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2021-09-14 03:36:05 Technical tracker - HLIB Retail Research – 14 September 2021

OCK (RM0.485-Non-Rated) – The rising star from 5G deployment and green energy solutions

Listed since 2014, OCK is the largest telecommunication services provider in Malaysia, offering full turnkey contracting and managed network services, and construction services for solar farms. Today, OCK has a telecommunication tower portfolio of more than 4,300 units located in Malaysia, Myanmar, and Vietnam as well as 17 solar farms in Malaysia. The group derived 90.7% of its FY2020 revenue through telecommunication network services (TNS) divisions, 6.1% through green energy and power solution (GNP) whereas trading, and M&E engineering services accounted 3.2%.

Being the largest telecommunication service provider in Malaysia, OCK is set to benefit from the government’s National Digital Infrastructure Plan (JENDELA), which aims to expand the 4G network coverage in the country for 5G technology. To recap, government introduced the 1st phase of JENDELA in mid-2020, aiming to expand the 4G mobile broadband coverage from 91.8 percent to 96.9 percent by 2022 through building new towers and upgrading existing towers. As telcos strive to meet the JENDELA targets in 2021- 2022, OCK’s growth in TNS will likely be driven by the deployment and the maintenance of more infrastructures to achieve JENDELA’s aspiration of nationwide coverage.

In addition, the recent appointment to Ericsson from Digital Nasional Berhad (DNB) for the roll out of Malaysia’s 5G network is deemed to benefit OCK given its long-established relationship with Ericsson. On the other hand, as OCK continues to expand its green energy segments through acquisitions of solar farms, we reckon this will bring new income stream to the group topline in order diversify the overall group business risk.

OCK is currently trading at an undemanding 15.8x FY22 P/E (50% discount against its peers’ average of 31x and 24.7% lower than its 5-year average of 21x). Technically, OCK is pending for U-shaped rebound. A strong breakout on its neckline RM 0.49 will spur the price toward RM 0.52- 0.54 levels. Cut loss at RM 0.44.

*Collection range: RM0.45-0.47-0.48*

*Upside targets: RM0.52-0.54-0.575*

*Cut: RM0.44*

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2021-09-13 10:03:31 HLIB Retail Research – 13 Sep - Bullish Tracker:

OCK ,0172 (RM0.48)- Main Market, Telecommunications service

Beneficiaries of JENDELA and renewable energy; Pending U-Shape rebound; trading above MA 20 50 100

Time frame: 7 days
Entry: RM0.465-0.48
Stop Loss: RM 0.455
Resistance: 0.50-0.54-0.575
Target price: 0.50-0.54
Risk profile: Moderate

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2021-09-13 03:47:50 Technical tracker - HLIB Retail Research – 13 September 2021

DUFU (RM4.26-Non-Rated) – HDD remains the anchor driver whilst its non-HDD is picking up pace

Dufu Technology Corp (DUFU) is principally engaged in the manufacturing of high-precision engineering parts and components. The group is a global market leader in the supply of disk spacers, a critical component for HDD (contributes over 70% to the topline). Over the years, DUFU has been diversifying its product portfolios to outweigh the negative impact of HDD market centric to non-HDD segments (sheet metal and stamping division), mainly for the semiconductor, medical and automotive industries. Currently, DUFU exports (contributes over 90% to sales) its products to more than 10 countries across the world covering Asia Pacific, Europe, Oceania and North American region.

Despite persistent threat from the Solid State Drive (SSD) due to faster reading speed and decreasing price trend, we believe HDD remains the top choice for corporate use. In general, HDDs will continue to be the storage media of choice in areas dealing with large amount of data and workloads due to its price advantage over SSD, with terabytes (TB) and petabytes (PB) HDDs are now available in the market targeting mainly the enterprise data solution segment. Moreover, enhancements in various technological developments such as HAMR (heat-assisted magnetic recording) technology, MAMR (microwave-assisted magnetic recording) and development of dual actuator have helped HDD to remain relevant today.

Going Forward, DUFU are optimistic for its future outlook, premised on the surging demand for data centres to cater for full portfolio of digital infrastructure products, spanning across compute, storage, networking, security and related domains, and provides a comprehensive one-stop digital platform that includes cloud computing, big data, interconnectivity, Internet of Things (“IoT”), edge computing, artificial intelligence (“AI”) and 5G solutions. This bodes well for DUFU as it serves both the HDD and non-HDD segments.

After recent correction from RM4.80 (6 July) to a low of RM4.12 (23 Aug), DUFU staged a mild rebound to end at RM4.26 last Friday, with the indicators showing uptick bias. A strong breakout above its RM 4.38 (0.382 FR) will spur the price higher toward RM4.54 (0.618 FR) before reaching our LT target at RM4.80. Cut loss at RM4.06.

*Collection range: RM4.12-4.2-4.26*

*Upside targets: RM4.38-4.54-4.8*

*Cut: RM4.06*

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Technical tracker（中文版） - HLIB Retail Research – 13 September 2021

DUFU (RM4.26-Non-Rated) –公司业绩将会在HDD和非 HDD的业务带动下表现亮丽

DUFU主要从事于制造高精密工程零部件。该公司是世界上数一数二的磁盘垫片供应，这是 HDD 的关键组件（占收入的 70% 以上）。多年来，DUFU 一直在多元化其产品组合，从高度依赖HDD业务多元化至非HDD业务如：半导体、医疗和汽车行业。目前，DUFU产品出口（占销售额的90%以上）达全球10多个国家，涵盖亚太、欧洲、大洋洲和北美地区。

虽然SSD的崛起将为公司业务持续构成威胁 (因为它更快的读取速度和其价格的不断下跌的趋势)，我们认为 HDD 仍然是企业使用的首选。总而言之，HDD 将继续成为处理大量数据和工作负载领域的首选，因为它比 SSD更具有价格优势，目前市场上提供的 Terabyte 和 Perabyte 级的 HDD 主要针对企业数据解决方案。此外，各种技术发展的增强，例如 HAMR（热辅助磁记录）技术、MAMR（微波辅助磁记录）和双驱动器的开发，已帮助 HDD 在今天保持了市场低位。

DUFU对未来前景持乐观态度，主要是对数据中心的需求激增，这将满足涵盖计算、存储、网络、安全和相关领域的产品。公司也为云计算、大数据、互联互通、物联网（“IoT”）、边缘计算、人工智能（“AI”）和 5G提供全面的一站式数码产品平台。这对 DUFU 来说是个利好因素，因为公司可以为 HDD 和非 HDD 市场提供服务。

股价 在7 月 6 日的RM4.80回调至RM4.12 低点后，在上周五也出现反弹，收于 RM4.26 。股价突破RM4.38（0.382 FR）将推动价格上探至 RM4.54 （0.618 FR），并有望达到我们的长期目标 RM4.80。投资者可以以RM4.06 设为止损。

买入范围：RM4.12-4.2-4.26

上行目标：RM4.38-4.54-4.8

止损：RM4.06

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2021-09-13 03:45:29 Technical tracker - HLIB Retail Research – 13 Sep 2021

UCHITEC (RM3.19-HLIB Research BUY – RM3.88 TP) – Expecting a better 2H21; Poised for a bullish triangle breakout


Profile: UCHITEC is a renowned one-stop original design manufacturer (ODM) of electronic control modules, offering a wide spectrum of services that range from R&D, tools design and set up, and engineering support to the production of finished electronic control systems for household appliances (e.g. fully and semi-automated coffee machines) and appliances for office services sector (industrial scale, professional iron station, etc). Its products can be divided into 2 categories i.e. Art-of-living & Biotech.


Undemanding valuation. UCHITEC’s valuation appears undemanding, trading at 15.9x FY22E EPS (9% below its peers’ average), supported by attractive FY22E DY of 5.6% (vs peers’ 2.5%), strong netcash/share of RM0.39 and robust FY22E net margin of 52.6% (vs peers’ 5.5%). We like Uchi for its (i) stable earnings drivers being the sole supplier and R&D partner for its customers; (ii) involvement in the indispensable market of coffee and biotech division that could serve as a future catalyst in this pandemic era; (iii) attractive dividend yield, superb net profit margin and strong net cash (strong cushion to any downside risk); and (iv) expect a better 2H21 amid capacity normalisation given that more than 80% of Uchi's employees have completed 2 doses of vaccination as at end Aug.


Poised for a bullish triangle breakout. After falling 17% from 52-week high of RM3.55 to a low of RM2.92, UCHITEC has rebounded steadily to close at RM3.19 last Friday. The stock is likely to break above RM3.27 (downtrend line from RM3.55) as the share price has closed above multiple key SMAs, with higher upside targets at RM3.40 (76.4% FR) and RM3.55 zones.


Collection range: RM3.10-3.15-3.19
Upside targets: RM3.27-3.40-3.55
Cut: RM3.05

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Technical tracker (中文版) - HLIB Retail Research – 13 Sep 2021

UCHITEC (RM3.19-HLIB Research 买入评级– TP RM3.88 ) – 预计业务不会受疫情拖累而持续增长；三角形突破后看涨

简介：UCHITEC 是一家专注于电子控制模块的原始设计制造商 (ODM)。公司业务涉及了电器（全自动和半自动咖啡机）和办公服务领域的电器（工业规模、专业铁站等），并提供广泛的服务例如研发、工具设计和设置、工程和生产家用电子控制系统的成品。其产品可分为两大类，即生活艺术和生物技术。


UCHITEC 目前的估值不高，交易于FY22E 每股收益的15.9倍（比同行平均水平低 9%）。公司也有高达 5.6% 的FY22E 收益率（相对于同行的 2.5%）、强劲的每股净现金 RM0.39 和 FY22 净利润率达52.6%（对比同行 5.5% ）。此外我们看好Uchitec这几个逻辑：
(i) 稳定的盈利，因为公司是其客户的唯一供应商和研发合作伙伴
(ii) 参与咖啡和生物技术部门不可或缺的市场，这可能成为这个大流行时代的未来催化剂
(iii) 具 有吸引力的股息收益率、超强的净利润率和强劲的净现金（下行风险较低）
(iv) 截至 8 月底，Uchi 超过 80% 的员工已完成 2 剂疫苗接种，预计在产能正常化期间 2H21 会更好。


我们看好Uchitec突破三角形态。股价在从 RM3.55 的 52 周高点下跌 17% 至 RM2.92后，股价开始企稳反弹，上周五收于 RM3.19 。由于股价已收于多个关键均线上方，股价突破下降趋势线后可能进一步上探RM3.27，上行目标为 RM3.40 （76.4% FR）和 RM3.55 区域。


买入范围：RM3.10-3.15-3.19
上行目标：RM3.27-3.40-3.55
止损：RM3.05

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2021-09-10 05:44:37 HLIB Retail Research – 10 Sep - Bullish Tracker:

KGB ,0151 (RM1.35)- Main Market, Industrial engineering

Utrend remain intact; accumulate at retracement phase

Time frame: 7 days
Entry: RM1.3-1.34
Stop Loss: RM 1.27
Resistance: 1.4-1.43-1.47
Target price: 1.42-1.44
Risk profile: Moderate

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2021-09-10 05:09:36 HLIB Retail Research – 10 Sep - Bullish Tracker:

QES ,0196 (RM0.735) - Ace Market, Industrial products, Components & Equipments

Expecting short term rebound on support

Time frame: 7 days
Entry: RM0.72-RM0.74
Stop Loss: RM0.7
Resistance: 0.775-0.81-0.87
Target price: 0.77-0.8
Risk profile: Moderate

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2021-09-08 06:08:09 HLIB Retail Research – 8 Sep - Bullish Tracker:

MSC (RM2.31-Not rated) - Main Market, Industrial products & services

Supported on uptrend line, pending breakout resistance

Time frame: 7 days
Entry: 2.26-2.31
Stop Loss: 2.15
Resistance: 2.45-2.53-2.6
Target price: 2.5-2.6
Risk profile: Moderate

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2021-09-07 03:32:06 HLIB Retail Research – 7 Sep - Bullish Tracker:

KUB (RM0.64-Not rated) - Main Market, Industrial products & services

Poised for a triangle breakout in the weekly chart

Time frame: 7 days
Entry: 0.61-0.64
Stop Loss: 0.59
Resistance: 0.67-0.725-0.775
Target price: 0.70-0.725
Latest Book value/share: RM0.87
Netcash/share: 0.69
Risk profile: Moderate

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2021-09-06 06:56:46 HLIB Retail Research – 6 September - Bullish Tracker:

ULICORP, 7133 (RM1.31) - Main market, Industrial Services

Potential breakout symmetrical triangle pattern

Time frame: 7 days
Entry : 1.28-1.31
Stop Loss: 1.2
Resistance: 1.36-1.45-1.57
Target price: 1.45-1.5
Risk profile: Moderate

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2021-09-06 04:55:19 HLIB Retail Research – 6 September - Bullish Tracker:

PEKAT, 0233 (RM0.77) - Ace market, Industrial Services

Uptick bias to retest 0.80

Time frame: 7 days
Entry : 0.75-0.77
Stop Loss: 0.74
Resistance: 0.8-0.85
Target price: 0.8-0.82
Risk profile: High

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