Hello to all readers out there. Recently, industrial activities have been picking up across the world as COVID19 vaccine sparks economic recovery.

Having said the above, the stock which I'd like to talk about today is 

MCE HOLDINGS BHD(MCEHLDG - Stock Code 7004, Main Market, Industrial Products & Services)

BASIC INFORMATION ABOUT MCEHLDG

Website: https://multicode.com.my/

Related Links: Bursa | Annual Report | Announcement

1. POSTED IMPROVED PROFIT FOR QoQ 120.11% & YoY 118.35% FOR QUATER 31 JULY 2020!!!

COMING QR IS EXPECTED TO BE RELEASED BY 3RD OR 4TH WEEK OF DECEMBER. I ANTICIPATE A BETTER THAN EXPECTED QR

2.    CONTRACT WITH PERODUA ANNOUNCED 11 DECEMBER 2020

https://www.klsescreener.com/v2/announcements/view/3276901

RESEARCH & DEVELOPMENT

Vehicle technology has evolved tremendously over the past few decades, Research and Development plays a crucial role of business success in today’s competitive automotive industry, this is especially vital for SME such as MCE in the local Malaysia automotive industrial context, and it is considered as a competitive advantage over many local automotive suppliers without design capability. In contrast with many other local Malaysian automotive component suppliers who rely upon customers for their sources of design, MCE tends to rely more heavily on internal R&D for innovative design.

Multi-Code R&D department was setup in 1990 since the company was founded. Today MCE R&D consists of several sub sections namely Mechanical Design, Electronic Design, Project Management/Warranty Analysis, Testing, Document & Change Management. As a leading local automotive component supplier, our 30 over R&D staffs are tasked to create new product that meet todays’ customer requirements and research on new technologies to fuel future product developments.

CONCLUSION

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

i) SMALL MARKET FLOAT. NUMBER OF SHARES ISSUED VERY SMALL - ONLY 79 MILLION MAKING IT A LIGHT COUNTER

ii) NTA BACKING of 1.735; YoY PROFIT GROWTH; LATEST QR PROFIT IS 2 YEARS HIGH

iii) FUTURE GROWTH POTENTIAL SEEMS GOOD GOING FORWARD

iv) MORE CONTRACTS IS EXPECTED TO BE SECURED FROM THE AUTO SECTOR GOING FORWARD

V) ANTICIPATE BETTER THAN EXPECTER QR TO BE RELEASED THIS MONTH

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