Comprehensive Analysis of Malaysian Listed Companies

Broker: CGS International

Date of Report: November 6, 2024

MKH Oil Palm (East Kalimantan) (5319) – Technical Buy

Last Price: 0.64

MKH Oil Palm has been on an impressive upward trajectory, forming its fourth consecutive white candle. The stock closed at its all-time high, driven by follow-through buying after a bullish flag breakout earlier in the week. The improving exponential moving averages (EMAs) suggest further upside potential. The Moving Average Convergence Divergence (MACD) has confirmed a golden cross, while the Relative Strength Index (RSI) indicates increasing buyer momentum.

Traders might consider initiating long positions at the current levels or on any weakness, with a stop-loss set at RM0.59. On the upside, prices might retest Fibonacci targets of RM0.675 and RM0.70.

Solarvest Holdings (0215) – Technical Buy

Last Price: 1.67

Solarvest Holdings has shown a strong performance, closing at its 2.5-month high on the back of rising volume. The higher high and higher low structure from the RM1.44 low indicates the beginning of a new uptrend. The MACD continues to climb, and the RSI has strengthened, signaling rising buying momentum.

Aggressive traders might consider going long at current levels or on any weakness, with a stop-loss set at RM1.51. The stock is poised to test historical resistances at RM1.75 and RM1.83.

Dayang Enterprise (Maintain Add with a TP of RM4.00)

Dayang Enterprise Holdings Berhad (DEHB) has secured its first Pan-Malaysia maintenance, construction, and modification (MCM) and hook-up and commissioning (HUC) contract win, estimated to be worth around RM1 billion. This win strengthens Dayang’s order book and enhances earnings visibility. The company is expected to secure more contracts in the future. The stock is maintained with an “Add” rating and a GGM-based target price of RM4.00.

Unisem (Maintain Reduce with a lower TP of RM1.60)

Unisem’s earnings trend remains patchy, prompting a “Reduce” rating with a lower target price of RM1.60. The company’s financial performance has been inconsistent, raising concerns about its long-term growth prospects.

Astra International (Maintain Add with a higher TP of Rp6000)

Astra International has posted a strong performance across multiple segments in 3Q24, leading to a higher target price of Rp6000. The company continues to show robust growth, making it a favorable investment option.

Actively Managed Portfolio

The Actively Managed Portfolio is designed for medium-term investments, recommending stocks based purely on technical analysis. The portfolio aims to let profits run and cut losses short. It occasionally includes reversal plays, which typically have a shorter holding period compared to trend-following counterparts. The portfolio is suited for investors who can monitor the stock market occasionally. The maximum trading period for recommended stocks is 1 to 6 months.

The portfolio began with an initial capital of RM1,000,000 at the start of the year. Current portfolio highlights include:

• Karex: Entry price: 0.865; Current price: 0.855; Stop loss: 0.775; Target: 0.895/0.96; Status: Buy
• ITMAX System: Entry price: 3.570; Current price: 3.460; Stop loss: 3.320; Target: 3.86/4.00; Status: Buy
• Ta Ann Holdings: Entry price: 4.180; Current price: 4.360; Stop loss: 3.790; Target: 4.38/4.51/4.73; Status: Buy
• Binastra Corp: Entry price: 1.480; Current price: 1.470; Stop loss: 1.340; Target: 1.61/1.65; Status: Buy
• Top Glove Corp: Entry price: 1.050; Current price: 1.080; Stop loss: 0.960; Target: 1.14/1.21; Status: Buy
• PGF Capital: Entry price: 2.110; Current price: 2.220; Stop loss: 1.970; Target: 2.25/2.40; Status: Buy
• Optimax Holdings: Entry price: 0.695; Current price: 0.640; Stop loss: 0.630; Target: 0.77/0.795; Status: Buy
• Innoprise Plantations: Entry price: 1.570; Current price: 1.640; Stop loss: 1.480; Target: 1.69/1.76; Status: Buy
• AirAsia X: Entry price: 1.990; Current price: 1.910; Stop loss: 1.790; Target: 2.06/2.20; Status: Buy

New purchases include MKH Oil Palm with an entry price of 0.640. Share sales include Gamuda, which saw a significant profit after surpassing the second target.

FBMKLCI Index – Technical View

Last Price: 1,620.70

The FBMKLCI index edged up by 4.27 points to end the day at 1,620.70. The broader market was mostly positive, with the largest drawdown coming from industrial products (-1.48%), followed by energy (-0.60%) and property (-0.28%). Healthcare (+0.70%), financial services (+0.62%), and plantation (+0.43%) led the gainers. Trading volume increased to 2.59 billion, up from 2.42 billion previously, while trading value rose to RM2.47 billion, up from RM2.15 billion previously. Market breadth stayed positive, with 512 gainers outpacing 476 decliners.

The index gapped up for a second consecutive day, although the formation of a possible hanging-man candle might indicate a slowing buying momentum.

2024 IPO Tracker

The IPO tracker for 2024 highlights several companies making significant moves:

• KJTS Group: Last Price: 0.685; YTD Change: +153.7%; Sector: Industrial Products & Services
• Master Tec Group: Last Price: 1.170; YTD Change: +200.0%; Sector: Industrial Products & Services
• HE Group: Last Price: 0.555; YTD Change: +98.2%; Sector: Industrial Products & Services
• TSA Group: Last Price: 0.795; YTD Change: +44.5%; Sector: Industrial Products & Services
• Wentel Engineering Holdings: Last Price: 0.285; YTD Change: +9.6%; Sector: Industrial Products & Services
• AGX Group: Last Price: 0.520; YTD Change: +48.6%; Sector: Transportation & Logistics
• Alpha IVF Group: Last Price: 0.350; YTD Change: +9.4%; Sector: Healthcare
• Prolintas Infra Business Trust: Last Price: 0.940; YTD Change: -1.1%; Sector: Business Trust
• Zantat Holdings: Last Price: 0.335; YTD Change: +34.0%; Sector: Industrial Products & Services
• SBH Marine Holdings: Last Price: 0.245; YTD Change: +11.4%; Sector: Consumer Products
• Keyfield International: Last Price: 2.110; YTD Change: +134.4%; Sector: Energy
• Topmix: Last Price: 0.500; YTD Change: +61.3%; Sector: Industrial Products & Services

Global and Local Market Performance

Global indices showed positive momentum, with the Dow Jones, S&P 500, and Nasdaq indices posting gains of 1.0%, 1.2%, and 1.4%, respectively. European and Asian markets also saw gains, with the Euro Stoxx 50 up by 0.4% and Japan’s Nikkei-225 up by 1.1%. The local Malaysian market, represented by the FBMKLCI, rose by 0.3%, closing at 1,620.70.

Currency and Commodity Overview

The US Dollar Index fell by 0.4%, while the Malaysian Ringgit declined by 0.1%. In the commodity markets, gold prices remained stable, while silver gained 0.6%. Crude oil prices saw modest gains, with WTI Crude Oil up by 0.7% and Brent Crude Oil up by 0.5%.

Key Takeaways

The Malaysian stock market is showing positive momentum, with several listed companies performing well. Stocks like MKH Oil Palm and Solarvest Holdings are demonstrating strong technical indicators, making them attractive options for traders. The IPO market is also vibrant, with several companies posting significant gains since their listing.

Investors should stay informed about market trends and consider technical analysis for making informed trading decisions. The Actively Managed Portfolio by CGS International provides a robust framework for medium-term investments, focusing on cutting losses short and letting profits run.