Bumi Armada Bhd (Trading Buy)
• Business-wise, ARMADA is an international offshore energy facilities and services provider which owns and operates offshore vessels to support oil & gas exploration and production activities.
• For the latest quarter of 3QFY21, amid disruptions in vessel availability, ARMADA reported a revenue of RM545.7m (-3.3% YoY) while net profit increased to RM153.4m (+79.2% YoY). This brought 9MFY21’s net earnings to RM456.0m (versus 9MFY20’s net loss of RM18.5m).
• As Brent crude oil prices are currently hovering around USD89 per barrel, consensus is expecting ARMADA to post a net profit of RM633.7m this year and RM603.4m next year, which translate to forward PERs of 5.1x and 5.4x, respectively.
• Chart-wise, the stock plunged to a low of RM0.145 (in mid-Dec 2018), registering a decline of 81% from its peak of RM0.75 (in end-July 2018). Subsequently, the stock recouped its losses partially and tried to challenge the RM0.55-RM0.56 range from mid-November 2019 to beginning-January 2020. The failure to break above this range then led the stock to retrace to RM0.11 (in mid-March 2020).
• Following that, the stock then plotted higher lows to form an ascending triangle pattern before closing at RM0.55 on Monday.
• On the back of the crossover by the shorter-term MA above the longer-term MA and coupled with the Parabolic SAR indicator trending upwards, ARMADA’s stock price will probably continue to rise by breaking out from the ascending triangle formation.
• As such, the stock could climb to challenge our resistance thresholds of RM0.605 (R1; 10% upside potential) and RM0.64 (R2; 16% upside potential).
• We have pegged our stop loss price at RM0.50 (or a 9% downside risk).
Wah Seong Corporation Bhd (Trading Buy)
• From a technical perspective, WASEONG’s share price is currently riding an uptrend after cutting above the 200-day MA recently. The rising momentum is also supported by an upward trend by the Parabolic SAR indicator.
• Therefore, we anticipate the stock could extend its uptrend and test our resistance levels of RM0.79 (R1; 12% upside potential) and RM0.825 (R2: 17% upside potential).
• We have pegged our stop loss at RM0.63 (representing a downside risk of 11% from Monday’s close of RM0.705).
• WASEONG – whose core business encompasses 2 main divisions, namely Oil and Gas Division and Industrial Services Division - offers a wide spectrum of services such as pipe-coating, manufacturing of spiral welded steel pipes, metal roofing services etc.
• The group reported a narrower net loss of RM5.9m in 3QFY21, lifted by lower operating expenses and the absence of an one-off adjustment compared to a loss of RM255.8m in 3QFY20. This brought its 9MFY21’s cumulative net profit to RM4.7m (versus a net loss of RM329.8m in the preceding period).
• Consensus is currently projecting WASEONG to register a net loss of RM6.6m in FY Dec 2021 before returning to profitability in FY Dec 2022 with a net profit of RM47.9m.
Source: Kenanga Research - 3 Feb 2022
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2024-08-26
ARMADA2024-08-26
ARMADA2024-08-23
ARMADA2024-08-23
ARMADA2024-08-23
ARMADA2024-08-23
ARMADA2024-08-23
ARMADA2024-08-23
WASCO2024-08-23
WASCO2024-08-22
ARMADA2024-08-20
WASCO2024-08-20
WASCO2024-08-19
ARMADA2024-08-19
ARMADA2024-08-16
ARMADA2024-08-16
ARMADA2024-08-16
WASCO2024-08-16
WASCO2024-08-16
WASCOCreated by kiasutrader | Aug 26, 2024
Created by kiasutrader | Aug 26, 2024