Agmo Holdings Bhd (Technical Buy)

• After gapping down from the prior day’s closing of RM0.555 to as low as RM0.485 on 25 May, AGMO’s share price mighthave bounced off from an intermediate support level to close at RM0.515 yesterday.

• An extension of the upward bias is anticipated in view of the positive technical signals triggered by the stochastic indicator’sreversal from the oversold territory as the share price has just crossed back above the lower Bollinger Bands.

• Ergo, the stock will likely challenge our resistance targets of RM0.57 (R1; 11% upside potential) and RM0.64 (R2; 24%upside potential).

• Our stop loss price level is pegged at RM0.46 (representing an 11% downside risk).

• A digital solutions and application development specialist focusing on the development of mobile and web applications aswell as the provision of digital platform-based services, AGMO reported a net profit of RM0.6m in 4QFY23 (compared toRM2.2m in 3QFY23) and brought its full-year earnings to RM7.1m (there was no YoY comparison as the Company was onlylisted in August last year at an IPO offer price of RM0.26 per share).

• Valuation-wise, the stock is currently trading at a Price/Book Value multiple of 4.1x based on its book value per share ofRM0.12 as of end-March 2023.

Astro Malaysia Holdings Bhd (Technical Buy)

• Following a retracement of 17% from RM0.715 in mid-April 2023 to as low as RM0.595 on 23 May, a price reversal is spottedafter ASTRO shares broke out from a downtrend resistance line to end at RM0.67 yesterday.

• From a technical standpoint, the stock could climb higher on the back of the following bullish signals: (i) the emergingParabolic SAR uptrend, (ii) the DMI Plus has just crossed above the DMI Minus, and (iii) the appearance of a golden cross inMACD.

• Hence, we anticipate the stock could climb towards our resistance thresholds of RM0.75 (R1; 12% upside potential) andRM0.82 (R2; 22% upside potential).

• Conversely, we have placed our stop loss level at RM0.59 (representing a 12% downside risk).

• A leading content and entertainment group across the TV, radio, digital and commerce platforms, ASTRO reported a net profitof RM54.8m in 4QFY23 (compared to RM5.8m in 3QFY23), lifting its full-year bottomline to RM259m (-44% YoY).

• Consensus is projecting the group would deliver a net profit of RM388.7m in FY Jan 2024 and RM360.5m in FY Jan 2025,translating to forward PERs of 9.0x and 9.7x, respectively.

• Furthermore, the stock offers an attractive forward dividend yield of 7.9% based on consensus DPS estimate of 5.3 sen forFY Jan 2024.

Source: Kenanga Research - 1 Jun 2023