Greatech Technology Bhd (Trading Buy)

• After hitting a 1.5 year low of RM2.90 on 8th March 2022, Greatech has rebounded strongly by 63% to RM4.82 since then.
   
• Nonetheless, we believe there is still upside to be captured with chart currently consolidating and forming a bullish pennantjust above the 50MA.
   
• With that, we project the stock to rise further to next resistance level of RM5.30 (R1; 10% upside potential) and couldpotentially challenge next immediate high of RM5.60 (R2; 16% upside potential).
   
• Our stop loss is pegged at RM4.46 (downside risk of 7.5%), just below the 50MA.
   
• Greatech fabricates equipment for clients within the Electric Vehicle, Renewable Energy and Medical space. Consensus areforecasting earnings to grow at a CAGR of 29% for the next 2 years backed by its robust orderbook of RM547m (as of Dec-21) and commencement of new Batu Kawan plant (900k sf) in April-22.

Capital A Bhd (Trading Buy)

• Capital A Bhd (previously known as AirAsia Bhd) has broken out from key resistance of RM0.70 after consolidating in a flatchannel for 2 months (since early-Feb).
   
• We believe the momentum and high volumes which prompt the break out yesterday is built behind the anticipated opening ofMalaysian borders on April 1st 2022 which would consequently benefit players within the aviation industry.
   
• Thus, on the back of this strong momentum, we anticipate the stock to rise further and challenge the next resistance levels ofRM0.815 (R1; 9% upside potential) and RM0.845 (R2; 13% upside potential).
   
• On the downside, our stop loss price has been set at RM0.685, which translates to a downside risk of 9%.

Source: Kenanga Research - 31 Mar 2022