Samaiden Group Bhd

• SAMAIDEN may trend higher after breaking out from its one-month ascending triangle pattern, surpassing the RM1.22 resistance with a long white candle yesterday. In view of the stock posting a white marubozu candlestick, coupled with an uptick in its 20-day EMA, this suggests that its bullish momentum is picking up further.

• We opine the rising momentum has a decent chance to kick start a new upcycle and lift the stock towards the subsequent level of resistance of RM1.30 (R1), followed by RM1.35 (R2).

• On the downside, stop-loss is set at RM1.09, below the 20-days EMAs.

• Fundamentally, we believe the recent government announcement regarding the implementation of quotas for 2.8GW of new renewable energy (RE) capacities will positively impact solar EPCC (Engineering, Procurement, Construction, and Commissioning) players such as SAMAIDEN by fostering new streams of contracts. Additionally, yesterday’s announcement regarding SAMAIDEN’s approval to build and operate 7MW biomass power plant in Tangkak, Johor, with a net export capacity of 6MW to TNB, signifies a significant development in the company's growth trajectory.

Source: Rakuten Research - 31 Jan 2024

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