Hibiscus Petroleum Bhd (Technical Buy)

• HIBISCS’s share price has fallen 39% from a peak of RM1.47 in May last year to close at RM0.90 on Friday. Nearing its keysupport level of RM0.80, a technical rebound could be anticipated.

• We believe the share price will shift upward as: (i) both Stochastic and RSI indicators are strengthening, and (ii) the shareprice is currently hovering at the lower end of the Bollinger Band.

• Hence, the stock is poised to challenge our resistance thresholds of RM1.00 (R1; 11% upside potential) and RM1.08 (R2;20% upside potential).

• Conversely, our stop-loss price has been identified at RM0.80 (representing 11% downside risk).

• An independent oil and gas exploration and production company with a diversified portfolio of assets and concessionslocated across Malaysia, the United Kingdom, Australia and Vietnam, HIBISCS is a direct proxy to oil price movements.

• Earnings-wise, the group reported a net profit of RM71.5m in 3QFY23 compared with a net profit of RM307.5m in 3QFY22.This took 9MFY23 net profit to RM277.2m (versus net profit of RM397.6m previously).

• Based on consensus forecasts, HIBISCS’s net earnings are projected to come in at RM420m in FY June 2023 andRM427.2m in FY June 2024, which translate to forward PERs of 4.3x this year and 4.2x next year.

Samaiden Group Bhd (Technical Buy)

• SAMAIDEN’s share price has been moving sideways after hitting a high of RM1.03 in early April this year to close at RM0.91on Friday. With the recent lifting of a ban on RE export, a continuous upward trajectory is expected.

• On the chart, the share price is expected to continue its upward momentum backed by: (i) the strengthening RSI indicator, (ii)the rising Parabolic SAR trend, and (iii) the 12-day moving average still hovering above the 26-day moving average followingthe recent MACD golden cross.

• An upward shift could then propel the stock towards our resistance targets of RM1.00 (R1; 10% upside potential) andRM1.08 (R2; 19% upside potential).

• Our stop-loss level is pegged at RM0.83 (representing 9% downside risk).

• Fundamentally-speaking, SAMAIDEN is principally involved in the engineering, procurement, construction & commissioning(EPCC) of solar photovoltaic (PV) systems and power plants. Its other business activities include the provision of renewableenergy and environmental consulting services, as well as operation and maintenance (O&M) services.

• Earnings-wise, the group reported a net profit of RM1.9m in 3QFY23 compared with a net profit of RM4.2m in 3QFY22. Thistook 9MFY23 bottomline to RM6.9m (versus net profit of RM8.5m previously).

• Based on consensus forecasts, SAMAIDEN’s net earnings are projected to come in at RM11.6m in FY June 2023 andRM20.1m in FY June 2024, which translate to forward PERs of 30.4x and 17.5x, respectively

Source: Kenanga Research - 19 Jun 2023