Friday, November 22nd, 2024

Malaysia Stock Market Outlook: FBMKLCI Rebounds, Top Picks for November 2024

Malaysia Retail Research Report: Comprehensive Analysis of Listed Companies

Malaysia Retail Research Report: Comprehensive Analysis of Listed Companies

Broker Name: CGS International

Date: November 14, 2024

Signature International (7246) – Technical Buy

Last Price: 1.44

Entry Price(s): 1.40-1.44

Support 1: 1.32

Support 2: 1.25

Stop Loss: 1.31

Resistance 1: 1.52

Resistance 2: 1.56

Target: 1.52, 1.60

The stock broke out above its neckline of its double bottom pattern in late October. Since then, prices have built a small base above this neckline. Yesterday’s long white candle signals that the stock is extending the potential gain from the double bottom pattern. Supported by the rising EMAs, further upside is expected here. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have strengthened further, indicating that buyers are gaining momentum. Aggressive traders may want to go long here or on weakness with a stop-loss set at RM1.31. On the upside, prices may push on to retest its historical resistances at RM1.52 followed by the next round figure at RM1.60 next.

Ranhill Utilities (5272) – Technical Buy

Last Price: 1.34

Entry Price(s): 1.30-1.34

Support 1: 5.24

Support 2: 5.00

Stop Loss: 1.21

Resistance 1: 6.12

Resistance 2: 6.36

Target: 1.44, 1.50

The stock broke out of its 3-month long triangle pattern yesterday with a white bullish candle. Prices also closed above both the 20-day and 50-day EMAs for the first time in 2.5-months on the back of higher trading volume. Since the triangle was formed above its 200-day EMA, yesterday’s breakout may lead to further buying in the near term. The Moving Average Convergence Divergence (MACD) has moved back into positive territory while the Relative Strength Index (RSI) has pushed beyond the 60pts mark. Both indicators indicate that buying momentum is rising. Aggressive traders may want to go long here or on weakness with a stop-loss set at RM1.21. On the upside, prices may look to push on and test the next resistances at RM1.44 and RM1.50.

Sime Darby Property Berhad (Maintain Add)

Target Price (TP): RM1.94

Expecting stronger earnings in 3QFY24F, underpinned by accelerated progress billings and higher profit margins. Earnings from investment properties are expected to grow exponentially in FY24F-27F with the addition of several new assets. The recommendation is to maintain an Add call with a higher RNAV-based TP of RM1.94, which implies a 1.2x 2025F P/BV (+2.0 s.d. from its 10-year mean of 0.55x).

Dayang Enterprise (Maintain Add)

Target Price (TP): RM4.00

Dayang Enterprise has secured two more Pan-Malaysia contract wins. This development is expected to bolster the company’s revenue and profitability, reinforcing the positive outlook for the stock. The recommendation remains an Add with a target price set at RM4.00.

Hartalega Holdings (Maintain Reduce)

Target Price (TP): RM2.29

Hartalega Holdings experienced operational weakness in 2QFY3/25. Due to these operational challenges, the recommendation is to maintain a Reduce call with a target price of RM2.29.

HSS Engineers (Maintain Add)

Target Price (TP): RM1.48

All systems are go for HSS Engineers as the company secures the Baghdad metro contract. This contract is expected to drive significant revenue growth and enhance the company’s market position. The recommendation is to maintain an Add with a target price of RM1.48.

Actively Managed Portfolio Performance

The portfolio is unchanged today and stayed in risk-off mode this week. Below are the details of the trading portfolio:

Stock Weighting Shares Entry price (RM) Current price (RM) Total cost (RM) Market value (RM) Stop loss (RM) Target (RM) Position Dividend (RM) Profit/loss (RM) Profit/loss (%)
Karex 8% 115,600 0.865 0.860 99,994.00 99,416.00 0.775 0.895/0.96 BUY (578.00) -0.6%
ITMAX System 8% 28,000 3.570 3.420 99,960.00 95,760.00 3.320 3.86/4.00 BUY (4,200.00) -4.2%
Ta Ann Holdings 7% 19,100 4.180 4.570 79,838.00 87,287.00 3.790 4.38/4.51/4.73 BUY 7,449.00 9.3%
Binastra Corp 6% 54,000 1.480 1.480 79,920.00 79,920.00 1.340 1.61/1.65 BUY 0.0%
Top Glove Corp 7% 76,100 1.050 1.100 79,905.00 83,710.00 0.960 1.14/1.21 BUY 3,805.00 4.8%
PGF Capital 6% 37,900 2.110 2.160 79,969.00 81,864.00 1.970 2.25/2.40 BUY 1,895.00 2.4%
Optimax Holdings 6% 115,100 0.695 0.650 79,994.50 74,815.00 0.630 0.77/0.795 BUY (5,179.50) -6.5%
AirAsia X 8% 50,200 1.990 1.910 99,898.00 95,882.00 1.790 2.06/2.20 BUY (4,016.00) -4.0%
Critical Holdings 6% 70,700 1.130 1.050 79,891.00 74,235.00 0.995 1.23/1.35 BUY (5,656.00) -7.1%
KJTS Group 6% 108,800 0.735 0.735 79,968.00 79,968.00 0.660 0.835/0.88 BUY 0.0%

New Purchases: None

Share Sales: None

Cumulative Dividend: 11,881.30

Cumulative Realised Gains/Profits: 259,286.78

Cash Balance + Cumulative Dividend: 411,830.58

Portfolio Value (RM): 1,264,687.58 (26.5%)

KLCI YTD Return: 1,454.66

As at 29 Dec 2023

FBMKLCI Index – Technical View

Last Price: 1,611.50

Support 1: 1,598

Support 2: 1,565

Resistance 1: 1,649

Resistance 2: 1,675

The FBMKLCI rebounded slightly, up by 3.07 points or 0.19% to end the day at 1,611.50. The local benchmark recovered from its intra-day low of 1,602.71 to end the day just a whisker away from top tick, forming a hammer-like pattern. Utilities (+1.02%) led the gainers, followed by consumer products (+0.58%) and technology (+0.53%). Trading volume eased to 2.83bn (down from 2.99bn previously) while trading value fell to RM2.22bn (down from RM2.54bn previously). Market breadth stayed negative for the fifth consecutive day as 435 gainers lost out to 566 decliners. The falling 20-day and 50-day EMAs are likely to put a lid on any rebounds in the near term. Falling below yesterday’s low may signal that the downtrend from 1,675 is continuing, targeting the 200-day EMA (1,593) next. The portfolio stayed in risk-off mode this week.

2024 IPO Tracker

Stock Last (RM) Daily % Chg Intraday High at IPO (RM) % Chg* Ytd % Chg Sector Board Listing Date IPO Price (RM) Market Cap at IPO (RM) Shariah
KJTS Group 0.735 -2.6% 0.500 +47.0% +172.2% Industrial Products & Services Ace 26-Jan-24 0.27 186m Y
Master Tec Group 1.160 -3.3% 0.400 +190.0% +197.4% Industrial Products & Services Ace 29-Jan-24 0.39 398m Y
HE Group 0.540 -1.8% 0.450 +20.0% +92.9% Industrial Products & Services Ace 30-Jan-24 0.28 123m Y
TSA Group 0.760 -1.9% 0.625 +21.6% +38.2% Industrial Products & Services Ace 2-Feb-24 0.55 170m Y
Wentel Engineering Holdings 0.285 +0.0% 0.290 -1.7% +9.6% Industrial Products & Services Ace 6-Feb-24 0.26 299m Y
AGX Group 0.605 +0.0% 0.425 +42.4% +72.9% Transportation & Logistics Ace 7-Feb-24 0.35 151m Y
Alpha IVF Group 0.345 +0.0% 0.325 +6.2% +7.8% Healthcare Ace 22-Mar-24 0.32 1555m N
Prolintas Infra Business Trust 0.935 -0.5% 0.990 -5.6% -1.6% Business Trust Main 25-Mar-24 0.95 1045m Y
Zantat Holdings 0.345 +3.0% 0.420 -17.9% +38.0% Industrial Products & Services Ace 27-Mar-24 0.25 70m Y
SBH Marine Holdings 0.240 -2.0% 0.275 -12.7% +9.1% Consumer Products Ace 8-Apr-24 0.22 195m Y
Keyfield International 2.250 -0.9% 1.950 +15.4% +150.0% Energy

Beng Kuang Marine’s Strategic Shift Drives Profitable Turnaround and Global Expansion

Date of ReportOctober 7, 2024 Broker NameLim & Tan Securities Pte Ltd Business Transformation and Strategic Shift Beng Kuang Marine underwent a significant transformation starting in 2021. The company decided to exit its ship...

Axis REIT: Leading the Charge with Strong Earnings Growth and High Dividend Yields

Date: October 2, 2024Broker: Maybank Investment Bank Berhad OverviewAxis REIT (AXRB MK) is highlighted as the top BUY pick in the Malaysia REIT sector. It is favored for its consistent performance in the industrial...

Oversea-Chinese Banking Corp Ltd: Riding the Wave of Recovery with Promising Technical Indicators

Broker Name: CGS International Securities Singapore Pte. Ltd.Date: October 21, 2024 Overview Oversea-Chinese Banking Corporation Limited (OCBC) offers a comprehensive range of financial services. The Company’s services include deposit-taking, corporate, enterprise and personal lending,...