Kenanga Research & Investment

Daily technical highlights – (CENGILD, JIANKUN)

Publish date: Fri, 27 Jan 2023, 09:55 AM

Cengild Medical Bhd (Technical Buy)

• Following a retracement of 31% from a high of RM0.58 in mid-September 2022 to as low as RM0.40 on 11 October 2022,CENGILD’s share price has subsequently shifted its direction to an uptrend by forming a series of higher highs and higherlows along the way before closing at RM0.485 yesterday.

• Chart-wise, the stock is set to bounce off from the bottom range of the ascending channel in view of the following positivetechnical signals: (i) the stochastic indicator has started to climb out from the oversold zone, (ii) the MACD is on the verge ofcrossing above the signal line, and (iii) the stock price has cut above the 21-day EMA.

• Ergo, the stock is poised to challenge our resistance thresholds of RM0.545 (R1; 12% upside potential) and RM0.58 (R2;20% upside potential).

• Our stop loss is set at RM0.43, which translates to a downside risk of 11%.

• Listed on 18 April last year, CENGILD is a healthcare service provider operating a medical centre that specialises in thediagnosis and treatment of gastrointestinal, liver diseases and obesity.

• Earnings-wise, the group reported a net profit of RM3.6m (+157% YoY) in 1QFY23 after logging a full-year net earnings ofRM9.4m in FY June 2022.

• From a valuation standpoint, the stock is currently trading at a Price/Book Value multiple of 4.4x based on its book value pershare of RM0.11 as of end-September 2022.

Jiankun International Bhd (Technical Buy)

• JIANKUN’s share price might have bounced off an intermediate support line after plunging 39% from the peak of RM0.33 on13 December 2022 to the trough of RM0.20 last week as it recovered subsequently to close at RM0.215 yesterday.

• On the chart, the stock price is expected to maintain its upward momentum on the back of the strengthening buying interestas the RSI indicator is rising while the MACD is on the verge of crossing above the signal line amid an emerging ParabolicSAR uptrend.

• With that said, the stock could advance towards our resistance targets of RM0.24 (R1; 12% upside potential) and RM0.26(R2; 21% upside potential).

• We have pegged our stop loss at RM0.19, representing a downside risk of 12%.

• A property group which is involved in property development & construction, project management & advisory and theprovision of property management services – JIANKUN reported a net loss of RM2.2m in 3QFY22 (from a net profit ofRM1.1m in 3QFY21), resulting in a cumulative net loss of RM5.5m in 9MFY22 (compared with a net profit of RM2.2m in9MFY21).

• Valuation-wise, based on its book value per share of RM0.36 as of end-September 2022, the stock is currently trading at aPrice/Book Value multiple of 0.6x.

Source: Kenanga Research - 27 Jan 2023

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