HEALTHCARE SECTOR BACK ON THE RUN !!! THIS STOCK IS ALSO

MAKING MOVES IN THIS SECTOR !!!

Hello to all readers out there. Recently we saw a jump in COVID-19 cases in the USA, Brazil and also a few other major countries. This has caused healthcare sector to resume its rally, with leaders such as TOPGLOVE, HARTA and SUPERMX making strong moves.

HOWEVER, THE RECENT TRADING PATTERNS SUGGEST SOMETHING IS BREWING IN THE COMPANY; MAY BE NEW BUSINESS OPPORTUNTY / CORPORATE MOVES ETC YET TO BE UNLEASHED.

Having said the above, the stock which I'd like to talk about today is NIHSIN RESOURCES BERHAD (NIHSIN - Stock Code 7215, Main Market, Consumer Products & Services)

BASIC INFORMATION ABOUT NIHSIN

NIHSIN has core businesses in a few fields:

i) Premium Stainless Steel Cookware

ii) Personal Protective Equipment (PPE) and Protective Masks

Market Capitalization : RM 73.99 million

Shares Float : 321.7 million

Website : http://www.ni-hsin.com/

1. VENTURE INTO HEALTHCARE TO CONTRIBUTE GOOD FUTURE EARNINGS

Refer below news snapshot from May 14th where CAELY will be manufacturing PPE and face masks for NIHSIN. NIHSIN had then appointed WTK as distributor for the PPE and masks.

With this venture into healthcare, the company mentioned that it would contribute positively towards the group earnings.

https://www.theedgemarkets.com/article/caely-make-face-masks-and-ppe-ni-hsin

https://www.thestar.com.my/business/business-news/2020/05/19/ni-hsin-enters-collaboration-distributorship-agreements-with-wtk

2. DIRECTOR ACQUIRING SHARES THRU OPEN MARKET (ABOUT 12 MIL SHARES SINCE JAN 2020)

If we look at the recent major shareholding changes, we notice that director Mr Khoo Chee Kong and also Datuk Tan Choon Hwa, is collecting shares from the open market. Rough total amount bought was 12 million shares between the 2 major shareholders.

This signals confidence from them, on the prospects of the company moving forward.

3. TECHNICAL ANALYSIS - BULLISH DIRECTION - TRADING ABOVE ALL

EMAS, CURRENTLY IN SIDEWAYS CONSOLIDATION PERIOD

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

A few observations on the daily chart chart:

i. Refer circle, where recently, big volumes started to enter into NIHSIN

ii. Price had broken out above all key EMAs, indicating a bullish trend ahead

iii. Retracement happened towards EMA14, and then price rebounded back indicating a strong support at EMA14

iv. Price is consolidating before futher upmove

CONCLUSION

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

i) Superb prospects ahead with new venture into healthcare (PPE and face mask)

ii) Directors added about 12 million shares in 2020

ii) Chart shows strong bullish trend as the price trades above all key EMAs

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