Highlights

HLBank Research Highlights

Author: HLInvest   |   Latest post: Thu, 26 Nov 2020, 4:50 PM

 

Chin Hin Group - Cheaper Proxy to Solar Theme?

Author:   |    Publish date:


We like CHINHIN for its (i) recovering net profit over the past 3 quarters, (ii) attractive valuation of 13.3x PE (26.5% below its 2Y historical average of 18.1x), (iii) solid FY18-20f net profit CAGR of 30.7%. Also, its 34% shareholdings in Solarvest may translate to a potential earnings boost moving forward. Technically, it is oversold after the recent selldown and our indicator is suggesting that CHINHIN is warrant for a technical rebound in the near term. Resistance is set around RM0.64-0.66, followed by a LT TP of RM0.69. Support is pegged around RM0.54-0.555, while stop loss is set around RM0.53.

Recovering mode, undemanding valuation and solid growth. CHINHIN registered growing net profit of RM4.0m in 4Q18 to RM6.5m in 3Q19. Currently, CHINHIN is trading at an attractive valuation of 13.3x PE (26.5% below its 2Y average PE of 18.1x), supported by a solid 30.7% FY18-20f net profit CAGR.

Solarvest contributions could boost CHINHIN’s earnings. CHINHIN holds 34% in Solarvest and we believe this should be a booster for CHINHIN. Based on the growing net income trend of Solarvest from RM4.2m in FY16 to RM11.1m in FY19, coupled with consensus earnings forecast of Solarvest (FY21f-22f: RM16.6m-17.9m), this would translate to a potential earnings boost of c.RM5.6-6.1m for CHINHIN.

Selloffs likely to be overdone and anticipating for further rebound. Based on the recent sell down in price, we believe its declining trend is overdone and may warrant a rebound in the near term. Our indicator is providing a technical rebound signal and volume is picking up over the past 3 days. Resistance is located around RM0.64-0.66, while LT TP stood at RM0.69. Support is pegged around RM0.545-0.555 with a cut loss set around RM0.54.

Source: Hong Leong Investment Bank Research - 7 Feb 2020

Share this
Labels: CHINHIN

Related Stocks

Chart Stock Name Last Change Volume 
CHINHIN 1.37 0.00 (0.00%) 1,700 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards
 
 

782  345  529  807 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 AT 0.20+0.03 
 VIVOCOM 0.805-0.05 
 IRIS 0.355+0.055 
 KANGER 0.180.00 
 EAH 0.035+0.005 
 XDL 0.070.00 
 ASIABIO-OR 0.01-0.025 
 KNM 0.205-0.005 
 KSTAR 0.305-0.03 
 AT-WC 0.20+0.045 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. Jaks Resources - Jaks Hai Duong Power Plant Achieved Commercial Operation Date (COD) !!! DK
2. Should we buy Top Glove since it has been plunging due its 28 factories shut down? Koon Yew Yin Koon Yew Yin's Blog
3. Kelington Group Berhad ("KGB") - Above Expectations (TP: RM2.30; +35% upside) by Kenanga Research Investment Ideas - Value and Growth
4. TOP GLOVE LOCKDOWN AND SUPERMAX SHARE PRICE The way I see it
5. 【Growth成长股】AWC Berhad (7579) – Benefit from Strong Order Book Amounted Close to RM1Bil Sanitize and Disinfection Healthcare Stocks
6. Top Glove’s 28 factories shut down should benefit other glove makers - Koon Yew Yin Koon Yew Yin's Blog
7. VIVOCOM: End of Day Report (26 Nov 2020) See Jovin
8. O&G sector making a comeback: SERBA DINAMIK BERHAD the Winner! (TP: RM2.70 by KENANGA) KV Blog
PARTNERS & BROKERS