Comprehensive Analysis of Listed Companies by CIMB – November 22, 2024

Broker: CIMB

Date of Report: November 22, 2024

Infoline Tec Group (0253)

Infoline Tec Group Berhad is recognized for its provision of information technology infrastructure and cybersecurity services. With expertise in managing and maintaining solutions that ensure workable network connectivity, data storage, and efficient application processing, Infoline Tec Group serves a global clientele. The company’s stock has exhibited a promising turnaround, breaking out of a 4-month long triangle pattern with a significant bullish momentum. The breakout, marked by a white candle, indicates the onset of a short-term uptrend, bolstered by increased trading volumes.

The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have both strengthened, suggesting increased buyer momentum. Aggressive traders are recommended to consider a long position, with a stop-loss set slightly below the 20-day EMA at RM0.925. Potential resistance points to watch are RM1.11 and RM1.14, as the stock looks to retest these historical levels.

PLYTEC Holding (0289)

PLYTEC Holding Sdn. Bhd. operates as a holding company, providing digital design, production planning, and engineering solutions, alongside the trading and distribution of general building materials for construction purposes. The company is based in Malaysia and has shown signs of renewed upward momentum in its stock performance.

After completing consolidation from its all-time high of RM0.39, PLYTEC’s stock has broken out above the resistance trend line, backed by increased trading volume. The higher highs and higher lows pattern reinforces a positive outlook. The MACD shows easing pressure, while the RSI indicates strengthening bullish sentiment. Traders are advised to consider a long position, with a stop-loss set at RM0.345. The stock is anticipated to test resistance levels at RM0.385 and RM0.41, with a Fibonacci target of RM0.41.

Duopharma Biotech

Duopharma Biotech maintains a positive outlook with an “Add” recommendation and a target price of RM1.55. The company benefits from Malaysia’s Ministry of Health’s policy of sourcing from multiple suppliers, ensuring no significant downside post the expiry of its insulin contract in April 2025. With global shortages and recovery in supply, Duopharma Biotech is positioned attractively for long-term structural growth in the Malaysian pharmaceutical sector.

Sunway Construction Group

Sunway Construction Group maintains an “Add” recommendation, with a target price of RM6.00. The company’s performance in the third quarter of 2024 was driven by developments in DCs, with expectations for an even stronger fourth quarter. Investors are encouraged to hold onto their positions as the company continues to deliver robust performance.

Dayang Enterprise

Dayang Enterprise also holds an “Add” recommendation, with a target price of RM4.00. The company has achieved a record-high order backlog, suggesting sustained growth and profitability. Investors are advised to maintain their positions to capitalize on this upward trend.

7-Eleven Malaysia Holdings

7-Eleven Malaysia Holdings is given a “Hold” recommendation, with a target price of RM1.98. Despite the strong consumer demand observed in the third quarter of 2024, the recommendation remains neutral, suggesting investors should neither significantly increase nor decrease their holdings in the company.

Market Overview and Strategy

The Actively Managed Portfolio strategy focuses on a medium-term investment approach, leveraging technical analysis to recommend stocks. The portfolio is designed for investors who prefer trend-following strategies, aiming to let profits run while cutting losses short. The maximum trading period for recommended stocks is 1 to 6 months, ensuring positions are closed if upside targets are not met within this timeframe.

As of now, the portfolio remains unchanged and in a risk-off mode. Notably, the final issue of the Trendspotter for the year will be released on December 13, 2024. On December 12, 2024, all open positions will be exited using closing prices, resetting the portfolio to RM1 million at the start of the next year.

Conclusion

In summary, CIMB’s report provides a detailed analysis of the companies under coverage, offering insights into market trends and strategic recommendations. Investors are encouraged to consider the technical indicators and market dynamics discussed to make informed investment decisions.