• A small and niche construction-property developer. Gabungan AQRS (GBAQRS) is a civil and building contractor that specializes in IBS technology as well as a property developer. The group is managed by an experienced management team led predominantly by former engineers of Sunway. Over the years, GBAQRS has successfully completed numerous projects for the government like the LDP extension (RM277m), 43 school blocks in Selangor & KL (RM150m), Federal Reserve Unit Camp in Terengganu (RM125m), the Seremban– Senawang Federal Road (RM110m) etc.
• Construction division. The construction arm contributed an average 48% to FY2013-2014 PBT. Currently, it still has an outstanding order book of RM600m- RM700m (can last until FY16), driven by projects in Klang Valley My Rapid Transit (KVMRT) Package V1, upgrading road works along Jalan Rantau to Sungai Gadut (Negeri Sembilan), Tropicana Metropark, etc.
• Property Development. The group ventured into property development in 2004. Some of its completed projects were The Residency, Kota Damansara (GDV of RM93m), Contours Ulu Kelang (GDV RM157m) and Gombak Grove Setapak (GDV RM62m). Ongoing property development projects are ‘The Peak’ Flagship A of Iskandar Malaysia (GDV RM557m), ‘Permas Centro’ at Permas Jaya, Johor (GDV RM146m), Avenue @ Kinrara Uptown (GDV RM209m), Altium Damansara Perdana (GDV RM331m) etc. In the medium to long term, the group still has a portfolio of future projects to be launched, including Westlake@Puchong (RM649m) and The LINQ@Kinrara Uptown (RM331m). This division contributed an average 52% to FY2013-2014 PBT.
• Opportunity in market selldown. GBGAQRS share prices corrected 37% from a high of RM1.90 (Sep 2014) to a low of RM1.19 (intraday low on 9-11 Jan) before ending at RM1.22 yesterday. We believe current price weakness presents good buying opportunity as bottoming up daily and weekly oscillators coupled with Tweezer bottom candlesticks formation in the oversold region indicate downside risks are ebbing and implying imminent rebound in the near term.
• A decisive breakout above 1.25 or 61.8% FR will spur prices to retest RM1.33- 1.50 zones. Immediate resistance is 61.8% FR at RM1.25. A decisive breakout above RM1.25 will spur prices higher towards RM1.33 (15 Jan high), RM1.38 (50% FR) and our long term objective of RM1.50 (38.2% FR). Critical supports are located at RM1.19 and RM1.17 (15 Jan low). Cut loss at RM1.11 (76.4% FR)

Source: Hong Leong Investment Bank Research - 12 Mar 2015