskandar Malaysia). Also, 4Q2014 revenue increased 6.9% Y.o.Y to RM122.0 mln.

For 2014, cumulative net profit stood at RM52.9 mln (+23.4% Y.o.Y). Meanwhile,
revenue for period rose 31.5% Y.o.Y to RM534.1 mln, where 60.8% of the revenue  was  contributed  by  the construction division. Moving forward, the Group is expected to further strengthen its orderbook to sustain growth in both the revenue and profits from its construction arm.

by Malacca Securities