Key Investment Ideas
- Cahya Mata Sarawak (2852) – Technical Buy
- Technical Indicators: The stock is in a favorable technical position, having recently broken out of a triangle pattern. This breakout, coupled with a bullish candle and higher trading volumes, suggests a strong upside potential. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) both support this positive momentum.
- Price Targets: The report sets a target price range of RM 1.45 to RM 1.50, with a recommended stop-loss at RM 1.19 to manage downside risk.
- Bermaz Auto (5248) – Technical Buy
- Short-term Uptrend: Bermaz Auto has recently broken out from a downtrend line, signaling the start of a short-term uptrend. The MACD and RSI indicators show bullish signals, suggesting that the stock may test new highs soon.
- Price Targets: The report recommends an entry price between RM 2.45 and RM 2.51, with targets set at RM 2.60 and RM 2.80. The stop-loss is recommended at RM 2.29 to protect against potential downside.
Sector and Stock-Specific Insights
- Hong Leong Bank (HLB): The bank continues to show strong performance, particularly in terms of its net interest margin (NIM), which has expanded for five consecutive quarters. The report maintains an “Add” rating with a higher target price of RM 30.00, citing HLB’s robust loan growth and low credit charge-off rates.
- Sunway Bhd: The report expects Sunway’s strong earnings momentum to continue, driven by its healthcare group (SHG). This momentum is likely to lead to an initial public offering (IPO) soon. The stock is maintained with an “Add” rating and a target price of RM 4.65.
- Tenaga Nasional: The national utility company’s generation business outperformed market expectations, leading to the maintenance of an “Add” rating with a target price of RM 15.60.
- Alliance Bank Malaysia Berhad: The bank is riding on robust loan growth, leading to an “Add” rating with a target price of RM 5.10.
Portfolio Management
The report also discusses the performance of the actively managed portfolio, which is currently in a “risk-on” mode. The portfolio’s value stands at RM 1,248,042.58, reflecting a 24.8% gain from the initial capital of RM 1,000,000. Stocks in the portfolio include Three-A Resources, Magni-Tech Industries, Mitrajaya Holdings, Binastra Corporation, and Cuscapi, with varying levels of gains and losses.
Conclusion
This report provides a positive outlook for several Malaysian stocks based on technical analysis, with specific recommendations for Cahya Mata Sarawak and Bermaz Auto. It also highlights the strong performance of key sectors such as banking and utilities, suggesting continued opportunities for investors in the Malaysian market.
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