Cloudpoint Technology Bhd (CLOUDPT, 0277)

• Share price has surged 63% since our last technical buy call on 23rd Feb 2024.

• CLOUDPT is back in the radar after it broke out from a three-week bullish flag with a long whitecandle yesterday. In view of the stock bouncing off the 20-day EMA coupled with the supportive technical reading in RSI, this has enhanced the upward momentum.

• We expect the rising momentum to steer the stock higher and test the next level of resistance ofRM1.03 (R1) and RM1.15 (R2) in the near term.

• On the downside, stop-loss is set at RM0.85.

• Fundamentally, CLOUDPT is set to benefit from the ongoing AI boom, increased cloud adoption, anda thriving digital revolution. With strong cybersecurity prospects and expansion into digital applications, CLOUDPT’s revenue is expected to increase substantially. As of the end of the Q1FY24, CLOUDPT boasts an order book of RM60m, with 93% expected to be recognized in FY24. Adding this to the 1Q24 revenue of RM34.7m would equate 82% of revenue generated in FY23. Meanwhile, CLOUDPT has a strong tender book of RM100m, with a high likelihood of winning these bids.

Source: Rakuten Research - 24 Jul 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo