• A palm oil and healthcare play. Currently, TDM has a total of 45,197 hectares of planted oil palm land for its plantations in Terengganu, Malaysia and Kalimantan Barat, Indonesia. The group also operates four private hospitals with a total of 294 beds in Klang Valley (Kelana Jaya and Taman Desa Medical Centres), Terengganu (Kuala Terengganu Specialist) and Pahang (Kuantan Medical Specialist). In FY15, its plantation divisions contributed 84% to PBT while the rest was contributed by its healthcare unit.

• Consensus is anticipating a strong 39% profi t CAGR from 2015- 2018, banking on the stronger CPO prices and FFB production growth coupled with the growing demand for private healthcare in Malaysia, through its capacity expansion and via introduction of new modalities.

• Positive breakout. Following a decisive downtrend line breakout on 5 Aug, backed by rising volume and uptick in technical indicators, we believe TDM is ripe again to advance further towards RM0.715 (38.2% FR) and RM0.735 (50% FR) levels, before reaching our LT objective at RM0.785. Key supports are RM0.675 (daily lower Bollinger band) and RM0.67 (4 Aug low). Cut loss at RM0.655.

Source: Hong Leong Investment Bank Research - 9 Aug 2016