QES Group Bhd (Trading Buy)
• QES manufactures and distributes automated test equipment used in semiconductor manufacturing.
• They have a wide range of product line covering wafer inspection, post-wafer probing, post-dicing, wafer sorting and handling, as well as wafer packing and unpacking.
• In their recent 1QFY21 earnings, QES reported a record PAT of RM6.9m (since listing in 2017) supported by stronger margins and volume growth.
• From a technical standpoint, QES is on a strong uptrend and yesterday’s retracement to the 20EMA line serves as a good level to accumulate in anticipation for a rebound.
• We think a rebound to its immediate resistance of RM0.90 (R1; 8% upside) is plausible with further potential to retest its peak of RM0.975 (R2; 17% upside)
• Our stop loss price is set at RM0.78 (or 6.5% downside); slightly below support of RM0.80.
Frontken Corporation Berhad (Trading Buy)
• FRONTKN provides precision cleaning services for semiconductor equipment. Their key clients are front end wafer manufacturers like TSMC – the biggest and most advanced foundry company presently.
• Given the tight supply of semiconductor chips currently faced, FRONTKN is likely to benefit from the capacity expansion of foundries in the near future.
• Fundamentally, earnings have been growing consequently year after year since 2015 at an astounding CAGR of 175%. Consensus is expecting FY21E and FY22E earnings to continue growing at 32% and 22% respectively.
• Technically speaking, since coming off its peak in early April, FRONTKN has rebounded off its 200SMA and is current consolidating and forming higher lows – indicating strength.
• Current share price is also hovering slightly above 2 key support levels ie 20EMA and 50MA; providing accumulation opportunity while limiting downside risk.
• Our first target is the resistance at RM3.35 (R1; 12% upside) while second target is pegged to previous peak of RM3.60 (R2; 20%). Stop loss is set at RM2.75 (or 8% downside).
Source: Kenanga Research - 9 Jul 2021
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Created by kiasutrader | Aug 26, 2024
Created by kiasutrader | Aug 26, 2024
Bgt 9963
Post removed.Why?
2021-07-10 08:55