Media Prima Bhd (Trading Buy)

• Media Prima Bhd is an integrated media company, primarily engaged in the commercial television & radio broadcasting, publishing, digital media, home-shopping, and other media related services.

• In the latest financial quarter, the group saw 3QFY20 revenue rebounded by 14% QoQ as advertising activities gained momentum from the easing of movement restrictions. Consequently, bottom-line swung back to a net profit of RM12.4m (from 2QFY20’s -RM20.1m).

• Moving forward, the upcoming quarter remains uncertain given the worsening Covid-19 situation locally. That being said, in the longer-term, the group could be poised to benefit from (i) growing demand for digital advertising under Omnia, as well as (ii) sanguine outlook on the group’s home shopping business – WOWSHOP given the potential shift in consumer shopping preference amid the pandemic.

• The stock has been on an uptrend since November this year, which sees it trending steadily above all of its key SMAs

• Given the bullish MACD crossover, we believe the stock could be poised for more upside.

• We expect the stock to continue trending upwards to test its resistances at RM0.300 (R1, +20% upside potential) and RM0.365 (R2, +46% upside potential).

• Meanwhile, our stop loss is set at RM0.200 (-20%, downside risk).

Econpile Holdings Bhd (Trading Buy)

• Econpile Holdings Bhd is predominantly involved the provision of construction & piling solutions, as well as building foundation works.

• QoQ, the group saw encouraging financial improvements in tandem with the relaxation of the movement restrictions in 1QFY21. Notably, its revenue more than tripled to RM102.0m and bottom-line returned to black at net profit of RM5.6m (from Q4’s net loss of RM1.2m).

• Here forth, the group should benefit from the recovery in job flows as majority of the mega infrastructure remains on the table as outlined on Budget 2021.

• Technically speaking, the group has been on an uptrend in an ascending channel after bottoming out from the sell down in September. Coupled with the formation of a Golden Cross, we believe the bullish momentum may persist.

• We expect the stock to test its overhead resistance at RM0.630 (R1: 11% upside potential) and RM0.710 (R2: +25%, upside potential)

• Meanwhile, our stop loss is pegged at RM0.510 (-11%, downside risk)

Source: Kenanga Research - 10 Dec 2020