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
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