Malaysian Bulk Carriers; Buy; RM1.80
Price Target: RM2.10; MBC MK
Set to sail

Maybulk offers an interesting trading proposition for investors to ride on an earnings rebound-cum-value unlocking play. The Group may benefit from an anticipated upturn in bulk shipping charter rates as it seeks to unlock value by spinning off its 21%-owned PACC Offshore Services Holdings on the Singapore stock exchange. Our fundamental rating for the stock is Buy with a target price of RM2.10.

Technically speaking, Maybulk could be on its way to advance further after bouncing up from a doublebottom pattern. Riding on the recovery momentum, the share price is set to plot higher highs and higher lows possibly within an upward sloping channel going forward. We have set resistance targets at RM2.10 (first) and RM2.65 (second), translating to potential upsides of 17% and 47%, respectively. Trading Buy.

Source: HwangDBS Research - 25 Jul 2013