• Business profile. Mitrajaya Holdings Berhad is an investment holding company. The Company is engaged in construction, property development, manufacturing and trading, and healthcare industries. It operates in five segments: Construction, Property development, Manufacturing and trading, Healthcare, and Others.
• We like MITRA mainly due to its orderbook of RM1.8bn (4.7x cover ratio) to sustain earnings trajectory and job wins to pick up in 2H (YTD: RM230m) with RM2.8bn worth of tenders in the pipeline. MITRA remains HLIB’s Institution Research top pick amongst the small cap contractors (with a target price of RM1.95) as it offers a compelling case of robust growth (3 year CAGR: 24%).
• After tumbling from peak of RM1.38 to recent low of RM0.80, share price is grossly overs old, triggering “Bottom-fishing” signal. On chart wise, Hammer candlestick on weekly chart indicated that selling pressure is abated. Coupled with bottoming-up daily MACD, RSI and Slow Stochastics oscillators, we advise traders to take the opportunity to accumulate.
• Further upside targets are RM1.00 and RM1.12 (23.6% FR), with long term target price of RM1.38 (historical high). Immediate supports are pegged at RM0.91 and RM0.89. Cut loss below RM0.87.

Source: Hong Leong Investment Bank Research - 4 Sep 2015