BNM CUTS OPR BY 0.25 BASIS POINTS !!! THIS CONSTRUCTION STOCK
DEFINITELY TO BE WATCHED !!!
Hello to all readers out there. Today our BNM had cut Overnight Policy Rate (OPR) by 25 basis points to a record low of 1.75%.
This means that loans interest would be reduced in overall and costs of business would significantly be reduced for companies relying on financing for their operations. The main beneficiaries of low interest rates are PROPERTY & CONSTRUCTION Sector.
https://www.theedgemarkets.com/article/bnm-cuts-opr-25bps-175
Having said the above, the stock which I'd like to talk about today is VIZIONE HOLDINGS BERHAD (VIZIONE - Stock Code 7070, Main Market, Construction)
BASIC INFORMATION ABOUT VIZIONE
VIZIONE has core businesses in a few fields:
i) Building Construction
ii) Infrastructure Construction
iii) Property Development
Market Capitalization : RM 279.87 million
Shares Float : 658.52 million
Website : https://vizione.com.my/v2/
1. SUPERB PROSPECTS AHEAD WITH TOTAL ORDER BOOK RM 3.82 BILLION
AND TENDER BOOK OF RM 2.1 BILLION !!!
Refer the snapshot in VIZIONE website on its key business figures up to date:
i. RM 1.89 billion combined completed order book
ii. 19 projects in hand
iii. RM 3.82 billion total order book
iv. RM 2.1 billion tender book
The above order book is huge in comparison to its total market cap of a mere RM 279.87 million.
Some of the recent job wins highlighted in news paper :
-VIZIONE bags RM 96 million condo job from MRCB unit
https://www.theedgemarkets.com/article/vizione-bags-rm96m-condo-job-mrcb-unit
-VIZIONE bags RM 170 million construction project in Kota Kinabalu
https://www.theedgemarkets.com/article/vizione-bags-rm170m-construction-project
2. TRADING WELL BELOW ITS NTA OF RM 1.02 (60% DISCOUNT)
Refer below latest QR summary of VIZIONE. We note that total NTA is RM 1.019, and latest closing price of VIZIONE is 41.5c.
This means that the latest closing price is approximately 60% discount to its total NTA.
Also, refer to the Assets Versus Liabiity Sheet. Total Assets stood at RM 938.9 million, versus total Liabilities at RM 353.3 million. This means an asset surplus of RM 585.6 million.
3. TECHNICAL ANALYSIS - STILL WAY BELOW PRICE BEFORE COVID19
PANDEMIC CRASH - CUP AND HANDLE FORMATION
Refer below the basic price and volume chart with key EMAs for VIZIONE daily chart :
A few observations on the daily chart chart:
i. Before the Covid19 pandemic crash, the price of VIZIONE was at 65c
ii. Hit a low in March 2020, however trading volumes were very little indicating that no major shareholders were selling during this time
iii. Recently hit a high of 55.5c before retracing
iv. Seems to be forming a cup and handle pattern, pending for a break out above the 55c key resistance
v. Should resistance 55c be broken, next level to be tested is 65c pre-Covid19 crash level
CONCLUSION
Considering all the above, I opine that current price for VIZIONE is attractive due to below:
i) Superb prospects ahead with order book total RM 3.82 billion and tender book of RM 2.1 billion
ii) Trading at well below its NTA of RM 1.02 (60% discount)
ii) Latest closing price is still way below pre-Covid19 pandemic crash of 65c, and chart is showing cup and handle formation, pending a breakout at 55c
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
Chart | Stock Name | Last | Change | Volume |
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Created by BURSAMASTER | Sep 22, 2023
Created by BURSAMASTER | Aug 20, 2023
DISCLAIMER: This post serves as an educational analysis and is never meant/ intended to be a buy/sell call or recomendation, whatsoever.
Investors / punters must always do their own due deligence bef
Created by BURSAMASTER | Dec 25, 2022
Created by BURSAMASTER | Oct 23, 2021
ahmadyasni
this netx stuck many months now...still 10c-15c lor..
2020-07-09 00:31