• In the news. According to the Weekly Edge, GBGAQRS is in a good position to secure future jobs, leveraging its tie-ups with Suria Capital (Sabah’s GLC-linked) and Tanah Makmur (major shareholders is Pahang’s Crown Price Tengku Abdullah). Through these partnership, GBGQAQRS has managed to secure projects such as the development of RM849m One Jeselton Waterfront (KK) and RM300m Pahang’s new s tate adminis trative Centre in Kuantan. As at end Dec 15, its construction orderbook was ~RM2bn.

• Technically speaking. We see positive risk to reward ratio with 17.9% upside against 6.7% downside. Following its recent strong rebound from YTD low of RM0.78 (21 Jan), the stock is ripe again to launch another wave of uptrend to stage a breakout above the LT downtrend line of RM1.00 soon, supported by uptick in hourly oscillators and trading above all key multiple daily SMAs . A decisive breakout above RM1.00 could take the next leg up towards RM1.04 (38.2% FR) and our LT objective at RM1.12 (50% FR). On the flip side, key supports are RM0.91 (10-d SMA) and RM0.90. Cut loss at RM0.89

Source: Hong Leong Investment Bank Research - 30 May 2016