CMCO POTENTIALLY OVER SOON !!! OUR IMPIAN WILL BECOME REALITY !!!

Hello to all readers out there. As per your info, our government Conditional Movement Control Order (CMCO) will be ending on 9th June 2020, another 7 days to go.

With the situation of COVID19 improving in our country, there are signs that might point to the CMCO being ended on this 9th June 2020.

The most important signs we can see from the market, are the strong momentum of counters which would benefit once the CMCO is lifted.

With the situation of COVID19 improving in our country, there are signs that might point to the CMCO being ended on this 9th June 2020. To name a few counters, which rallied strongly today:

1. GENTING : Up 43c, from RM 4 to close at RM 4.43

2. GENM : Up 24c, from RM 2.36 to close at RM 2.60

3. AIRPORT : Up 72c, from RM 5.07 to close at RM 5.79

4. AIRASIA : Up 12c, from 70.5c to close at 82.5c

All the above counters will benefit once CMCO is lifted, as GENTING will be reopening their hotels and casino, and passengers allowed to air travel again.

Having said the above, the stock which I'd like to talk about today is IMPIANA HOTELS BERHAD (IMPIANA - Stock Code 7243, Main Market, Consumer Products & Services)

BASIC INFORMATION ABOUT IMPIANA

IMPIANA Hotels Berhad is a company involved mainly in the management and operation of IMPIANA brand hotels.

List of their hotels include:

Malaysia : 

i. IMPIANA KLCC

ii. IMPIANA Hotel Ipoh

NA KLCC iii. IMPIANA HOTEL SENAI

Thailand : 

i. IMPIANA Private Villas Kata Noi, Phuket

ii. IMPIANA Resort, Patong

iii. IMPIANA Resort, Chaweng Noi, Koh Samui

Indonesia : 

i. IMPIANA Private Villas Seminyak

ii. IMPIANA Private Villas, Cemagi

iii. IMPIANA Private Villas, Ubud

Market Capital : RM 65.26 million

Shares Float : 767.74 million

UNWTO LAUNCHED GLOBAL GUIDELINES TO REOPEN TOURISM

Recently, the World Tourism Organization (UNWTO) released a set of guidelines to help tourism sector emerge strong and more sustainably from COVID-19. The guidelines highlight the need to act decisively, to restotre confidence to global tourism sectors.

The guidelines were produced in consultation with the Global Tourism Crisis Committee which aims to support governments and private sector to recover from this crisis.

I believe that our local government will also be studying and adapting such guidelines for the tourism sector reopening which would happen in the near time (hopefully). 

https://moderndiplomacy.eu/2020/05/30/unwto-launches-global-guidelines-to-reopen-tourism/

1. TRAVEL INDUSTRY PLAYERS ARE BUSY PLANNING FOR INDUSTRY REBOUND - FOCUS ON LOCAL TOURISM, CUTI CUTI MALAYSIA TO BENEFIT IMPIANA MALAYSIA

Refer below article from NST. Local travel industry players, are now planning their marketing strategies to capture the market once CMCO is lifted.

However, as a start, LOCAL TOURISM will be focused on instead of overseas, as government will wait for the COVID19 infection chain to be fully destroyed to allow our local people to travel overseas. 

Hence, IMPIANA hotels in Malaysia will be also a beneficiary of the industry focus to enhance local tourism (CUTI CUTI MALAYSIA).

https://www.nst.com.my/news/nation/2020/06/596896/travel-agencies-keep-busy-planning-industry-rebound

2. PM TO LAUNCH SHORT TERM ECONOMIC RECOVERY PLAN THIS MONTH - MIGHT INCLUDE INCENTIVES FOR TOURISM SECTOR

Based on below article by the end today, we see that our government will be announcing more stimulus plans to help the local economy.

No details of this is available to public yet, but I believe that since tourism sector has been the only sector that has yet to be revived and opened, this sector will be getting the main benefit from this economic recover plan.

https://www.theedgemarkets.com/article/pm-launch-shortterm-economic-recovery-plan-month-says-tengku-zafrul

3. THAILAND PLANNING TO OPEN TO FOREIGN TOURISTS ON 1ST JULY 2020 - BENEFIT FOR IMPIANA THAILAND

Refer below news article. As THAILAND only reported single digit cases recently, the THAI government announced plans that they will re-open to foreign tourists from July 1st.

This would be a positive boost for IMPIANA, as they have 3 resorts located in THAILAND.

https://secretmanchester.com/thailand-re-open-to-international-tourists-july/

4. IMPIANA HOTEL KLCC IS ONE OF THE COVID19 DESIGNATED QUARANTINE HOTELS

Refer below news link earlier in April 2020. Note that IMPIANA KLCC is one of the COVID19 designated gazette areas, therefore they would still have revenue despite the recent CMO which doesn't allow tourism activitiy to happen.

https://www.msn.com/en-my/news/national/prominent-five-star-hotels-gazetted-as-covid-19-quarantine-stations/ar-BB12bgT5?li=BBr8Mk9

5. TECHNICAL ANALYSIS - BREAKOUT OF EMA43 ON DAILY CHART, WITH SURGE IN TRADING VOLUMES

Refer below the basic price and volume chart with key EMAs for IMPIANA on daily chart :

A few observations on the monthly chart:

i. Recent high of IMPIANA was 14.5c on 5th March 2020, before the CMO was enforced by the government

ii. After the MCO enforced, all tourism stocks took a beating and so did IMPIANA, dropping to a low of 5.5c on 19/3/2020

iii. Gradually, as the MCO is relaxed and CMCO is omplemented, we see improved interest in this counter

iv. Today, 2nd June 2020, saw a surge in volume trading to 5.9 million shares, as the price closed above key EMA43 (2 months EMA)

v. Next resistances at 14.5c (recent high), EMA 200 at 19c and EMA 365 at 27c.

CONCLUSION

Considering all the above, I opine that current price for IMPIANA is attractive due to below:

i) Global tourism guidelines posted on May 2020 to assist governments and private sector in boosting the tourism sector

ii) Local tourism players are focusing on local tourists as a kick start, therefore benefiting IMPIANA Malaysia

iii) PM to launch short term economic recovery plan this month, which might include incentives for tourism sector

iv) THAILAND plans to allow foreign tourism starting from 1st July 2020, which should benefit IMPIANA Thailand

v) IMPIANA KLCC as one of the COVID19 designated quarantine hotels, means that revenue is not totally lost during the MCO period

vi) Breakout of Key EMA43 on Daily Chart, with surge in trading volume

LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.

Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.

BURSAMASTER