Samchem Holdings Bhd (Technical Buy)

• After sliding from a recent high of RM0.745 in end-January 2023 to RM0.685 currently – and approaching the previous troughof RM0.645 in late November 2022 that was followed by an ensuing rebound – SAMCHEM shares might be bottoming soon.

• An upward shift in the share price could be forthcoming following the appearance of a bullish dragonfly doji candlestick andthe emergence of the positive stochastic signal (as triggered by the %K line’s crossover above the %D line in the oversoldzone).

• On the way up, the stock is expected to advance towards our resistance targets of RM0.75 (R1; 9% upside potential) andRM0.80 (R2; 17% upside potential).

• Our stop loss price level is set at RM0.62 (representing a downside risk of 9% from its last traded price of RM0.685).

• Business-wise, SAMCHEM is a leading regional industrial chemicals and lubricants distributor, supplying approximately 500different petrochemicals and services to more than 7,000 clients from industries such as automotive, paints & inks, oil & gasand agriculture across the region (mainly in Malaysia, Indonesia, Vietnam and Singapore).

• The group reported net profit of RM6.5m in 3QFY22 (compare with 3QFY21’s net profit of RM12.6m), bringing 9MFY22bottomline to RM44.3m (versus net profit of RM50.8m in the previous corresponding period).

• Based on its book value per share of RM0.51 as of end-September 2022, the stock is presently trading at Price / Book Valuemultiple of 1.34x (which is at 1SD below its historical mean).

Symphony Life Bhd (Technical Buy)

• From a peak of RM0.89 in the beginning of April 2021, the plotting of lower highs and lower lows since then has ledSYMLIFE’s share price to tumble to a 31-month low of RM0.38 in late September last year before moving slightly higher toclose at RM0.41 yesterday.

• Yet, a price rebound may be in the making following the emergence of positive technical signals arising from: (i) the bullishstochastic crossover in an oversold area, (ii) the golden cross by the 50-day SMA above the 100-day SMA, and (iii) thesighting of several dragonfly doji candlesticks.

• In which case, the stock could climb towards our resistance thresholds of RM0.46 (R1; 12% upside potential) and RM.50 (R2;22% upside potential) ahead.

• We have pegged our stop loss price level at RM0.37 (translating to a downside risk of 10%).

• SYMLIFE – which is principally involved in the business of property development, property investment and construction &quarry operations – made net loss of RM5.7m in 2QFY23 (which is narrower than 2QFY22’s net loss of RM9.8m), taking1HFY23 net loss to RM10.1m (down from 1HFY22’s net loss of RM23.4m).

• In terms of Price / Book Value rating, the stock is currently trading at a multiple of 0.27x (or around the minus 1.5SD levelfrom its historical mean) based on its book value per share of RM1.51 as of end-September 2022.

Source: Kenanga Research - 15 Feb 2023