Annum Berhad is principally involved in the manufacturing and distribution of plywood and polyester wood. Dated 9 Feb 2021, the company had established a new fully owned subsidiary, Annum Builder Sdn Bhd (ABSB) to venture into construction works.

• Attractive turnaround story. Annum Berhad had turnaround their loss making via several non-profitable asset disposal activity and resulted in the streamline in activities, coupled with strong financial performance in the recent quarter.
   
• Lower risks. As compared to earlier this year, Annum Berhad’s share price had retraced from the height of RM3.450 to the current level of RM1.120. We noted there were no changes in fundamental despite the decline in share price.
   
• Consolidation phase. The decline in share price had resulted in a consolidation exercise of the share price as well as trading volume for the company. The trading volume had shrunk to be only left with 5.31% of January – February trading activity.
   
• MACD line consolidation. The upcoming direction of the price movement will ultimately determine the next cycle of trading momentum of the company. So far, MACD has been favoring the bull side.
   
• Attractive risk-to-reward. We observed that Annum Berhad immediate resistant would be RM1.200 and straight up to RM1.520 on the second level. Using RM1.100 as the key support level, a very attractive yield could be derived from the trading of Annum Berhad.