Ancom Nylex Bhd (Technical Buy)

• Following its retracement from a high of RM1.09 in early August 2022, a recent rebound from a trough of RM0.92 has paved the way for ANCOMNY’s share price to plot a reversal ahead.

• With the MACD line cutting above the signal line and the DMI Plus crossing over the DMI Minus, we believe the stock will likely strengthen further to challenge our resistance levels of RM1.06 (R1; 10% upside potential) and RM1.17 (R2; 22% upside potential).

• On the downside, our stop loss has been set at RM0.87, which translates to a downside risk of 9%.

• ANCOMNY manufactures and sells agricultural and industrial chemical products to both the overseas and local markets. Its two other business segments are logistics and polymer divisions. This follows the completion of its acquisition of all the assets and liabilities of Nylex for RM179.3m on 26 January 2022.

• Earnings-wise, the group’s net profit doubled to RM31.9m (+111% QoQ) in 4QFY22, taking the full-year FY May 22 bottomline to RM68.2m (+187% YoY).

VisDynamics Holdings Bhd (Technical Buy)

• VIS’ share price pulled back from its resistance barrier of RM0.76 in July 2022 before bouncing up with the formation of several bullish candlesticks in recent days to close at RM0.775 yesterday, attempting to break away from its previous resistance level.

• We expect the upward momentum to continue based on the positive technical signals triggered by: (i) the DMI Plus crossing above the DMI Minus, and (ii) the bullish MACD signal.

• The stock could then rise to challenge our resistance levels of RM0.85 (R1; 10% upside potential) and RM0.925 (R2; 19% upside potential).

• We have pegged our stop loss at RM0.70, representing a downside risk of 10%.

• VIS is engaged in the design, research & development and assembly of back-end semiconductor equipment.

• Earnings-wise, the group reported net profit of RM3.1m (+11% QoQ) in 2QFY22, which brought 1HFY22 net profit to RM5.9m (+59% YoY).

Source: Kenanga Research - 26 Aug 2022