Technical tracker - HLIB Retail Research – 20 September 2021 | HLeBroking

Technical tracker - HLIB Retail Research – 20 September 2021

MASTER (RM1.78-Non-Rated) – Riding on the promising packaging outlook and solid balance sheet

MASTER is primarily engaged in the business of manufacturing fully recyclable corrugated cartons, wooden packaging and providing one-stop packaging solutions to its customers, warehousing as well as vendor managed Inventory. Over the last 30 years, MASTER had made a name for itself as an innovative niche market player in the packaging industry with the operation in Malaysia (contributed FY20 revenue 62%) and Vietnam (38%). Currently, the group’s turnover is spread over a multitude of industries with the top five leading industries being solar energy, food-beverage & agro based, electronics & electrical, converter and ceramics.

MASTER sees promising prospect ahead because packaging plays a significant role in the preservation and protection of consumer products from physical damage and to provide aesthetic and branding appeal. Overall, the group expects solar industries (FY19 revenue: 67%; FY20 revenue: 47%) to outperform in the coming years amid robust demand of solar module due to the continuing policy support and increasingly favourable economics for solar power over other types of electricity. Notably, Bloomberg Intelligent expects the annual solar capacity to increase by 20% CAGR from FY21-23, which translated into greater solar module demand.

Although short term outlook are likely to be affected amid rising raw material costs and challenging operating environment in Malaysia and Vietnam following the Covid-19 outbreak, MASTER is cautiously optimistic of FY21 earnings owing to its diversified customer clientele and most of its major customers are able to operate without abnormal restrictions. In anticipation of more economic re-openings in both countries, we reckon MASTERS’ outlook would gradually improve.

MASTER is currently trading at trailing 6.9x P/E (18% discount against its peers’), supported by healthy profit margin of 10% (19% higher than peers) and solid balance sheet (net cash/share RM0.53). After recent correction from RM 2.06 (19 Jan) to a low of RM 1.66 (8 July), MASTER is pending for a rounding bottom formation rebound. A strong breakout on its neckline RM1.81 will spur the price toward RM1.87-1.94-2.08 levels. Collection range is RM1.72-1.77. Cut loss at RM1.66.

Collection range: RM1.72-1.75-1.77

Upside targets: RM1.87-1.94-2.08

Cut: RM1.66
————————-

Technical tracker (中文版) - HLIB Retail Research – 20 September 2021

MASTER (RM1.78-Non-Rated) –包装行业的佼佼者; 拥有强劲的每股RM 0.53净现金

MASTER 主要业务包括制造可回收瓦楞纸箱、木质包装以及为其客户、仓储和供应商管理库存提供一站式包装解决方案。在过去的 30 年里，MASTER 凭借在马来西亚(2020 财年营业额：68%）和越南 (38%) 的业务，成为包装行业的佼佼者。目前，集团的营业额分布在多个行业，其中前五名MASTER所供应的行业是太阳能、食品饮料与农产品、电子与电气、转换器和陶瓷。

MASTER前景亮丽，主要因为包装在保护物品免受损坏以及提供品牌吸引力方面发挥着重要作用。值得一提的是该集团所供应的太阳能行业预计将在未来几年会跑赢市场（2019 财年营业额：67%；2020 财年营业额：47%），原因是各囯政府政策持续支持太阳能发电，使太阳能组件的需求强劲。值得注意的是，Bloomberg Intelligent预计从 21-23 财年开始，太阳能年产能将以 20% 的CAGR增长，这将提升太阳能组件需求，从而提高其包装的需求。

尽管在 Covid-19 爆发后马来西亚和越南的原材料成本持续上升，充满挑战性的经营环境可能会影响短期前景，但 MASTER 对 21 财年的收益持谨慎乐观态度，因为公司的客户多元化，并且其大多数主要客户业务都能够持续不受影响。在预计两国将有更多的经济活动得以重新开放下，我们认为 MASTERS 的前景将逐渐改善。

MASTER 目前的市盈率为 6.9 倍（低于同行18% ），公司也拥有10% 的利润率（比同行高19%）和稳健的资产负债表（净现金/每股 0.53 令吉）。股价从 RM2.06 （1 月 19 日）回调至 RM1.66 （7 月 8 日）的低点之后，MASTER 目前有待出现圆底形态的突破。股价如果突破RM1.81 后有机会上探至 RM1.87-1.94-2.08 的水平。买入范围是RM1.72-1.77。投资者可以 把RM1.66 作为止损。

买入范围：RM1.72-1.75-1.77

上行目标：RM1.87-1.94-2.08

止损：RM1.66


Please join us on HLeBroking telegram channel: https://t.me/joinchat/qaZOqmjEU0k4ZGVl

DISCLAIMER: https://www.hlebroking.com/v3/disclaimer.aspx