Highlights

Kenanga Research & Investment

Author: kiasutrader   |   Latest post: Tue, 4 Aug 2020, 6:38 PM

 

Daily technical highlights – (HEVEA, LATITUD)

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HeveaBoard Bhd (Trading Buy)

  • HEVEA shares could ride on the buying momentum of furniture-related stocks, playing catch-up with its peers as the likes of FIHB (+15.7%), POHUAT (+13.3%) and LIIHEN (+12.8%) saw positive price actions yesterday.
  • The stock, which rose 7.9% to end at RM0.41 yesterday, is on the verge of breaking out from a downward sloping price channel that stretches back to April 2018.
  • A likely breakout is expected to push the stock towards our resistance target of RM0.50 (R1), before possibly challenging the next resistance threshold of RM0.60 (R2) thereafter. This translates to potential upsides of 22% and 46%, respectively.
  • We have pegged our stop loss level at RM0.33 (or 20% downside risk).
  • From a fundamental perspective, HEVEA – which made a net profit of RM1.9m (-5.4% YoY) in 1QFY20 – is currently trading at an attractive discount of 45% to its end-March 2020 BV per share of RM0.75, which is backed by net cash & short-term investments of RM116.1m (or 20 sen per share).

Latitude Tree Holdings Bhd (Trading Buy)

  • LATITUD is another laggard play on the thematic buying of furniture-related stocks, which are seen as potential beneficiaries of any prolonged US-China trade war.
  • Technically speaking, the stock has been trending downwards within a negative sloping price channel since February 2016. Still, an intermediate support could be seen around current price levels as the shares (which rose 7.5% to finish at RM2.15 yesterday) were consolidating inside a tight range recently.
  • This could pave the way for the stock to stage a technical rebound to reach our resistance target of RM2.60 (R1) (+21% potential upside) as it climbs towards the upper end of the price channel. A further breakout may then lift the shares to the next resistance line of RM2.95 (R2) (+37% potential upside).
  • Our stop loss level is set at RM1.75 (or 19% downside risk).
  • Fundamentally, LATITUD – which recently reported a net profit of RM2.6m in 3QFY20 (from a net loss of RM2.1m in the previous year’s quarter) – is presently trading at a steep discount of 65% to its end-March 2020 BV per share of RM6.10, which is backed by net cash & short-term investments of RM81.0m (or 85 sen per share).

Source: Kenanga Research - 2 Jul 2020

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Labels: HEVEA, LATITUD

Related Stocks

Chart Stock Name Last Change Volume 
HEVEA 0.41 0.00 (0.00%) 2,036,900 
LATITUD 1.93 -0.04 (2.03%) 27,500 

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robin7900 Di samping itu, prestasi kewangan kedua-dua syarikat juga kekal kukuh. Pada akhir bulan Februari, tunai bersih Lixing Industrial mencecah RM157.9 juta, 88 sen sesaham, merangkumi 32.3% daripada nilai pasaran; tunai bersih institusi Jializi adalah 8110 10,000 ringgit, 27 sen sesaham, menyumbang 46.6% daripada nilai pasaran.

Bagi syarikat panel kayu, Hong Leong mengatakan bahawa Evergreen Fiberboard (EVERGRN, 5101, kumpulan perkhidmatan produk industri motherboard) dan Yiweiya (HEVEA, 5095, kumpulan perkhidmatan produk industri motherboard) menghadapi tekanan daripada kelebihan pasaran.

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Sebelumnya, pengeluar papan kayu di Thailand dan Vietnam meningkatkan kapasiti pengeluarannya untuk membekalkan pasaran Timur Tengah, tetapi sejak Amerika Syarikat mengenakan sekatan perdagangan ke negara-negara Timur Tengah sejak 2018, pasaran papan kayu mempunyai kapasiti berlebihan dan harga jual rata-rata produk juga turun dengan ketara. Oleh kerana tidak ada tanda-tanda untuk mengangkat sekatan perdagangan AS, bank menjangkakan trend penurunan harga produk yang disebabkan oleh penawaran berlebihan ditangguhkan hingga separuh kedua tahun ini.
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