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2022-01-25 04:45:56 HLIB Retail Research – 25 Jan - Bullish Tracker:

DNEX (RM0.9) :Main Market , Technology
HLIB TP: RM1.35

15mins chart Double top formed, testing target support around RM0.89 area, expecting technical rebound if sustainable.

Entry: RM0.88-0.91
Stop Loss: RM0.86
Resistance: RM0.92-0.95-1.01
Target price: RM0.95-1.00
Risk profile: High

Remarks: Since issuing our buy initiation report on 19 Jan (0.865), DNEX share price rallied 17% to a high of 1.01 yesterday before easing 10.9% at 0.90 now. We have a buy rating with RM1 35 TP

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2022-01-25 04:20:11 HLIB Retail Research – 25 Jan - Bullish Tracker:

CTOS (RM1.75) :Main Market , Technology : Digital Services
HLIB TP: RM2.45

Trending above uptrend line, expecting technical rebound from strong support area, accumulate during retracement phase

Entry: RM1.73-1.76
Stop Loss: RM1.69
Resistance: RM1.83-1.89-1.98
Target price: RM1.85-1.95
Risk profile: Moderate

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2022-01-24 03:47:17 Technical tracker - HLIB Retail Research – 24 January 2021

EVERGRNT(RM0.535) – Further improvement ahead

Riding on higher ASP. Tracking surging lumber and plywood prices, EVERGRN’s medium density fiberboard (MDF) prices advanced amid the robust demand from local Malaysia and Indonesia furniture players, as well as export demand from Middle East. With the strong demand extending to CY22, the buoyant ASP is expected to boost the group's FY22 bottom line (FY22f core PATAMI: RM47mil, +130% YoY from a low base of RM20.4m in FY21). Although the cost of raw materials such as rubber wood and adhesive remains elevated at this moment, we are not overly concerned as we believe EVERGRN would be able to pass on most of the cost increase to its customers owing to the current strength in the panel boards market. Moreover, we expect the elevated rubber wood and adhesive prices to start easing post 1QCY22.


A resilient timber products manufacturer. In 3QFY21, where most of the fiberboard players were making losses due to the 2-month production halt in Malaysia, EVERGRN’s diversified production base across Southeast Asia has proven to be resilient as the group managed to remain profitable by diverting some of its MDF orders from Malaysia to Thailand. Moreover, the group’s integrated operations from upstream to downstream products allows it to be better positioned to ride on the current upcycle in the panel boards market as well as the growth in the furniture industry.

Expect a strong turnaround in 4Q21. We expect EVERGRN to post a commendable QoQ growth in 4QFY21 results (due to the low base in 3Q21 amid production halt in Malaysia). In fact, with higher ASP and robust MDF demand, we are upbeat that EVERGRN’s 4QFY21 earnings will match or surpass its 1QFY21 core PATAMI of RM7.5m. Valuation is undemanding at 9.6x FY22 P/E, about 41% discount to HEVEA and 19% lower than its 5Y average.

Uptrend remains intact. Technically, EVERGRN rebounded mildly after touching its uptrend channel support of RM0.52-0.53. In the wake of the higher lows pattern, a decisive breakout above RM0.56 will spur prices higher towards RM0.60-0.62 territory. Cut loss at RM 0.49


Collection range: RM0.52-0.53-0.535

Upside targets: RM0.60-0.62-0.67

Cut loss: RM0.49

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2022-01-21 03:47:09 Technical tracker - HLIB Retail Research – 20 January 2022

HIAPTEK (RM0.49) – Values resurface; Buy on dips

Steel prices might stay stiff. Despite expectations of easing demand from China due to the country’s rattled property sector, Worldsteel Association (source) remains optimistic on global steel demand and anticipates a growth rate of 2.2% YoY (2021: 4.5% YoY) in 2022, backed by higher-order backlog from the manufacturing sector combined with the rebuilding of inventories and further progress in vaccinations in developing countries. On the other hand, the supply of steel is expected to stay low as China (contributing 57% of the global supply) continues to curb production for the upcoming Beijing Winter Olympics as well as to achieve its carbon-neutral target by 2060. We expect steel price to remain firm amid sustainable demand coupled with restricted supply.

Buy on weakness and sell on strength. In general, steel demand tends to be lower in 4Q-1Q (Figure#1) due to lower construction activities during the winter. However, we expect demand and steel prices to improve post CNY amid restocking activities (Figure#3). HIAPTEK’s current low prices level provides an opportunity for investors to accumulate during weakness as current view of weak seasonal demand in steel is largely priced in, given its undemanding trailing P/E of 3.8x (78% lower than the 5-year average of 17.5x).

Expect good earnings. Although HIAPTEK’s downstream and trading segments margin is expected to normalize in 2QFY22 on the back of lower steel prices (Figure#2), we still reckon 1QFY22 strong earnings to be sustained into 2QFY22. Our optimism is supported by higher sales volume from both HIAPTECK and Eastern Steel (only operating for 2.5 months in 1QFY22) and improved cost structure following the completion of phase 1B of coke oven plant in Oct-21.

Building a base. Technically, HIAPTEK is building a sound base near RM0.45-0.49 territory, which offers great opportunity to accumulate in anticipation of an eventual sector recovery. A decisive breakout above RM0.50-0.55 will indicate a new uptrend has emerged, potentially pushing share prices to revisit RM0.60 levels. Cut lost at RM0.445.



Collection range: RM0.46-0.47-0.49

Upside targets: RM0.55-0.58-0.60

Cut loss: RM0.44

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2022-01-17 04:03:09 HLIB Retail Research – 17 Jan - Bullish Tracker:

FRONTKN (RM3.40) :Main Market : Semiconductors (HLIB: BUY call: 4.15)

Potential rebound; Grossly Oversold; Hitting 0.5 FR level

Entry: RM3.30-3.36
Stop Loss: RM3.18
Resistance: RM3.50-3.58-3.65
Target price: RM3.57-3.65
Risk profile: *HIGH*

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2022-01-13 06:09:41 HLIB Retail Research – 13 Jan - Bullish Tracker:

LAGENDA (RM1.33) : Main Market, Properties（HLIB-BUY TP RM2.00）

Technical indicators showing uptick bias. Expecting technical rebound from strong support zone.

Entry: RM1.3-1.33
Stop Loss: RM1.26
Resistance: RM1.41-1.48-1.55
Target price: RM1.48-1.55
Risk profile: Moderate

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2022-01-12 10:19:21 HLIB Retail Research – 12 Jan - Bullish Tracker:

SLVEST (RM1.27-Not rated) : Main Market, Industrial Products

Technical indicators showing uptick bias. Pending a triangle pattern breakout

Entry: RM1.23-1.27
Stop Loss: RM1.20
Resistance: RM1.30-1.38-1.48
Target price: RM1.38-1.48
Risk profile: Moderate

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2022-01-12 03:00:59 We will be having our Technical Charting - Entry & Exit Signals webinar on Saturday, 15th January 2022 from 10.30am to 12.00pm.

Free registration here: https://www.bursamarketplace.com/opportunities#webinar-hongleong

Mr. Ng Jun Sheng is the Head of Retail Research at Hong Leong investment Bank and is a licensed Investment Advisor. He generates regular trading ideas for retail clients based on a combination of fundamental analysis and the underlying trading momentum. In this webinar, he will be providing an insightful overview of the current volatile market activities and potential trading opportunities arising from it by utilizing basic Technical Charting signals. Open / Comment

2022-01-10 09:35:45 HLIB Retail Research – 10 Jan - Bullish Tracker:

PTRANS (RM0.625) : Main Market, Consumer Products

Technical indicators showing uptick bias. Expecting technical rebound

Entry: RM0.61-0.63
Stop Loss: RM0.59
Resistance: RM0.645-0.675-0.72
Target price: RM0.675-0.70
Valuation: 7x FY22 P/E; 5.2% FY22 DY
Risk profile: Moderate

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2022-01-10 03:40:46 Technical tracker - HLIB Retail Research – 10 January 2022

FOCUSP (RM0.69) – Showing true colors

Going full force. Dragged by a prolonged lockdown, FOCUSP’s 9MFY21 results was lacklustre, with core PATMI only accounting for 45% of our full year estimation despite securing 2 new corporate clients namely Customer S and DDD. In the wake of reopening activities and high vaccination rates, we expect FOCUSP’s 4Q earnings to stage a strong turnaround, supported by the recovering mobility data and consumer sentiment (#Figure 1&2). Although covid-19 risks may prevail in the short term, we nevertheless view that government will tend to take the an endemic approach and therefore avoid any further lockdown.

CK2 utilization to soar. To recap, FOCUSP had commenced its second central kitchen (CK2) since 1HFY21, with the capacity ramping up from 0% to 50~60% in just a few months (despite FMCO in 2HFY21). Going forward, we strongly believe CK2’s utilization rate will continue to gain momentum, underpinned by aggressive new outlets’ opening from its existing and potential new clients. Note that, with a 100% utilization rate, CK2 will contribute ~RM5m in revenue every month.

Main Market? It will not be surprising if FOCUSP proposes to migrate to the Main Market in FY22 as its latest 3 financial years aggregate after-tax profit had surpassed the RM20m threshold. Despite the company has yet to achieve a PAT of RM6m in their latest QR (one of the profit test requirement), we believe it will be just a matter of time to achieve it. Our optimism is underpinned by the anticipation of a recovery in its Optical business and higher contribution from its F&B segment.


Double Bottom. Technically, FOCUSP is pending for a double bottom neckline breakout. A successful breakout above RM0.695 levels will signal a trend reversal has happened, potentially spurring prices to RM0.75-0.80 levels. Cut lost at RM 0.64


Collection range: RM0.67-0.68-0.69

Upside targets: RM0.75-0.77-0.80

Cut loss: RM0.64

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FOCUSP (RM0.69) – 展现其真正的实力

全力以赴。受长期封锁拖累，FOCUSP 的 9MFY21 业绩乏善可陈，尽管获得了客户 S 和 DDD 两个新企业客户，但核心 PATMI 仅占我们全年估计的 45%。在重新开放经济活动和高疫苗接种率之后，我们预计 FOCUSP 第 4 季度的收益将在消费者信心的的复苏下出现强劲的反转。尽管 covid-19 风险可能在短期内卷土重来，但我们仍然认为政府将倾向于采取地方性措施，因此避免任何进一步的封锁。

CK2 利用率将飙升。FOCUSP 自 1HFY21 以来已开始其第二个中央厨房 (CK2)，其使用率已在短短几个月内从 0% 增加到 50~60%（尽管 2HFY21 有 FMCO）。展望未来，我们坚信 CK2 的利用率将继续获得攀升，这得益于其现有和潜在新客户积极开设新门店的计划。在 100% 的利用率下，CK2 每月将贡献约 500 万令吉的收入。

转向主板？如果 FOCUSP 提议在 22 财年迁移到主板市场也不足为奇，因为其 最近3 个财政年度的总税后利润已超过 2000 万令吉的门槛。我们乐观预测该公司将在未来 季度业绩报告(利润测试要求之一）中实现 600 万令吉的 PAT是基于其光学产品业务复苏的预期以及其餐饮部门的更高贡献。因此我们相信FOCUSP申请转移主板是指日可待的。


双底形态。从技术上讲，FOCUSP 目前正等待双底的颈线突破。股价若成功突破 RM0.695 水平将表明趋势可能已经发生反转，可能将刺激股价推高至 RM0.75-0.80 水平。投资者可以把 RM 0.64作为止损。


买入范围：RM0.67-0.68-0.69

上行目标：RM0.75-0.77-0.80

止损：RM0.64

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