• Awaiting further rerating catalysts from SKIN, ESBLA and PP2.0. After hitting YTD low of RM1.69 (12 Jul), PRESBHD share prices rebounded 28% to end at RM2.17 yesterday. Share prices are expected to continue its momentum and poised to break the medium term downtrend resistance channel near RM2.21 in anticipation of further announcements (likely in 4Q16) from key medium to long term growth drivers such as the Sistem Kawalan & Imigresen Nasional (SKIN), ii) Polytechnic Premier 2.0 and iii) Enhancement School Based Learning Assessment (ESBLA) projects.

• Impending downtrend line breakout. A decisive breakout above RM2.21 is likely to spur prices higher to retest short term resistances near RM2.29 (100-w SMA) and RM2.36 (50% FR) before achieving our LT objective at RM2.51 (61.8% FR). Key supports are RM2.11 (30-d SMA) and RM2.02 (50-d SMA). Cut loss at RM1.99.

Source: Hong Leong Investment Bank Research - 8 Sep 2016