BJAUTO (TB, TP: RM4.20) recently reported a strong full-year earnings result, which led to the rebound in its share price from the RM3.49 (S1) level. Furthermore, (due to its sustainable margins on the back of lower import duties from FTA with Japan and being a beneficiary of the weaker Yen), the share price has broken out from its ‘Double-Bottom’ neckline to gap up above its mean-Bollinger band, confirming the bullish uptrend. The MACD has also staged a positive crossover to further support the bullish outlook ahead. Besides, both Stochastic and RSI indicator are also trending up strongly, suggesting buying momentum is building up. With that, we are placing a Trading Buy on the stock with the expectations that the share price could rally towards its previous high of RM4.20 in the near-term.

Source: Kenanga Research - 16 Jun 2015