• Two pillars of growth. GREENYB is involved in two main businesses: i) The plantation products segment is engaged in the development, manufacturing and marketing of agricultural products and services based on agro-technology and project management of a plantation. Considerable progress was achieved in the development of Organic and Bio fertilizer, as the Group foresees the expansion of rubber and oil palm into marginal environments. Currently, the Group has 2,800 ha of landbank for rubber in the state of Kelantan, both via JVs and direct investment through its subsidiaries. The organic fertilizer factory in Cambodia is currently in pilot scale production. ii) The non-plantation product is engaged in the manufacturing and marketing of plastic-related products. Its plastic products include plastic kitchen wares, picnic set, and plastic cups, plates and cutleries. For the nonplantations business segment, the Group focuses on improving the formulation of existing composite material as well as formulating new composite material. A new range of composite material is expected to be rolled out soon for the manufacture of durable plant pots as well as other products.
• Poised for a triangle breakout. Having corrected 36.9% from 52-week high of RM0.325 (22 Dec 2015) to a low of RM0.205 (28 Jan), GREENYB’s s hare prices have been steadily trending upwards to close at RM0.245 yesterday. We believe GREEN YB’s share price is already at the tail end of its ST triangle consolidation pattern for an imminent breakout soon.
• A decisive breach above RM0.255 (downtrend line and 14 mar high) is likely to spur prices higher towards the RM0.28 (100-w SMA) before reaching our long term objective of RM0.30 (50% FR). Key supports are RM0.235 (20-d SMA) and RM0.23 (30-d and 100-d SMAs). Cut loss at RM0.225.
• Attractive risk to reward ratio with 22.4% upside against 8.2% downside. All in, we see a good risk to reward ratio for investor with a theoretical entry price of RM0.245 given that the downside to the cut loss zone of RM0.225 is 2 sen (-8.2%) while the upside to the LT target of RM0.30 is 5.5 sen (+22.4%).

Source: Hong Leong Investment Bank Research - 31 Mar 2016