*03-Sep-19*
*Technical Tracker - HLIB Retail Research*
*Trading Buy: OKA-7140*
*Better times ahead*
*(Last price: RM0.600, Potential upside +23.3%)*

*Company Profile*
• OKA (listed in June 2002) is the one of the leading integrated manufacturer of precast concrete products in Malaysia

*Trading Catalyst*
• As OKA is one of the largest local ready-mixed and precast concrete manufacturers and its products are widely used in the infrastructure, sewerage, construction and highways, sentiment on the stock could further improved in anticipation of the revival of mega infrastructure projects and government’s commitment in building more affordable homes.
• Valuations are cheap at 11.7x (53% below peers) and 0.83x BVPS (43% below peers), underpinned by attractive 6.2% DY (based on average 3.7sen in the last 3 years) and 1Q20 net cash/share of RM0.192 (Ex-cash P/E is only 7.9x).
• Technically, the stock is poised for a potential downtrend reversal towards RM0.63-0.74 levels in the mid to long term following the formation of Dragon Fly Doji and Hammer candlesticks.

*Technical View*
• Resistance: RM0.630 / RM0.670 / RM0.740
• Support: RM0.585 / RM0.555
• Cut loss: RM0.550

*Key Financial Stats*
• Trading at 11.7x trailing P/E (-53% below peers) and 0.83x P/B (-43% below peers), backed by 6% DY and 19.2sen net cash.

*Source*: Bloomberg, HLIB
*DISCLAIMER:* https://www.hlebroking.com/v3/disclaimer.aspx