P.A. Resources Bhd

• Buying interests of PA has returned after it broke out of its 2-month cup and handle pattern with four consecutive white candles. In view of PA now at a new 52-week high coupled with its EMAs pulling further away, this suggest that its bullish momentum is picking up further.

• We expect the rising momentum is set to steer the stock higher and test the next resistance of RM0.355 (R1) followed by RM0.37 (R2) in the near term.

• On the downside, stop-loss is set at RM0.30, below 19 Jan’s low.

• Fundamentally, PA has secured its fourth contract extension from its largest customer, First Solar worth RM1.08bn, doubling the value of its previous extension on 18 Jan 2024. Coupled with its recentcompleted a 35% expansion of its extrusion capacity, PA is well-positioned to accelerate its earnings growth moving forward.

Source: Rakuten Research - 14 Feb 2024

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