Technical Analyzer

Kawan Food (7216)
Outlook: Breakout MYR1.89
Levels: MYR2.10, MYR2.25
Exit: MYR1.89
(time frame: 2-4 weeks)

Mah Sing Group (8583)
Outlook: Breakout MYR0.865
Levels: MYR0.94, MYR0.975
Exit: MYR0.865
(time frame: 2-4 weeks)

Iconic Worldwide (9113)
Outlook: Breakout MYR0.505
Levels: MYR0.565, MYR0.60
Exit: MYR0.505
(time frame: 2-4 weeks)

Caely Holdings (7154)
Outlook: Pending breakout MYR0.465
Levels: MYR0.49, MYR0.52
Exit: MYR0.44
(time frame: 2-4 weeks)

Sarawak Oil Palms (5126) (RM4.19): Technical Buy

Targets: RM4.50, 4.70

Stop: RM3.91

Omesti (9008) (RM0.565): Technical Buy 

Targets: RM0.625, 0.66

Stop: RM0.51

Hong Seng Consolidated Bhd: Breathing a new life

• Turnaround fortune is on the table, following the venture into the healthcare segment which allows the group to provide pharmaceutical, medical and healthcare supplies.

• Further diversification into gloves manufacturing with production of 2 nitrile gloves lines in April 2021 is timely.

• Total of 6 nitrile gloves production lines in September 2021 will produce approximately 1.5bn pieces of gloves per annum.

• Technically, a consolidation breakout above RM1.06 may drive price towards the next resistances at RM1.17-1.25, with long term target at RM1.40. 

(i) HONGSENG (S: RM1.00, R: RM1.17-1.25, LT TP: RM1.40, CL: RM0.99)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

MAHSING (RM0.905 – BUY- HLIB RESEARCH TP RM1.41) – Firing both guns 

We like MAHSING due to its “fast turnaround” strategy that enables it to crystalize on land value, generate strong cash flows within a short period and lower upfront costs 

As MAHSING offers exposures to property and glove manufacturing businesses, the group is expected to ride earnings rebound from its property division and a new stream of glove earnings amid sustainable demand from the permanent structural shift in hygiene awareness

We expect FY20 to be a bottomed year and remain upbeat on the longer-term prospects from key projects such as M Vertica and M Centura which are currently in their early stages of construction. Meanwhile, the commencement of its glove venture starting in Apr 2021 will provide a meaningful boost to FY21/22 earnings 

The stock is trading at 10.9x FY21 P/E (16% below its 5Y mean), supported by a strong FY19-22 earnings CAGR of 26% and decent FY21-22 DY of 4.6-5.7%

Trend Positive triangle breakout

R1-R2: 0.975-1.03

LT objective: 1.13

S1-S2: 0.88-0.825

Cut: 0.81