Ho Wah Genting Bhd (9601)

• HWGB closed 13.5% or 8 sen higher to RM0.675 yesterday.

• Share price remains on bullish uptrend supported by positive signals from key technical indicators. Recent diversification into healthcare segment with a suite of products; Covid-19 test kits, health supplements, nano disinfectant is likely to see it turn profitable.

• This will see renewed buying interest on its strategic transformation thus we expect share price to break new high possibly heading towards RM0.90 level.

• Resistance levels are identified at RM0.690 (R1) and RM0.750 (R2).

• Conversely, support levels are seen at RM0.540 (S1) and RM0.450 (S2).

Source: Rakuten Research - 28 Jul 2020