• Company profile. Prestariang Berhad (Presbhd) is engaged in 1) ICT Training and Certification, 2) Software Licensing and Distribution and 3) Education. In 2016, Presbhd managed to secure a national mega project - Sistem Kawalan Imigresen Nasional (SKIN), which is related to the immigration and border security for the country. Also, they have unveiled a cloud-based educational platform, EduCloud to provide a revolutionize experience of the higher education on a regional level.

• SKIN could be significant to turnaround Presbhd . In 3QFY17, Presbhd registered revenue of RM48.5m (+171% yoy) on the back of higher recognition from the SKIN project. This is the first financial contribution of the project since the Group was being awarded the 15-year concession by the Ministry of Home Affairs. Meanwhile, 9MFY17 PAT stood at RM16.2m (+117% yoy), mainly due to the recognition of SKIN project and higher contribution from Software and Education segments. Hence, we believe that the turnaround is positive for Presbhd under the SKIN project and various transformation efforts by the Group.

• Technical outlook. On the weekly chart, PRESBHD could be showing a trend changing signal after it has formed a hammer candle in November after recovering from the support of RM1.18. Meanwhile, on the daily chart, technical indicators are on a recovery trend with the MACD Line approaching zero. Should there be a breakout above RM1.52, the next resistance will be envisaged around RM1.61, RM1.71, followed by a LT target of RM1.83. Support will be located around RM1.41-1.45. Cut loss level will be set at RM1.40.

Source: Hong Leong Investment Bank Research - 20 Dec 2017