Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

DAMANSARA REALTY BERHAD or DBHD (Code 3484, MAIN Market, Property)

Some basic info on this company:

i. Number of shares float : 318.37 million

ii. Market Cap : RM 103.47 million

iii. Last closing price : 32.5c

iv. DBHD is a diversified conglomerate involved in Property Development, Facilities Management, Parking Management & Cleaning Services.

I had already shared a write-up 2 weeks ago on this company, you may read the link below. This write-up is an additional sharing based on the latest happenings in Malaysia.

https://klse.i3investor.com/blogs/InvesthorsHammer/2020-04-18-story-h1506020445-THIS_STOCK_IS_POISED_FOR_A_POSSIBLY_V_SHAPED_RECOVERY.jsp

DBHD - M'SIA ECONOMY REOPEN ON 4 MAY 2020 !!! THIS COMPANY CLEANING SERVICES WILL BE IN HIGH DEMAND !!!

1. Government Allow Reopening Of Businesses on 4th May 2020 - But To Strictly Follow Ministry of Health SOP

Refer below news coverage by TheEdgeMarkets after the live announcement was made by our Prime Minister on 1st May 2020. 

Basically, majority of businesses are allowed to open on 4th May 2020, provided that they strictly follow the SOP provided by government. 

An example was given by him, of Pak Salleh a restaurant owner. Basically the steps to be followed are as follows:

i. Start off by cleaning the place, utensils, tables and chairs

ii. Tables set at least 2 metres apart

iii. Notices on each table, to limit the person sitting 

iv. Draw a line measuring 1 meter from each other in front of casher

v. Provide hand sanitizers and soaps

vi. Cleaning the table with disinfectant before next customer sits down

vii. Buy face masks for himself and all employees, and wear all the time

viii. Check temperature of customers

ix. Record customers name and phone numbers

As you can see, cleaning is a very essential part of this process, which all businesses not only just restaurants need to comply to.

https://www.theedgemarkets.com/article/govt-eases-economic-and-social-lockdown-substantially-except-few-activities

2. HC DURACLEAN SB - A Full Fledge Cleaning Company Owned by DBHD - This Service Would be In High Demand Moving Forward

Refer their website below:

http://www.hcduraclean.com.my/v4/

HC Duraclean Sdn Bhd is a professional care and cleaning company offering a diverse range of cleaning services to commercial and residential premises.

As the Master Franchisee for Duraclean International Incorporation (USA), HC Duraclean are equippped with the state-of-the-art equipment and machinery plus effective cleaning solution in ensuring of delivering the highest performance standard.

Started its operations in 1997, HC Duraclean has grown from only servicing its parent company facility (DBHD) to now include Aircraft and Airport cleaning. Below a picture of HC Duraclean workers cleaning inside an aircraft.

With the new market landscape changing, business owners would be more hygiene-conscious to ensure that all their facilities and assets are thoroughly cleaned and sanitized, or else they would risk being shut down by the Ministry of Health (MOH) in the case on COVID19 cases being found at their premises.

Among potential markets to be tapped by HC Duraclean in coming future:

i. Premises Cleaning (land based) examples but not limited to airports, harbors, storage facilities, shopping malls, commercial buildings, residential buildings

ii. Assets based cleaning - examples but not limited to aircrafts, ships, buses, trains, commercial vehicles, machineries, utensils

3. Why HC Duraclean ???

Some basic info obtained from their website:

Based on the above, shows the HC Duraclean already has a market reach of all over Malaysia. And, with the rising demand in hygienic solution providers, this number might be growing in the coming future.

With experience spanning over 13 states throughout Malaysia, HC Duraclean has the advantage of operating in different environments for different types of clients. HC Duraclean ensures its staff is trained, committed, and focused through various training programs with its very own Quality Assurance Program.

The cornerstone of HCD’s excellence is the commitment and belief instilled among the staffs and its dedication in ensuring a competitive edge in the market place by consistently demanding excellence in cleaning services. Its strength has always been the ability to serve its client’s requirements with integrity towards developing a long-term business relationship.

The wide range of services include:

i. Professional Commercial Cleaning

ii. Upholstery, carpet, drapery and partition cleaning

iii. Washroom cleaning and supplies

iv. Compound area and landscaping maintenance

v. Waste disposal

vi. Residential home cleaning services

4. TECHNICAL ANALYSIS - Homily Chart - Long Term Investors Adding Position and Waiting for Higher Prices

Let's take a look at the Daily chart of DBHD using Homily software:

A few observations below:

i) From Circle 1, it can be seen that recently DBHD broke out the resistance and it set to be on uptrend mode

ii) From Circle 2, it can be seen that red chips are consistently increasing position and now are about 65% of total. This means that long term shareholders are buying into this stock and holding on to higher prices

Let's take a look at the 60 minute chart for short term direction:

A few observations below:

i) From Circle 1, it can be seen that recently DBHD had experienced a retracement towards support and is now ready to bounce back above

ii) From Circle 2, it can be seen that uptrend momentum is entering this counter after the correction ended

iii) From Circle 3, it can be seen that red chips are maintaining position around 70% and green chips have been totally removed. This indicates that strong holders have taken over from the weak holders, thus allowing less resistance for an uptrend move to happen

CONCLUSION

Based on my opinion, DBHD should be given attention in coming weeks, based on below:

i. Economy to reopen on 4th May onwards, and businesses to adhere to SOP which involves cleaning of premises and assets

ii. HC Duraclean, a subsidiary of DBHD, has good market reach to tap into this changing demand for more hygienic solution services

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR