Morning Market Update – 30 APRIL 2018

Prlexus

Shares Issued : 180.337M

Market Cap : 121.727m

Syariah : Yes

Short Sell Indicator : No

NTA : 1.28

PE : 6.54

NEWS COVERAGE

11 April 2018

http://www.theedgemarkets.com/article/prolexus-expected-resume-growth-fy19

Maintain buy with a target price (TP) of 80 sen. Prolexus is an original equipment manufacturer for major global sports apparel brands such as Nike, Under Armour and Asics, with manufacturing facilities in Batu Pahat, Penang and China, with a total production capacity of 14 million pieces per annum. Under Armour accounts for 30% of its revenue, followed by Nike at 20% and Asics 10%. Prolexus was in a net cash position with RM23.1 million as at Jan 31, 2018, and is expected to recover from a slower FY18 and resume its growth trajectory with double-digit earnings growth for FY19 and FY20, with contributions from the fabric mill. Meanwhile, we expect net dividend yields of 3.2% and 4% over the next two years

Further News Coverage on the Under Armour and NIKE.

1. Mixed view for Under Armour Sales.Therefore, future business outlook for Prlexus remain uncertain.  Information can be obtain by clicking the link http://money.cnn.com/quote/forecast/forecast.html?symb=UA
2. Mixed view with positive bias for NIKE. Various Target price given by research analyst in this site. https://www.tipranks.com/stocks/nke/price-target
3. How does world cup boost the sales of NIKE? By clicking the article in below, you shall see how NIKE benefit from the World Cup. http://www.businessinsider.com/nike-earnings-preivew-2014-9/?IR=T&r=MY
4. Poor perception on under armour. https://www.businessinsider.my/teens-say-under-armour-isnt-cool-2018-4/?r=US&IR=T

VALUATION MODEL

NTA : 1.28

MOS : 0.895 ; 1.00

TECHNICAL OUTLOOK

SYSMETRICAL TRIANGLE FORMATION

PRLEXUS LAST DONE PRICE : 0.675

BOLLINGER-BAND : POSITIVE

5 EMA CROSS 20 MA : POSITIVE

MOMENTUM : NEGATIVE

MACD : HEADING TO BE NEGATIVE

SUPPORT : 0.63 (-6.67%) ; 0.66 (-2.22%)

RESISTANCE : 0.725 (+7.41%) ; 0.76 (+12.59%) ; 0.785 (+16.30%)

Catalyst :

1. World Cup will help to boost sales for Under Armour and Nike. Believe upcoming quarter result for PRLEXUS will be excellent.
2. On top of that, Prlexus also do have this division so call Powerscreen which you could see LCD screen advertisement. Places where you could see such advertisement located at Time Square, Maju Junction, KLCC,Ampang Point, Klang Bkt Tinggi Aeon, Jalan University, Komtar, city Square. Some of their advertisement could be view by clicking this link http://www.powerscreen.com.my/products/powerseries
3. Target Price given by MorningStar issued on 29 April 2018 which is 1.11. Source obtain from http://quotes.morningstar.com/stockq/analysis-report?&t=XKLS:8966&region=mys&culture=en-US&version=RET&cur=&test=QuoteiFrame&e=eyJlbmMiOiJBMTI4R0NNIiwiYWxnIjoiUlNBLU9BRVAifQ.d8atY61cJugb_u7RwXA8AJpAiteGb344Ly69Xh6_pObqFXLlV92xiVJZUazRYKAepmf-6BsKztGfgoTcHW7ShFV7UfTvi4Pee6CWGeGMCC4JQBHqVo4DzO8qnRMAPFHCjODqoHC2iwgETTLG2ue2Yq0SIElsAtuUkFpovE7Xhso.oapsZtmHLf5DD8hd.85lVIXBsCDYAbGOsOl88M3PuD6_efOijuzT2UPA6Xf8RwvswhbrnhWBeNrllBzaMNnPp_858RILfi2eF0rnOVRwI7dvzKACvhFvCLE4h4CjBnzahadsQvjzEOiVf5MAXzRMEsluNk84p2HIOy62vXIELsdVFqPtKGW0_y8HbO05LpqmimBCqKm2Xn4Z7AqWCMniKnZYIXOPr0xDbvAcUX8anwLdx_O0qetFS3XU.fA6nDjUZtx5hGgrPVfIJYA

Support Resistance given above is for the time frame within 2 weeks to 2 months’ time

Trade with wisdom ;

House of Happiness;

SMART MONEY ;

TREND FOLLOWER

https://www.facebook.com/Stevent-Hee-1669441599811471/

Disclaimer: Above information obtain at the best available source of information. Any inaccurate information, writer should not held any responsibility due to investment losses arise from above article. It does not solicit buy or sell call on the stock, it merely for educational sharing purpose. Kindly consult your investment broker pertaining any investment decision.