Dow Jones: 25,890.18 pts (-396.85pts, -1.51%)
⬆ Resistance:  26900
⬇ Support:  25200

FBM KLCI: 1,566.72 pts (-10.18pts, -0.65%)
⬆ Resistance:  1620
⬇ Support:  1470

Crude Palm Oil: RM2,359 (-RM32, -1.34%)
⬆ Resistance:  2470
⬇ Support:  2270

Brent Oil: $43.08 (-$0.02, -0.05%)
⬆ Resistance:  44.6
⬇ Support:  40.3

Gold: $1,794.86 (+$10.18, +0.57%)
⬆ Resistance:  1840
⬇ Support:  1730

M+ Online Technical Focus - 8 Jul 20
Advancecon Holdings Bhd: Strengthening recurring income

Trading Catalyst
• Renewable energy diversification equipped Advancecon with a total of 3 major solar projects with combined 3,710.5kWp solar photovoltaic system that will provide long term recurring income to sustain earnings visibility over the years.
• Outstanding construction orderbook of RM704.5m will provide earnings visibility to the construction segment over the next 18 months.
• At current price of RM0.40, Advancecon is trading at TTM PE of 14.6x, which is below 2Y historical PE average of 16.8x.
• Technically, share price has breakout above the RM0.395 resistance, targeting RM0.435-RM0.455 with long term target at RM0.475.

Technical View

(i) ADVCON (S: RM0.36, R: RM0.435-0.455, LT TP:RM0.475, CL:RM0.355)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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