HLeBroking

2021-10-29 05:49:14 HLIB Retail Research – 29 Oct - Bullish Tracker:

PHARMA (0.81) , Main Market ,Healthcare, Pharmaceuticals

Forming bottom, pending technical rebound.


Time frame: 7 days
Entry: RM0.80-0.82
Stop Loss: RM0.79
Resistance: RM0.86-0.95-1.01
Target price: RM0.90-RM0.95
Risk profile: Low

Please join us on HLeBroking telegram channel: https://t.me/hlebroking1

Disclaimer: www.hlebroking.com/v3/disclaimer.asp Open / Comment

2021-10-28 03:57:13 Technical tracker - HLIB Retail Research – 28 October 2021

ASTRO (RM1.00, HLIB BUY – TP RM1.41) – The worst is likely over; brace for better 2H earnings

Being one of HLIB’s top picks (BUY, TP: RM1.41), Astro is currently trading at an undemanding 9.8x FY22E P/E (30% discount against 5-year average P/E of 14x) coupled with a generous 7.5% dividend yield.

To recap, ASTRO posted lackluster 2QFY22 earnings, with core PATAMI plunging 29% QoQ and 7.4% YoY, dragged down by the lockdown as well as the higher content cost from major sporting events. Nevertheless, we believe Astro’s earnings will recover in 2H22, underpinned by (1) brighter advertising expenditure spending prospect; (2) gradual recovery in commercial subscription revenue on the back of easing lockdown measures since Aug; and (3) the lower content cost (vs 2QFY22).

Despite Malaysia’s pay-TV market (85% of ASTRO FY21 revenue) appearing to reach a saturation point at current levels (71%-75% FY17-FY21), we are encouraged by ASTRO’s efforts to sustain its revenue and lift its average revenue per user (ARPU) through its streaming service partnership with Netflix, Disney+ Hotstar, HOB Go, iQiyi, TVB Anywhere.

In addition, the signed agreement between ASTRO and TM on 29 Sept to become a reseller of broadband services will allow ASTRO to have a new revenue stream without the need to invest heavily in new infrastructure. With ASTRO allowing its customer to subscribe to different streaming services with easy access for payment in a single bill, together with the likelihood of bundling the broadband services with its core pay-TV business, we believe the recent development will further strengthen its pay-TV business and serve as a moat to safeguard its leading position.

Technically, ASTRO is building a sound base near RM0.97-1.00 supports. Any weakness from current share prices toward the support levels provided a good opportunity to accumulate one of the laggard recovery play proxies. A successful breakout above immediate resistance of RM1.04 (50D MA) will spur the prices toward RM1.10-1.16-1.20 levels. Cut lost at RM 0.945

Collection range: RM0.97-0.980-1.00

Upside targets: RM1.10-1.16-1.20

Cut loss: RM0.945

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

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

2021-10-27 09:44:36 HLIB Retail Research – 27 Oct - Bullish Tracker:

EG - (RM0.525) , Main Market , Industrial Materials, Components & Equipment

Value resurface after 8 months sell down; Riding on the E&E and 5G bull run; Pending double bottom

Time frame: 7 days
Entry: RM0.510-0.53
Stop Loss: RM0.49
Resistance: RM0.560-0.595-0.63
Target price: RM0.57-0.60
Risk profile: Moderate

Please join us on HLeBroking telegram channel: https://t.me/hlebroking1

Disclaimer: www.hlebroking.com/v3/disclaimer.asp Open / Comment

2021-10-27 03:24:27 HLIB Retail Research – 27 Oct - Bullish Tracker:

JCY - (RM0.325) , Main Market , Technology

Strong net cash of 10sen or 30% of shr px. Expect a turnaround in FY 9/22 amid a huge upcycle on rising demand for HDD.
Technical showing reversal sign, indicators showing uptick bias

Time frame: 7 days
Entry: RM0.315-0.33
Stop Loss: RM0.30
Resistance: RM0.35-0.38-0.40
Target price: RM0.35-0.38
Risk profile: Moderate

Please join us on HLeBroking telegram channel: https://t.me/hlebroking1

Disclaimer: www.hlebroking.com/v3/disclaimer.asp Open / Comment

2021-10-26 06:54:37 HEALTHCARE - Appetite for M&As

Click on each visual to find out why!

FB post link: https://www.facebook.com/106072435017236/posts/183853533905792/?d=n

Follow our Telegram channel for more market updates & trading ideas: https://t.me/hlebroking1. Open / Comment

2021-10-26 03:40:30 HLIB Retail Research – 26 Oct - Bullish Tracker:

TEXCHEM - (RM0.885) , Main Market , Industrial products

Expect the general outlook on the business environments to recover. Showing uptick bias, accumulate at retracement phase.

Time frame: 7 days
Entry: RM0.855-0.89
Stop Loss: RM0.835
Resistance: RM0.905-0.935-1.02
Target price: RM0.935-RM1.00
Risk profile: Moderate

Please join us on HLeBroking telegram channel: https://t.me/hlebroking1

Disclaimer: www.hlebroking.com/v3/disclaimer.asp Open / Comment

2021-10-26 03:39:49 Technical tracker - HLIB Retail Research – 26 October 2021

EDGENTA (RM1.79, HLIB BUY – TP RM2.30) – A good proxy for growing healthcare demand

Listed since 1964, UEM Edgenta (EDGENTA) is the region’s leading Asset Management (i.e. Healthcare Support and Property & Facility Solutions) & Infrastructure Solutions (i.e. Infrastructure Services and Asset Consultancy) company. In 1HFY21, the top revenue contributor was derived from the Healthcare Support (HS) division (63.1%), followed by Property and Facility Solutions (24.6%), Infrastructure Services (7.7%), Asset consultancy and others (4.6%).

In anticipation of the rapid digitalization of the HS sector (expected to grow by 15% CAGR in the next few years), EDGENTA believes that this division will continue to drive their post-pandemic recovery, as the group have accelerated regional expansion efforts as well as introducing new-to-market solutions beyond the traditional healthcare offerings. To recap, EDGENTA had secured ~RM721m worth of new contract YTD whereby 72% of it was for HS services. In addition, the recent signed memorandum of business exploration with Asma Advanced Solution LLC to identify strategies to capture the high-growing Saudi Arabia market will serve as a catalyst for the group's future growth.

Although the upcoming 3Q21 results is expected to remain weak amid lockdowns, improving operating business environment since Sep together with several drivers from the healthcare division bode well for EDGENTA’s future prospects. Overall, management aims for an annual revenue growth of 12% for the next five years, driven by its healthcare segment, new market expansion and digitalization, and gradually moving away from a concession-based business model into commercial businesses to achieve a 50:50 contribution.

EDGENTA is currently trading at 11.9x FY22 P/E (62% discount against 5-year average of 31.9x) together with a generous 5.9%-7.0% FY22-23 dividend yield, supported by a strong 39% FY21-23 EPS CAGR. Technically, the stock is pending for an inverse head and shoulder pattern. A successful breakout above its neckline of RM 1.82 will spur the prices toward RM1.90-RM2.00 territory. Cut loss at RM1.69.

*Collection range: RM1.74-1.76-1.80*

*Upside targets: RM1.88-1.90-2.00*

*Cut loss: RM1.69*

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

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

2021-10-25 03:51:26 Technical tracker - HLIB Retail Research – 25 October 2021

WONG (RM1.64, Non-Rated) – Riding on the E&E and Semiconductor bull cycle

Established since 1982, Wong Engineering Corporation Berhad (WONG) and its subsidiaries offer a full array of services from design to development and production of high precision metal fabricated parts with superior quality assurance. Currently, the group supports a wide range of prominent multi-national customers from E&E, semiconductor, test instruments, telecommunication, etc. Since 2017, the group ventured into Construction and Property development (CPD) with first project at the Kuchai Lama Entrepreneur Park with a GDV of RM87.5m and grew it into one of the group's main revenue contributors (32% FY2020), whilst manufacturing contributed to the rest (68% FY2020). The group exports contributed about 18% to its FY20 revenue.

After plunging 28% from a high of RM2.17 (10th Sept) to a low of RM1.52 (5th Oct), WONG’s share prices gradually recovered to end at RM1.64 last Friday. The stock is currently trading at an undemanding 23.5x trailing P/E (36% discount against its peers’ average of 37x). As for CPD unit, with the Kuchai Lama project nearing its completion, WONG will seek out new projects and opportunities for growth to supplement its manufacturing segment.

Pending further development from CPD, we opine WONG prospects remain promising after the recent MCO3.0 disruption, premised on the bullish E&E and semiconductors demand. Going forward, the group is working toward expanding into higher value-added manufacturing activities by broadening its product offerings to include full assembly of high precision stamped and turned metal parts, as well as expanding its market share into the healthcare sector.

Technically, pending the announcement of entitlement date for the proposed bonus issue of up to 151.3m shares (on 6:5 basis) in early Nov, we expect the stock to trend near the uptrend line support near RM1.57-1.60 zones. In the wake of a higher low pattern, a decisive breakout above RM1.69 (0.236 FR from RM2.17 peak and RM1.54 bottom) will spur the prices toward RM1.80-1.90 territory. Cut loss at RM 1.52.

*Collection range: RM1.57-1.60-1.64*

*Upside targets: RM1.81-1.86-1.90*

*Cut loss: RM1.52*

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

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

2021-10-22 09:18:36 HLIB Retail Research – 22 Oct - Bullish Tracker:

SCOMNET (1.77), Ace Market, Healthcare

Poised for a flag pattern breakout, accumulate at retracement phase

Time frame: 7 days
Entry: RM1.73-1.78
Stop Loss: RM1.70
Resistance:RM1.83-1.91-2.00
Target price: RM1.90- 1.95
Risk profile: Moderate

Please join us on HLeBroking telegram channel: https://t.me/hlebroking1

Disclaimer: www.hlebroking.com/v3/disclaimer.asp Open / Comment

2021-10-21 03:48:09 Technical tracker - HLIB Retail Research – 21 October 2021

TENAGA (RM9.76, HLIB BUY - TP RM12.50) – Set to rebound soon

In line with China power crunch, TENAGA share prices had fallen 5.7% from a high of RM10.33 to RM9.76 yesterday. We continue to like TENAGA on the back of better utilities demand prospect that is driven by Malaysia’s transition into Phase 3 and 4 of National Recovery Plan.

Despite lingering fear that the recent surge in power energy would impact TENAGA in terms of electricity generation cost and demand for the utilities, we nonetheless are not overly concerned as the Imbalance Cost Pass-Through (ICPT) mechanism will allow TENAGA to transfer the fluctuation risk of fuel energy cost to end-users or be compensated by the government. With the hike in energy cost, we expect a potential surcharge of RM7.6bn in 1H22 to be pass-through. Hence, TENAGA is deemed to be neutral from the hike in energy cost. Going forward, TENAGA will continue to leverage into its power business through focusing its RE investment and will not undertake any new coal-fired power plant development, this is in line with the government pledge.

Technically, TENAGA is poised for symmetrical triangle breakout (RM9.85). A successful breakout will spur the prices toward RM10.23 before reaching our LT targets of RM 10.63. Cut lost at RM9.54.

RM9.69-9.70-9.76

RM10.25-10.50-10.63

RM9.54

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

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