• Technical BUY on breakout with +16.2% potential return
• Last price: RM0.89
• Target price: RM0.99, RM1.04
• Support: RM0.84
• Stop-loss: RM0.835

BUY on breakout with a target price of RM1.04 and stop-loss at RM0.835. Yesterday, MHC formed a bullish candlestick and exited the consolidation phase, and could break above the RM0.895 mark. The uptick in the RSI together with the increase in trading volume suggest buying momentum is set to continue in the near term. We expect the stock to penetrate the breakout level of RM0.895. Thereafter, it should continue to trend higher towards our target prices of RM0.995 and RM1.04 in the near term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 11 Aug 2017