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