Evergrn: Earning continued to rise

http://nexttrade.blogspot.my/2015/11/evergrn-earning-continued-to-rise.html

Support Line

BINTAI Kinden Corp rebounded to a high of 35.5 sen during intra-day session, the best since August, amid renewed bargain hunting interest. Going forward, prices are likely to extend gains, with the stochastic and the 14-day relative strength index rising, and the moving average convergence/divergence histogram improving. Initial resistance is envisaged at the 40 sen-45 sen band, followed by the 50 sen mark. A major breakout of the 57 sen barrier would see the fate of this counter turning brighter. The immediate support is pegged at the 200-day simple moving average of 28 sen.

MENANG Corp shares hit a three-month high of 74.5 sen on follow-through buying momentum. Based on the daily chart, prices had penetrated the mid-term descending line in the previous session, implying that this recent correction phase has ended and the bulls are now ready to charge. A clear penetration of the 75.5 sen heavy barrier would add to optimism, enroute to the 93 sen-95 sen range. The next objective would be to challenge the previous massive rally peak of RM1.33, set on July 3, last year. Current support is resting at the 70 sen floor, followed closely by the 67 sen level.

MUDA Holdings rose to a seven-month high of RM1.90 amid continuous bargain hunting nibbling. Technically, the short-term indicators are painting a pretty encouraging signal, suggesting prices are poised to firm in the short-term. But they are expected to face significant resistance at the RM1.95 level, of which a decisive breakout would pave the way for the bulls to re-test the historical peak of RM2.48, set on Jan 6, 1994 or to explore the uncharted territory in the near-term. Initial support is seen at RM1.74 and solid floor is set at the 14-day simple moving average of RM1.57.

The comments above do not represent a recommendation to buy or sell.

- The Star Biz

TP RM3.08 by CIMB

Evergreen TP RM3.08 by CIMB

BURSA: Range-Bound Play Expected For Bursa
By Azizul Ahmad

KUALA LUMPUR -- Speculation over the US Federal Reserve’s rate hike, President Obama’s trip to Malaysia and Chinese New Year smallcap play are expected to dominate sentiment on Bursa Malaysia next week and lead to range bound play, says an analyst.

Affin Hwang Investment Bank Vice-President/ Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the local market is expected to trend sideways following an anticipated rate hike at the Federal Open Market Committee meeting on Dec 15-16. Nazri said sentiment should be well supported by the European Central Bank’s further policy easing, year-end small-cap play and the second landmark trip of US President Obama to formalise Malaysia-US economic collaboration.

“Overall, with investors banking on the launch of the Trans-Pacific Partnership Agreement (TPPA) and the return of small-cap risk appetite as well as hoping for a crude oil price recovery, the FBMKLCI could possibly trade sideways in the 1660-1680 band before looking to retest its psychological level of 1,700 in the near term,” he told Bernama.

Local sentiment should get a boost from the second historic visit by Obama which will focus on economic talks with the prime minister, said Nazri. “We expect stocks linked to the TPPA and ASEAN Economic Community to be in focus as President Obama forges deeper ties with the region,” he said.

Sector-wise, he said the bank foresees ample play on FBM Ace and FBM Fledgling with the approaching Chinese New Year rotation play such as Instaco, XOX, Rexit, SGB and Esceram.

“Strategy-wise, aggressive investors should go long on index futures while conservative traders should accumulate our Top 15 stocks in 2016 namely MYEG, Kossan, Harta, Top Glove, Evergreen, Petronas Dagangan, IHH, CMSB, Gtronic, Inari, QL, KPJ, Timecom, Hapseng and Westports,” he added.

Weekly turnover expanded to 12.94 billion units valued at RM9.85 billion from 8.79 billion units valued at RM7.99 billion last week. Main market volume rose to 7.42 billion units worth RM8.66 billion versus 5.40 billion units worth RM7.35 billion.

Cypark secures 25-year waste management concession from govt

KUALA LUMPUR (Nov 20): Cypark Resources Bhd’s wholly owned unit Cypark Smart Technology Sdn Bhd (CST) has secured a 25-year solid waste management concession from the Malaysian government.

CST, it said, inked the concession agreement on Nov 9 with the Solid Waste and Public Cleansing Management Corpand the government of Malaysia; the government was represented by the Ministry of Housing and Local Government.

Cypark told Bursa Malaysia that the concession is on a build-operate-manage-and transfer concept, but did not specify its monetary value. It only said it expects the contract to contribute positively to its earnings and net assets for the financial years covered under the concession.

Under the agreement, which has been fully executed, CST is granted the rights to design, construct, maintain, operate and manage a solid waste modular advanced recovery and treatment systems, incorporating waste-to-energy systems (SMART WTE System) at Ladang Tanah Merah, Negeri Sembilan.

The SMART WTE System, it said, utilises 100% clean technology concepts and system to reproduce renewable source for the production of renewable energy.

The system consist of a waste receiving facility, a waste segregation facility, a waste recycling facility, a waste to energy plant, a fully anaerobic bioreactor system, and a sanitary landfill.

“Under the agreement, the government shall deliver contracted solid waste from designated scheme areas to CST for treatment and disposal at the Smart WTE system.

CST, it said, shall be entitled to an agreed fee as defined in the concession agreement. The quantum of the fee, however, was not specified.

“CST shall also be generating revenue from sales of electricity for converting the waste to clean renewable energy under the Sustainable Energy Development Authority Malaysia (SEDA) Act.

“CST has been successfully granted Feed-in Tariff (FiT) approval to supply 25MW renewable energy from waste to energy source by SEDA, pursuant to Section 7 of the Renewable Energy Act 2011,” it added.

Cypark is involved in integrated environmental engineering and provides technology. It also provides services such as landfill restoration, waste-water management and treatment, and integrated conception-to-maintenance cycle of a solar farm.

Its shares rose two sen or 1.07% to close at RM1.89 today, for a market capitalisation of RM470 million.

http://www.theedgemarkets.com/my/article/cypark-secures-25-year-waste-management-concession-govt

Good morning abang duit, you are most welcome. Have a wonderful weekend.

Short Position 

Instantly transformed?

Instacom Group Bhd got a pretty big dose of endorsement last week. CIMB Research wrote a comprehensive 20-page report on the company detailing how the “sleepy telecommunications tower builder” will transform into a ”giant contractor” with the injection of the Neata group, which is involved in aluminium production and construction, into the company.

The market had taken a dim view when Instacom acquired a 35% stake in the Neata group in the beginning of the year, which together with related companies became subsidiaries of the company earlier this month. To reflect the change in focus, the company has proposed to change its name to Vivocom International Holdings Bhd, which is touted as the key to Instacom’s transformation because of its relationship with CRCC Malaysia Bhd.

Last week, the company bagged three construction jobs worth RM260mil from CRCC Malaysia Bhd. The research house says the oustanding order book of RM2bil could rise to RM5bil over the next one to two years because of Vivocom.

CRCC Malaysia is part of China Railway Construction Corp Ltd, Hong Kong-listed and China’s largest construction company.

There are several interesting points to note in Instacom’s transformation. Why does Neata need to be injected into Instacom? Considering the string of projects and the potential of Vivocom, why not opt for an initial public offering (IPO) where it can extract maximum value a few years down the road when it has the track record?

The report forecast that net profit and revenue for Instacom will jump substantially in the next two years. From a net profit of RM7.8mil expected this year (after accounting for two months worth of earnings from Neata) to almost RM240mil for the financial year ending Dec 31, 2017 (FY17).

Revenue will rise from RM195mil this year to RM3.23bil in FY17. With that kind of profit projections, Neata can easily lure pre-IPO investors if it needs capital in the short term. Even banks may be interested in financing.

The compounded annual growth rate two-year earnings per share is forecast at an “explosive” 456%. Gross profit margins are at 12% to 13% because of Instacom’s strategy of going for negotiated tenders versus open tenders that usually earn contractors 8% to 9%.

CIMB Research has initiated coverage on the stock with a 72 sen per share target price and an “add” recommendation.

Instacom shares were most active but the price remained unchanged at 31.5 sen yesterday. Whether Instacom lives up to its billing is left to be seen.

http://www.thestar.com.my/Business/Business-News/2015/11/21/Short-Position/?style=biz

Making money from wood

Furniture stocks have been on the rise. Growing rapidly in their share price, the makers of furniture have been riding a crest of optimism from the weaker ringgit. As a beneficiary of the stronger US dollar against the ringgit, furniture makers have seen a boom in their business.

According to statistics, furniture makers are exporting loads of their products overseas, especially to the US. The financial of a number of furniture stocks too have improved and the improving economy in the US is helping the prospects of furniture stocks on Bursa Malaysia.

The gains seen in recent months have been huge. Exports of furniture and parts have been in double digits over the past three months.

Helping exports has been the improvement in the US economy, which has expanded steadily and that has allowed furniture exporters to sell more goods abroad.

It is just not the furniture makers that have benefited. Timber stocks too have improved in their price as companies such as Evergreen Fibreboard Bhd has seen a jump in not only its share price but also its financial performance.

The question that remains is just how long will this last? For the industry that has experienced patchy times, they will be taking in the boom times in their stride.

http://www.thestar.com.my/Business/Business-News/2015/11/21/Making-money-from-wood/?style=biz

Potential for Halex to stage strong rebound

HALEX Holdings Bhd plunged from a historical peak of RM1.03 on April 25 last year, all the way to an all-time low of 32 sen on Sept 8 amid persistent selling pressure.

Thereafter, in the wake of renewed bargain-hunting interest, this stock staged a rebound, pushing prices to as high as 71 sen in mid-September. The steep rally lasted only a week as it could not attract follow-through buying, thus forcing the bulls to abandon the recovery move.

Subsequently, it succumbed to pressure to retrace back to the 45-sen area and turned sideways on consolidation, lasting two months before prices bounced off again on fresh nibblings. Halex recovered to a high of 59.5 sen during intra-day session yesterday.

Based on the daily chart, the prevailing trend remained in correction mode, but this stock has the potential of coming out of the doldrums, with investors’ interest making a comeback and lifting prices above the uppermost 200-day simple moving average.

A breach of the descending line, resting at 66 sen, followed by a decisive penetration of the 71-sen barrier over the next several days, would signal a bullish turnaround.

Greater resistance is expected at the 79 sen-80 sen band, of which another positive breakthrough would clear the way for the bulls to re-test the all-time peak of RM1.03 or to explore uncharted territory.

Elsewhere, the daily slow-stochastic momentum index was on the rise after triggering a short-term buy near the neutral area a week ago.

Similarly, the 14-day relative strength index climbed from a reading of 41 on Nov 11 to settle at the 86-point level yesterday.

In addition. the daily moving average convergence/divergence histogram expanded sharply against the daily signal line to stay bullish. It had issued a buy in mid-week.

Technically, indicators are painting an encouraging pictogram, implying Halex shares can advance in the short term, with the prospects of carving out a new leg of uptrend.

On the downside, the immediate support is anticipated at the 54-sen floor and important support is at the 45-sen mark. – K.M. Lee

Three sectors shine despite gloomy economy

IT is not all doom and gloom for some sectors on Bursa Malaysia that have to deal with the weak ringgit and sluggish economy.

Several sectors have shrugged off such concerns such as the glovemakers and semiconductor players. Another such sector on Bursa Malaysia that has been sailing through the current choppy period is the plastic and packaging makers.

Maybank IB Research says in a report that the manufacturing-based exports continue to record robust double-digit growth of 16.1% year-on-year despite external economic headwinds.

In the past, plastics and packaging companies had been under the investors’ radar because of low margins and subdued growth momentum.

But thanks to the weaker ringgit and lower oil prices, the sector has come back to life, especially for the small-to-mid cap stocks.

Counters in this sector have received a lot of attention this week with their share prices spiking to new highs, which in turn pushing up the sector’s price-earnings multiple.

Year-to-date, shares in companies such as Scientex Bhd, SLP Resources Bhd as well as Daibochi Plastic and Packaging Industry Bhd have soared 11.42%, 227% and 22.7% respectively. Since early October, these counters have seen their share prices rising, as much as 6% for Scientex and 17% for SLP and Daibochi.

Daibochi and SLP are both heavily involved in consumer-related packaging industry that demand higher valuation than the companies that are heavily engaged with industry-related packaging such as Scientex and Thong Guan Industries Bhd, analysts say.

Daibochi is trading at 21.7 times forward earnings, SLP at 19.67 times, Scientex 9.6 times and Daibochi 22.79 times.

“The consumer packaging sector has higher margins compared with the industry packaging business because they provide more value-added services such as printing,” an analyst says.

http://www.thestar.com.my/Business/Business-News/2015/11/21/Three-sectors-shine-despite-gloomy-economy/?style=biz

Dovish Draghi ready to act 'quickly' to boost inflation

The European Central Bank (ECB) stands ready to act promptly and decisively if it decides that its current policy is failing to stimulate the sluggish euro zone economy, its president Mario Draghi told the region's bankers.

It was the second dovish speech in a week for Draghi, who continues to hint that a ramping-up of the ECB's trillion-euro asset purchase program could be announced in December.

http://www.cnbc.com/2015/11/20/dovish-draghi-ready-to-act-quickly-to-boost-inflation.html

Ikhmas Jaya secures RM161.12m construction job from MRCB

KUALA LUMPUR (Nov 20): Bore piling and bridging specialist Ikhmas Jaya Group Bhd ( Valuation: N/A, Fundamental: N/A) was just awarded a RM161.12 million contract by Malaysian Resources Corp Bhd (MRCB) ( Valuation: 1.40, Fundamental: 1.30) for a number of construction works for a proposed mixed development at Persiaran Barat, Section 52, Petaling Jaya, Selangor.

Ikhmas Jaya, which debuted on the Main Market of the local bourse on July 28, said its wholly-owned unit Ikhmas Jaya Sdn Bhd accepted a letter of award from MRCB's wholly-owned unit MRCB Builders Sdn Bhd, today.

The job entails the substructure works for Towers 2, 3, 5 and 6 of the mixed project's Phase 1A, Phase 1C and Phase 1F on Lot 12 of Persiaran Barat.

The job is for a period of 20 months and is expected to commence today and be completed by July 19, 2017.

While the project will not have any material effect on Ikhmas Jaya's earnings and net assets for the financial year ending Dec 31, 2015 (FY15), it "is expected to contribute positively to the earnings and net assets for FY16", the group noted.

In a separate filing, the group announced that its net profit for the third quarter ended Sept 30 (3QFY15) rose 6.35% to RM7.44 million from RM7 million in last year's corresponding quarter, mainly due to a higher contribution from an infrastructure project, as well as the finalisation of the railway electrification and double tracking project.

Quarterly revenue, however, shrank by 11.58% to RM63.52 million from RM71.84 million last year.

For its cumulative nine-month period, Ikhmas Jaya's profit rose 45% to RM22.88 million from last year's RM15.78 million, while revenue gained 2.89% to RM204.23 million from RM198.54 million; both top and bottom line improvements were primarily due to higher contributions from its infrastructure projects.

Moving forward, the group expects its performance for FY15 to improve on the back of the continued growth expected from the piling and foundation services market in Malaysia.

At market close, Ikhmas Jaya shares were unchanged at 69.5 sen, which gave it a market capitalisation of RM361.4 million. Its share price is now 21.93% higher than its initial issue price of 57 sen.

http://www.theedgemarkets.com/my/article/ikhmas-jaya-secures-rm16112m-construction-job-mrcb

Ewein's 3Q profit jumps more than 20-fold

KUALA LUMPUR (Nov 20): Sheet metal manufacturer Ewein Bhd ( Valuation: 1.40, Fundamental: 0.95) reported that is profit for the third quarter ended Sept 30, 2015 (3QFY15) jumped more than 20-fold to RM8.42 million from RM389,000 in last year's corresponding quarter.

Revenue for 3QFY15 more than doubled to RM29.21 million from RM13.42 million.

In its Bursa Malaysia note, the group said its early adopting of MFRS 15: Revenue from contracts with customers has recognised revenue from its property development based on stage of completion method.

In July, it said Ewein Zenith Sdn Bhd began the development of a 50-acre wellness resort city in Penang known as Wellness City of Dreams, which is worth RM800 million and is expected to contribute RM200 million in pre-tax profit to the group starting 2016.

Ewein Bhd's land unit Ewein Land Sdn Bhd owns 60% of Ewein Zenith.

Profit for its cumulative nine-month period rose more than tenfold to RM9.62 million from RM759,000 last year while its cumulative revenue saw a 46.32% increase to RM49.47 million from RM33.81 million.

Moving forward, the group is optimistic that the manufacturing division will be positive and it is poised to further improve in view of the current weak currency environment for the remaining months of this year.

"The Board expects a significant contribution from its property development segment, which will be expected to drive the Group's performance positively in the future," said the announcement.

Ewein shares closed at RM1.01, up by one sen or 1% with 4,492,400 shares traded for a market capitalisation of RM210.9 million.

http://www.theedgemarkets.com/my/article/eweins-3q-profit-jumps-more-20-fold

Prestariang to be main implementer of Immmigration Dept's SKIN

PUTRAJAYA (Nov 20): Information and communications technology firm Prestariang Bhd ( Valuation: 0.50, Fundamental: 2.70) has been chosen as the main implementer of the Immigration Department's 'Sistem Kawalan Imigresen Nasional' (SKIN).

Prestariang chief executive officer Dr Abu Hassan Ismail inked the letter of agreement for the job with Immigration Department Director General Datuk Mustafa Ibrahim today in front of Home Affairs Ministry secretary-general Datuk Seri Alwi Ibrahim.

However, when pressed for more details, Abu Hasan Ismail declined to provide further information, pending further finalisation of the agreement with the Immigration, and announcement to Bursa Malaysia.

"The contract is status-quo for now as we have only secured the letter of agreement in principle. I cannot comment much on the contract value or any other financial details, pending further finalisation with the Immigration Department. Please wait for more details as we announce to Bursa Malaysia from today onwards," Abu Hasan toldThe Edge Financial Daily after the signing ceremony.

Alwi said the SKIN programme is part of the ministry's modernisation programme to improve efficiency in national security, particularly border control.

"One of the important elements in the SKIN programme is to support the prevention and combating of serious crimes, which the Malaysian government has signed with the United States government yesterday," said Alwi, who witnessed the signing ceremony on behalf of Deputy Prime Minister and Home Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Alwi added that the ministry expects the SKIN system to be fully operational by as early as next year.

"Once we finalise the technical aspects, then we expect the SKIN system to be integrated at airports and the country's entry points," he said to reporters.

At 3.58pm, Prestariang was trading one sen or 0.39% higher at RM2.60, for a market capitalisation of RM1.27 billion. Year to date, the counter has risen about 80.56%.

http://www.theedgemarkets.com/my/article/prestariang-be-main-implementer-immmigration-depts-skin

Magni Tech

http://fatta888.blogspot.my/

Evergreen Fibreboard's 3Q net profit almost triples on forex gain

KUALA LUMPUR (Nov 20): Evergreen Fibreboard Bhd ( Valuation: 0.30, Fundamental: 1.00)'s net profit almost tripled to RM27.59 million or 5.38 sen a share for the third quarter ended Sept 30, 2015 (3QFY15) from RM10.08 million or 1.96 sen a share a year ago, as it gained from a strengthened US dollar.

The group recorded a foreign exchange gain of RM8.02 million in the latest quarter, compared to RM1.55 million in the previous corresponding quarter.

In a filing to Bursa Malaysia, the manufacturer of medium density fibreboard (MDF) said that its net profit increase was also contributed by the lower cost of glue, higher operational efficiency as well as synergistic cost savings.

Its revenue for the quarter rose 9.2% to RM256.04 million from RM234.49 million in 3QFY14, mainly from higher selling price as a result of the stronger US dollar.

Net profit for the nine-month period (9MFY15) came in at RM71.53 million, as compared to a net loss of RM14.2 million a year ago, while revenue increased 8.5% to RM748.13 million from RM689.82 million in 9MFY14.

Evergreen said the increase in its cumulative period's revenue was contributed by higher sales volume, as well as the impact of a stronger US dollar.

Moving forward, the group said steady global MDF demand and the strong US dollar — its exports are denominated in the greenback — are external factors that continuously enhance its performance.

"Coupled with the group's internal efforts on better products mix, cost control measures, maximising productivity and equipment enhancement via modernisation and automation on manufacturing processes, the board is optimistic [about] achieving better results in the next quarter," it said.

Shares in Evergreen closed three sen or 1.38% lower at RM2.14, with 3.51 million shares traded. Its share price gives it a market capitalisation of RM1.11 billion.

http://www.theedgemarkets.com/my/article/evergreen-fibreboards-3q-net-profit-almost-triples-forex-gain

Technical Stocks To Watch on 20/11/2015 – GDEX (0078), EDUSPEC (0107), VS (6963), PRLEXUS (8966) & N2N (0108)

http://fatta888.blogspot.my/

Instacom shares surge after CIMB IB Research report

PETALING JAYA: CIMB Investment Bank Research has initiated coverage on Instacom Group Bhd with an "add" rating and target price of 72 sen, noting that the company will morph into a potential giant construction company with the asset injection of Neata group.

Following the report on Wednesday, Instacom emerged as the most actively traded stock yesterday, and its share price soared 20.7% to its day high of 32 sen at one point. It settled at 31.5 sen, up 5 sen or 18.9%, with 372.5 million shares done.

Following the rise in price and volume of its shares, Bursa Malaysia Securities Bhd slapped Instacom with an unusual market activity (UMA) yesterday.

In its reply, Instacom said it was not aware of any corporate development, rumour, report or any other possible explanation for the rise in its share price and its trading volume save for contracts secured by its subsidiaries totalling RM259.28 million for construction works for the second package for the 1Gateway mixed commercial development in Klang and for the second package for the Pavilion Hilltop condominium project in Mont Kiara as well as to supply tower structures on 30 hub sites across Perak.

Instacom Group, to be renamed Vivocom Intl Holdings Bhd, is an ACE Market-listed builder of telecommunication towers and other related civil works for tower sites, primarily in Sabah and Sarawak.

However, with the asset injection and acquisition of Neata Aluminium in 2015, Instacom has been transformed from a telco tower builder into a potential giant construction company, with an outstanding construction order book of RM2.0 billion as at end-September 2015.

"We initiate coverage with an add rating and SOP-based target price of 72 sen. We value the construction business at 9x FY17 price-to-earnings ratio (P/E), a premium to the small-cap peer contractors P/E of 7-8x.

"We believe that Vivocom has massive P/E re-rating potential given the large valuation gap with its construction peers and zero analyst coverage.

"It is trading at FY17 fully-diluted P/E of 3.0x, 80% discount to the sector FY17 P/E of 14.5x which is unjustified given 456% FY15-17 earnings per share (EPS) compounded annual growth rate. On a Price-to-Book Value (P/BV) basis, the stock is also very cheap, trading at 0.9x FY17 P/BV versus FY17 return of equity of 48%," it said.

The research house believes that the premium is justified as Vivocom is the in-house contractor for global Chinese construction giant, China Railway Construction Corp Ltd (CRCC), in Malaysia and Southeast Asia – thus elevating its status as an emerging construction giant.

While Malaysian contractors typically earn pre-tax margins of 8-9%, CIMB IB Research noted that Vivocom earns 12-13% margins given its business model of primarily engaging in negotiated tenders. "Being CRCC's in-house contractor enables this," it said.

By FY17, it forecast Vivocom's revenue profile to completely transform from a telco tower-based company to a construction company, where construction will contribute 95% of group revenue and 97% of gross profit.
"We consider the telco business to be non-core and we believe that it could be divested in the future," it said.

CIMB IB Research said Vivocom is likely to apply for an upgrade to the Main Market of Bursa Malaysia in 2016, which will help improve its investor profile and investibility.

It pointed out that group CEO Dr Yeoh Seong Mok is the key enabler behind Vivocom's strong relationship with CRCC, having been the latter's Project Delivery Partner and project management consultant for almost RM40 billion worth of projects, via his private consulting company, WY Consultancy & Development Services Sdn Bhd.

CIMB IB Research tipped Vivocom to be a direct beneficiary of the Penang Transport Master Plan. "We believe that investors need look no further than Vivocom. CRCC is the engineering procurement and construction contractor and design consultant while WY Consulting is the project management consultant.

"Management is very confident of securing subcontract jobs for this mega project given CRCC's and WY Consulting's direct involvement in the project," it added.

http://www.thesundaily.my/news/1616102

World markets received positively when FED has firm decision of hike
Posted in Uncategorized on 19/11/2015 by J&J 35

World markets are receiving FED minutes well for near rate hike with gradual increase later on.

RM advanced slightly in the morning.  We believe if the rate hike finally become reality in December.  USD will have less speculation momentum and correct from this level.

More ECB bond-buying just became a safer bet

The European Central Bank (ECB) considered adding more stimulus to its struggling economy at its last policy meeting and saw "potentially worrisome" downward revisions in consumer price growth.

According to the minutes of the meeting, released Thursday, the risk of growth-sapping deflation has increased since the ECB's projections in September and the central bank is anticipating that the inflation rate will take longer to move back to its 2 percent target.

"The impact of external factors and heightened uncertainty raised the possibility that the ECB's measures, despite their magnitude, might not be gaining sufficient traction in the present environment to achieve their ultimate objective in terms of inflation rates," the minutes stated.

"It was argued that, in such an environment, the risk of deflation remained relevant. Against this background, the view was put forward that a case could be made for considering reinforcing the ECB's accommodative monetary policy stance already at the current meeting and, in any case, to act sooner rather than later."

http://www.cnbc.com/2015/11/19/more-ecb-bond-buying-just-became-a-safer-bet.html

China's PBOC announces more easing measures

China's central bank provided yet more stimulus to the country's economy on Thursday by lowering the interest rates on the loans it gives to banks.

The move, which will come into effect on Friday, will cut the overnight and seven-day rates it gives to Chinese lenders by 2.75 percent and 3.25 percent respectively.

http://www.cnbc.com/2015/11/19/chinas-pboc-annocunes-more-easing-measures.html

Halex to supply rice to Govt Food Bank project under RM184m deal

KUALA LUMPUR: Halex Holdings Bhd has been awarded a contract of up to RM184mil to supply and package white rice under the Food Bank Project launched by the Malaysian Government.

The company said in its filing with Bursa Malaysia on Thursday that its trading subsidiary Halex (M) Sdn Bhd accepted the offer from Koperasi Majlis Belia Felda Malaysia Bhd (KMBFM) to procure and package rice for the project, known as Project Gedung Makanan Negara (GMN).

“The estimated total contract value is up to RM184mil or 80,000 tonnes of white rice per annum,” Halex said. 

"However, the value is only an estimate and KMBFM does not guarantee that the full amount will be purchased. The actual amount purchased will vary depending on the purchase order given from time-to-time," it added.


Halex said the contract is for two years up to 2017, and may be extended by one year to 2018, subject to negotiation and mutual agreement.

It said the contract is an expansion of its rice trading business following Halex’s recent proposed acquisition of a 70% equity interest in SL Aktif Sdn Bhd, which also received an offer from KMBFM to procure and package rice under the GMN Project as announced on Nov 11.

KMBFM was incorporated on Jan 27, 2012 to carry out contracting activities and participate in awards from government and private sector. These include management advisory services, agricultural activities and retail businesses.

Halex expects the contract to contribute positively to its results for the financial year ending Dec 31, 2016.

http://www.thestar.com.my/Business/Business-News/2015/11/19/Halex-to-supply-rice-for-Government-Food-Bank-project/?style=biz

Thong Guan’s 3Q earnings surge 130% on higher export margin

KUALA LUMPUR (Nov 19): Plastic packaging manufacturer Thong Guan Industries Bhd ( Valuation: 1.40, Fundamental: 2.25) saw its net profit more than doubling year-on-year to RM11.3 million from RM4.9 million in its third quarter ended Sept 30, 2015 (3QFY15), on higher margin from export sales that are mostly denominated in US dollar.

Its earnings per share for the quarter thus rose to 10.7 sen from 4.67 sen in the previous year's corresponding period, its filing to Bursa Malaysia today showed.

Its China-based operations under the plastic products segment (its main earnings contributor), which had turned profitable during the current quarter, also boosted its latest quarterly earnings.

The quarter’s revenue, however, slid 5% to RM182.3 million from RM191.9 million in the same period last year, largely because of lower selling prices due to lower prices of raw materials.

Its cumulative nine months’ (9MFY15) net profit, meanwhile, was up 6.2% to RM23 million from RM21.7 million in 9MFY14, due to the same reason for its quarterly profit rise. 

Its 9MFY15 revenue, however, slid 8.7% to RM516.4 million from RM565.6 million, again due to lower selling prices due to lower prices of raw materials. 

On prospects, the group said its 33-layer nano-technology strech film line is expected to be commissioned by end-2015.

“Marketing efforts have commenced and order enquiries are promising. The group expects the nano-layer line and its R&D centre to play an important role to lead the group forward in its effort to move up the value chain,” it said.

Meanwhile, it expects its food, beverage and other consumable business segment to continue its steady progress, with consistent effort on marketing and promotional activities.

“The group’s venture into the noodle business will see significant contribution upon completion of its manufacturing facilities expansion at a new production site, which will be operational by the first quarter of 2016. This will be a new income stream for the food division,” it said.

The depreciation of the ringgit against the US dollar will continue to benefit the group, it added.

CIMB Research starts coverage on Instacom, target 72 sen

KUALA LUMPUR (Nov 19): CIMB IB Research ( Valuation: 1.65, Fundamental: 1.05) has initiated coverage on Instacom Group Bhd ( Valuation: 0.00, Fundamental: 1.25) at 23 sen with an “Add” rating and target price of 72 sen and said Instacom (to be renamed Vivocom) will morphe into a potential giant construction company, with the asset injection of Neata group.

In a noet Nov 18, the research house said the outstanding orderbook of RM2 billion could rise to RM5 billion over the next 1-2 years.

The newly renamed Vivocom is the in-house contractor for global Chinese construction giant, CRCC in Malaysia and South East Asia.

“We initiate coverage with an Add rating and SOP-based target price of 72 sen, valuing the construction business at 9x FY17 P/E.

“We believe that Vivocom has massive P/E rerating potential given the large valuation gap with its construction peers and zero analyst coverage.

“It is trading at FY17 fully-diluted P/E of 3.0x, 80% discount to the sector FY17 P/E of 14.5x which is unjustified given 456% FY15-17 EPS CAGR. On a P/BV basis, the stock is also very cheap, trading at 0.9x FY17 P/BV versus FY17 ROE of 48%,” it said.

Technical Stocks To Watch on 19/11/2015 – POHUAT (7088), UMSNGB (7227), NYLEX (4944) & SCABLE (5170)

http://fatta888.blogspot.my/

Support Line

MAGNA Prima spiked for the second straight session, pushing prices to as high as RM1.15 during intra-day trading, the best in almost four months, amid follow-through bargain hunting nibbling. Apparently, the stochastic and the 14-day relative strength index are on the rise while the moving average convergence/divergence histogram continues to expand upward against the signal line. suggesting more advances can be expected in the short-term. Initial resistance is envisaged at the RM1.20-RM1.25 band and a major breakout of the upper RM1.40 stiff barrier would see the bulls turning more aggressive. Support is pegged at the 100-day simple moving average of 99.5 sen.

ORIENTAL Food Inds shares remained trapped within a narrow range a shade below the one-week-old record high of RM2.26, undergoing a healthy consolidation. Technically, all the short-term indicators still are painting a positive pictogram, implying the bulls are set to explore the unknown territory soon. As for the downside, concrete support floor is seen at the 14-day simple moving average of RM2.09.

PUBLIC Packages Holdings reversed from an early high of RM1.13, the best since August 1997, to finish a tick lower owing to an apparent profit-taking activity. Based on the daily chart, a major breakout was sighted on Tuesday and theoretically, it will open the windows for more scaling going forward. Initial target is to challenge the immediate resistance of RM1.20, of which a clear penetration may send prices up to the RM1.36-RM1.40 range. Current support is lying at the RM1.04 mark, followed by the 93 sen floor, which is the 14-day simple moving average line.

The comments above do not represent a recommendation to buy or sell.

- The Star Business 19/11/2015

Dufu & Mmode

http://fatta888.blogspot.my/

Support Line

FIBON rose to a high of 67.5 sen during intra-day session, the best since November 2013, amid follow-through buying momentum. Based on the daily chart, prices are expected to face stiff resistance at the 68.5 sen barrier, of which a major breakout may clear the way for the bulls to sustain the rally to the 90 sen mark, or the RM1 psychological level in the near-term. Concrete support is pegged at the 14-day simple moving average, now resting at the 51.5 sen floor, and still rising.

ONLY World Group shares hit a high of RM2.85 during intra-day session, inching nearer to the historical peak of RM2.99, set on July 24, amid renewed bargain hunting interest. Technically, all the short-term indicators, such as the stochastic, the 14-day relative strength index and the moving average convergence/divergence histogram are painting a promising landscape, implying prices are poised to explore the unknown territory soon. Initial support is lying at RM2.69 and solid support is seen at the RM2.52 level, which is the 100-day simple moving average line.

A FUTILE attempt to penetrate the 100-day simple moving average of 70 sen last Thursday, dragged Salcon shares back into consolidation mode. The trend ahead is very straightforward. A decisive penetration of the strong resistance of 70.5 sen barrier is likely to see the fate of this counter turning brighter, enroute to the upper hurdle of 85 sen, on renewed buying interest. However, in the case the 62 sen floor is violated, prices are in great danger of returning to the recent lows of 55.5 sen, or lower, in the wake of fresh liquidation pressure.

The comments above do not represent a recommendation to buy or sell.

http://www.thestar.com.my/Business/Business-News/2015/11/17/Support-Line/?style=biz

Some small cap shares worth looking at, during these tough times

SELECTIVE small cap consumer stocks seem to be weathering the weak sentiment on the Kuala Lumpur stock market quite well as they represent resilient stock picks for the longer term.

“The retail sector is a bit dampened by the implementation of the goods and services tax (GST),’’ said Pong Teng Siew, head of research, Inter-Pacific Securities. “It may be time to look at selective consumer stocks when it is not hot.’’

Examples of consumer stocks with potential, Pong said, are Ajinomoto; Tien Wah (makes boxes for cigarettes and is trading below its net tangible asset); and Canone (which is riding on its unit Kian Joo).

Export-oriented companies like Prolexus and Magnitech, which manufacture for Nike in the US, are doing well; they enjoy steady earnings and are cash rich.

“Manufacturing is doing quite well, with non-performing loans falling off,’’ said Pong, adding that a higher inflationary outlook increases pricing power while the small caps run on the stockmarket helps them to raise money for their operations. Their raw materials are not necessarily imported as much is recycled or manufactured locally.

Packaging players that are proxies to Nestle include Tomypak and Daibochi for which stock prices have been climbing steadily.

Food-based manufacturers like Hup Seng Industries and Oriental Food Industries also have potential, said Pong, while Kawan Food and QL Resources are viewed positively by Chris Eng, head of research, Etiqa Insurance & Takaful.

Eng sees more potential in consumer stocks that are involved in exports or markets outside of Malaysia, given that the weak ringgit is negative for most consumer stocks that import raw materials in US dollars and sell in ringgit.

Danny Wong, CEO, Areca Capital, views that this may not be the time for consumer stocks especially when costs are rising with consumer sentiment still weak and expected to remain so for a few more months if the US Fed hikes interest rates.

Stock picks are important, said Pong. Prolexus and Magnitech manufacture on a cost plus basis (the cost of production plus a fixed rate of profit) while Ajinomoto uses local raw materials.

A trading consumer stock, Pong suggested, could be AEON at RM2.60 per share.

http://www.thestar.com.my/Business/Business-News/2015/11/16/Slow-and-steady-wins-the-race/?style=biz

Eye on stock: TMC Life Sciences Bhd

AFTER peaking out temporarily at an all-time high of 75 sen on Feb 9, TMC Life Sciences Bhd retraced slightly from the top to trade range-bound on consolidation owing to an apparent profit-taking activity.

However, what appeared to be a typical process gave way later, succumbing to extended selling pressure and subsequently, prices slipped to an eight-month low of 46 sen on Aug 25. At that moment, this stock looked frail and in great danger of breaking down from the last leg of the previous massive rally, but a fresh bout of renewed bargain hunting buying momentum emerged expectedly from the sideline to the rescue, helping this stock to move up.

TMC Life shares recovered to a five-month high of 68 sen during intra-day session yesterday, bucking the sluggish performance of the principal market trend.

Based on the daily chart, this stock is on a steep uptrend the past several days, breaching the uppermost 200-day simple moving average (SMA) line with ease.

Theoretically, the present upward thrust is poised to continue, but trading volumes must expand accordingly to sustain the trend ahead. Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index rose deeper into the overbought territory but retained the buy signal, triggered earlier this month.

Likewise, the 14-day relative strength index finished at a high of 84 points, up from a reading of 43 in the previous week. In addition, the daily moving average convergence/divergence histogram firmed sharply against the daily trigger line to stay bullish. It had issued a buy call in mid-week.

Technically, indicators are painting a promising pictogram, implying TMC Life shares are likely to advance amid follow-through interest.

Initial upside objective would be to fill the 67 sen-70 sen minor gap and a breach of the historical apex of 75 sen would open the doors for the bulls to explore the unknown area. As for the downside, initial support is pegged at the 200-day SMA of 61.5 sen. An additional floor is lying at the 59.5-sen level. 

The comments above do not represent a recommendation to buy or sell.

Technical Stocks To Watch on 13/11/2015 – LCTH (5092), PPHB (8273) & HEXZA (3298)

http://fatta888.blogspot.my/

Supermax clinches NHS licence to supply gloves to UK hospitals

KUALA LUMPUR (Nov 12): Supermax Corp Bhd ( Valuation: 1.40, Fundamental: 1.00)'s receipt of a licence to supply medical gloves to the National Health Service (NHS) in the United Kingdom (UK) is expected to contribute positively to its earnings and net assets for four years from the financial year ending June 30, 2017.

In a filing with Bursa Malaysia today, Supermax said its UK-based wholly-owned Supermax Healthcare Ltd was awarded the licence by NHS, which covers every UK hospital.

Through the award, Supermax would be able to benefit from the business that sees an annual medical glove consumption worth about £50 million (RM332 million).

"With this licence, Supermax will be in a position to capture a share of the lucrative NHS business. There will be no immediate significant financial impact in the coming quarters from the award.

"Going forward, it is expected to contribute positively towards the earnings and net assets of Supermax group for the financial years ending June 30, 2017, 2018, 2019 and 2020," it said.

The group said the award will not have any effect on the share capital and substantial shareholders' shareholding of the company.

Supermax shares rose 13 sen or 5.6% to close at RM2.45 for a market capitalisation of RM1.55 billion.

http://www.theedgemarkets.com/my/article/supermax-clinches-nhs-licence-supply-gloves-uk-hospitals

Support Line

CAREPLUS Group Bhd shares hit an all-time high of 60 sen on Oct 28 before pulling back slightly to trade range-bound owing to apparent profit-taking activity. However, the daily slow-stochastic momentum index is rising. Together with the moving average convergence/divergence histogram expanding upwards in tandem with the daily signal line, there may be more advances in store for this counter. A breach of the 60-sen barrier would send the bulls into unknown territory, while concrete support is pegged at the 21-day simple moving average of 51 sen.

CWORKS Systems Bhd mended to a seven-month high of 29 sen during the intra-day session amid fresh bargain-hunting interest. Based on the daily chart, prices had penetrated the mid-term bearish descending line of 28 sen, implying that the recent correction is over. Moving forward, they are expected to firm on follow-through buying, en route to the 33- or 40-sen mark in the immediate term. Important support is resting at the 100-day simple moving average of 27 sen, of which a crack may drag this stock back to its recent low of 16.5 sen.

WEIDA (M) Bhd shares inched nearer to their historical peak of RM2.09, set on Aug 19 last year, on renewed bargain-hunting buying momentum. Technically, the stochastic momentum index has issued a short-term buy signal, while the moving average convergence/divergence indicator is expanding positively against the trigger line, indicating that the bulls are likely to explore uncharted territory in the near term. Solid support is seen at the 14-day simple moving average of RM1.76, followed closely by the RM1.72 level.

The comments above do not represent a recommendation to buy or sell.

http://www.thestar.com.my/Business/Business-News/2015/11/12/Support-Line/?style=biz

Technical Stock To Watch on 12/11/2015 – CAREPLS (0163)

http://fatta888.blogspot.my/

Technical Stocks To Watch on 11/11/2015 – EKSONS (9016), WTK (4243), TAANN (5012), MIECO (5001), SIGN (7246) & DOMINAN (7169)

http://fatta888.blogspot.my/2015/11/technical-stocks-to-watch-on-11112015.html

WTK Holdings Bhd - Overflowing Cash Pile of RM1.018 Billion

http://klse.i3investor.com/blogs/bursakakis/85910.jsp

CIMB Research upgrades Malaysian banks to Overweight

KUALA LUMPUR: CIMB Equities Research is upgrading Malaysian banks from Underweight to Overweight due to enticing valuations, better earnings growth in 2016, a subsiding equity capital raising spree, the benefits of cost-cutting, attractive dividend yields, and flush liquidity.

It said on Wednesday RHB Capital remains its top pick for the sector.

“We see value emerging for Malaysian banks following the plunge in their share prices in the past one to two years. Four out of seven banks under our coverage traded below their five-year averages on Sept 30, 2015 in terms of their rolling forward price-to-earnings (P/Es), to the extent of two to three standard deviations below in the cases of RHB Capital, AMMB and Alliance.

http://www.thestar.com.my/Business/Business-News/2015/11/11/CIMB-Research-upgrades-Malaysian-banks-to-Overweight/?style=biz

Glovemakers rally on Bursa

KUALA LUMPUR: Shares in export-oriented companies, led by big glovemakers, rallied to new highs on Monday as investors expect the weaker ringgit will boost their earnings.

The ringgit fell 1.5% to RM4.37 against the US dollar on Monday on the back of stronger US economic data, which in turn prompted a rally in glovemakers’ shares.

Kossan Rubber Industries Bhd and Hartalega Holdings Bhd both closed at new all-time highs of RM8.70 and RM5.50 respectively. Top Glove Corp Bhd also closed at a new high of RM9.72 per share.

The ringgit’s decline also prompted a strong rally in companies with a large revenue base from overseas sales.

Daibochi Plastic and Packaging Industry Bhd, which derives more than 50% of its sales mix from overseas markets, rose 7.4% to a new all-time high of RM4.62 on Monday.

Similarly, carton boxes manufacturer Box-Pak (M) Bhd, which gets the majority of its revenue from its plants in Vietnam, rose 9% to a new high of RM3.

Manufacturers such as glovemakers and packaging companies are also a significant contributor to external trade, which could explain the rally in their share prices.

Recently released exports growth figures in September had beaten analysts’ expectations with an 8.8% increase on a year-on-year (y-o-y) basis, compared to a consensus forecast of 3%.

Manufacturing-based exports continued to record robust double-digit growth of 16.1% year-on-year despite external economic headwinds, said Maybank IB Research in a report.


http://www.thestar.com.my/Business/Business-News/2015/11/11/Glovemakers-rally-on-Bursa/?style=biz

We are positive towards Q1 2016
Posted in Uncategorized on 08/11/2015 by J&J 35

Recovering oil price follow by Ringgit.  FED increases rate with less speculation on dollar.  Easing on China to spur internal growth.  Expecting even more reinvestment due to weak Ringgit.  Valuecap expected to kick start between Dec 15 to Jun 16.  I am not 100% confident but likely 80% strong chance to have a good quarter in 2016.  We suggest buy on dip for major bluechips and grow stocks

SEA LION EXPLORATION WELL STATUS

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4914501

China's trade drops well below expectations in October

BEIJING -- China's trade figures disappointed analyst expectations by a wide margin in October, reinforcing views that the world's second-largest economy will likely have to do more to stimulate domestic demand given stubborn softness in overseas markets.

While Beijing has already repeatedly cut interest rates and softened the exchange rate to prop up the economy, latest trade numbers suggest that a greater risk of a hard landing remains.

October exports fell 6.9 percent from a year ago, dropping for a fourth month, while imports slipped 18.8 percent, leaving the country with a record high trade surplus of $61.64 billion, the General Administration of Customs said on Sunday.

http://www.cnbc.com/2015/11/07/chinas-trade-drops-well-below-expectations-in-october.html

SLP Resources' 3Q net profit triples, declares 1.5 sen special dividend

KUALA LUMPUR (Nov 6): SLP Resources Bhd ( Valuation: 1.10, Fundamental: 3.00) saw its net profit triple to RM9.39 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM3.13 million a year ago, underpinned by higher sales volume, higher end product mix of its flexible plastic packaging products and foreign exchange (forex) gains.

Earnings per share came in at 3.8 sen compared to 1.27 sen a year ago.

The surge in net income was attributed to higher sales volume, higher end product mix of its flexible plastic packaging products for export markets and approximately RM4 million gains in forex, it told stock exchange in a filing today.

However, revenue for the quarter came in 3.4% lower at RM42.66 million from RM44.16 million a year ago due to lower volume for domestic sales of plastic packaging and other polymer products.

In view of the better results, SLP Resources declared a special single-tier interim dividend of 1.5 sen, payable on Jan 8, 2016.

For the nine months ended Sept 30, 2015 (9MFY15), SLP Resources posted a 147.7% growth in net profit of RM20.26 million or 8.19 sen per share from RM8.18 million or 3.31 sen per share last year.

Revenue for the period fell 5.56% to RM126.61 million from RM134.06 million in 9MFY14.

Going forward, SLP Resources said it will remain vigilant especially on the volatility of crude oil and currency, particularly the ringgit, which could have a direct impact on the operational costs and profitability of the group.

It is also confident that the group is in a good position to achieve greater operational efficiency and profit margins expansion following the installation of a new extrusion line last month, which boosts production capacity, and ongoing automation in manufacturing processes.

"Coupled with the encouraging response and demand for the group's MaxInflax range of products for food packaging and hygienic packaging, the board is optimistic [about] delivering satisfactory financial results for the remaining quarter of the financial year ending Dec 31, 2015," it said.

Shares in SLP Resources closed two sen or 1.09% at RM1.86, for a market capitalisation of RM460.04 million.

Eye on stock: Felda Global Ventures

FELDA Global Ventures Holdings Bhd (FGV) shares touched an all-time low of RM1.18 on Aug 26 amid extended selling pressure.

Thereafter, prices turned sideways briefly on consolidation before the bulls embarked on a recovery journey in the wake of fresh bargain hunting interest, which witnessed this stock hitting a high of RM2.04 during intra-day session, the best since May.

Based on the daily chart, FGV has been trending up nicely the past couple of months, with the rising 21-day simple moving average (SMA) line supporting the trend.

However, more significantly, prices had penetrated the uppermost 200-day SMA on Thursday, also the first time in 17 months and more importantly, the breakthrough was accompanied by a bigger trading turnover

Theoretically, they suggest a bullish reversal. Going forward, prices are expected to sustain the upward thrust amid follow-through interest and should there be a pullback due to an overbought condition, it is viewed as a temporary process to avoid overheating, meaning investors can consider accumulating more on weakness, if there is any.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were fast reaching the top, but they show no sign of weakness just yet. A short-term buy signal was triggered late last month.

Mirroring the upward momentum, the 14-day relative strength index firmed from a reading of 52 on Oct 28 to settle at the 85-point level yesterday. In addition, the daily moving average convergence/divergence histogram expanded steadily in tandem with the daily trigger line to keep the bullish note. It has flashed a buy on Tuesday.

Technically, chart development appears pretty promising. Combined with the positive landscape on the indicators, FGV shares are poised to advance in the short term. Initial resistance is envisaged at the RM2.20-RM2.25 area. A breach of the RM2.50-RM2.55 band hurdle may clear the path for the bulls to challenge the heavy upper barrier of RM2.97-RM3 range. The recent breakout point of RM1.88 will now act as the immediate support and concrete floor is pegged at the 21-day SMA of RM1.76.

The comments above do not represent a recommendation to buy or sell.

http://www.thestar.com.my/Business/Business-News/2015/11/07/Eye-on-stock-Felda-Global-Ventures/?style=biz

Pestech consistent performance quarter after quarter

THE future looks bright for power turnkey contractor Pestech International Bhd, which has proven to be a consistent performer, quarter after quarter.

In its report for the final quarter ended June 30, 2015, the group said it was fortunate to have booked in a “comfortable amount” of orders to sustain and maintain its growth in the future, despite the economic uncertainty in the region.

Its shares closed up 19 sen at RM6.80 yesterday with 1.57 million shares traded between RM6.71 and RM6.81.

Its order book stood at RM723mil at the end of the quarter, and is expected to take two years to execute.

In April, Pestech’s 60%-owned subsidiary Diamond Power Ltd signed an agreement with Cambodia’s Mines and Energy Ministry and state-owned Electricite Du Cambodge for the ownership of the 230kV Kampong Cham- Kratie Transmission System project.

In July, the homegrown integrated electric power technology group announced it was teaming up with the Shandong Electrical Engineering & Equipment Group (SDEE) to develop the power infrastructure market in Cambodia.

The company said, in a filing with Bursa Malaysia, that it had signed a memorandum of understanding with the group to assist Electricite du Cambodge in upgrading its national grid operations and maintenance.

They were also tasked with improving the national grid’s efficiency and reducing the transmission lost.

Pestech said it expected the project development to cost US$92.21mil (RM352.9mil).

Kenanga Investment Bank analyst Teh Kian Yeong said Pestech was a stock to watch because its contract flow was strong and the company had consistently proven itself with its strong performance every quarter.

They have an outperform call on Pestech.

“Their tender book value is over RM1bil and they are looking to secure about RM700mil in new contracts.

“This could almost double their current order book,” he says.

Teh adds that the bulk of the group’s earnings were from their projects in the Sarawak Corridor of Renewable Energy (SCORE) and in Cambodia.

The new Build-Operate-Transfer (BOT) concession business that they secured in Cambodia, he says, would be a recurring source of income for the next 25 years,

“Once the construction is complete by 2018, they will continue to see a recurring income from managing the asset itself.

“This will give them a sustainable income for the years ahead,” he said.

Teh says the group was also looking to enter the Philippines market next, and has a good chance of success of breaking into the market.

Pestech recently changed its financial year, from 31 December to 30 June, covering 18 months from January 1, 2014 to June 30, 2015, after which it will end June 30 each year.

According to RHB Research Institute Sdn Bhd (RHB Research) analyst Ng Sem Guan, they were positive on Pestech mostly due to its business model.

They have a buy call on the group.

The group, he says, is in the right business, at the right place, and at the right time.

“They are operating in the South-East Asian region, which is still developing, at a time when there is increasing demand for power.

“If you look at their business model, they have been building their expertise locally, building transmission lines and substations.

“They then took this know-how and moved into less developed countries in the region, and they are now a big player in Cambodia,” he says.

Ng says the company was also expanding its business horizons and was stepping into rail-related infrastructure, and rail electrification.

“In railway projects, there is a lot of potential even locally, with the LRT and MRT projects, for example,” he adds.

With a strong track record in Malaysia, and having strong foothold in the Cambodian market, he said, it would be easier to enter other markets in the region as well.

He says Pestech has good prospects and that they were bullish on the group, going forward.

Although the last financial year had 18 months, due to the change in the group’s financial year, and FY16 will have only 12 months, Ng said their earnings assumptions were even higher for the next year.

This, he says, was on the back of the group’s outstanding order book that in excess of RM700mil at the moment.

In September, Pestech won its first ever 500kW substation project from Tenaga Nasional Bhd with the contract value of RM134.4mil for the Yong Peng East substation

THIS is your best trading strategy: Dennis Gartman

Closely-followed investor Dennis Gartman has given CNBC his best trading strategies, with the chances of a December rate hike by the U.S. Federal Reserve looking more and more like a flip of the coin.

Gartman, editor and publisher of The Gartman Letter, has repeatedly turned cautious on stocks this year, with several sharp drops for U.S. benchmarks. Nonetheless, he reiterated his belief that we are "still in a bull market" for equities until the "trend lines are broken."

"Those who continue to try to sell it short find themselves scrambling almost all the time," he said Friday.

http://www.cnbc.com/2015/11/06/this-is-your-best-trading-strategy-dennis-gartman.html

Earlier this year when Hibiscus announced no oil found in their spud in Norway, the company was not suspended. 

However, Hibiscus was suspended for 3 days before the company announced the successful discovery of oil in Oman. This was because the company need to do the flow test and also conduct analysis on the quality of the oil. Hibiscus also need to seek the approval of the relevant authorities before they can announced the discovery to the public.

Wishing Hibiscus fans all the best.

China enters bull market; time to dip your toe?

With the Shanghai Composite back into a technical bull market Thursday, traders and analysts have been contemplating whether the time is right to gain exposure to Chinese stocks after a rollercoaster year.

China's key Shanghai Composite trimmed gains on Thursday afternoon to close up 1.9 percent. From its low on August 26 it has now rallied 20.34 percent, entering a technical bull market. The Shanghai bourse also hit an intra-day high of 3,585 points Thursday, its highest level since August 21.

"The bulls are back in the China shop," Brenda Kelly, the head analyst at London Capital Group, told CNBC via email on Thursday.

http://www.cnbc.com/2015/11/05/china-enters-bull-market-time-to-dip-your-toe.html

Bonia up 2.65% on favourable research report

KUALA LUMPUR (Nov 5): Shares of Bonia Corporation Bhd (Bonia) rose 2.65% at mid-morning today, after AllianceDBS Research said Bonia was in position to trade higher and that Bonia had on Nov 4, crossed over the 76 sen hurdle to an intraday high of 76.5 sen, before settling near the day’s low at 75.5 sen (up 1 sen or 1.34%).

At 10.54am, Bonia rose 2 sen to 77.5 sen, with 750,500 shares done.

In its evening edition yesterday (Nov 4), the research house said a crossover of the 76 sen hurdle again, would likely see Bonia trading upward with the next upside target pegged between 81 sen and 90 sen.

The research house said that risk taking traders could establish a buying position at 75 sen, on a small pullback.

It said once a buying position is established, a stop loss at 74 sen level must be placed for risk capital protection, and this 74 sen is to be followed by a trailing stop loss strategy.

“If you are prepared to take a trading loss risk of RM10 (excluding brokerage) for RM60 — RM150 potential profit, you may acquire 1,000 shares with a capital amount of RM750, assuming buying order is filled at 75 sen,” it said

Support Line 5/11/2015

REDTONE International hit a four-month high of 73 sen during intra-day session amid follow-through bargain hunting following the recent breakout. Apparently, the moving average convergence/divergence histogram continues to expand upward against the signal line, suggesting more scaling in the pipeline. A breach of the 75-sen barrier is likely to clear the way for the bulls to challenge the upper heavy resistance of 90-sen mark in the near term. Initial support is resting at the 70-sen line and an additional floor is pegged at the 100-day simple moving average of 67 sen.

THREE-A Resources shares reversed from an early three-month high of RM1.17 to finish a shade lower owing to an apparent profit-taking activity. In spite of the easier close, indicators still are positive. Based on the daily chart, prices are expected to face stiff challenges at the RM1.26 level, of which a clear penetration would give investors the confirmation that this stock is indeed on a new leg of uptrend, enroute to test the upper strong resistance of RM1.40. Initial support is seen at RM1.10 floor, followed closely by the RM1-RM1.03 band.

YONG Tai firmed towards the short-term descending line of 72 sen amid extended bargain hunting interest. Technically, all the short-term indicators, such as the stochastic, the 14-day relative strength index and the moving average convergence/divergence histogram are painting a pretty encouraging pictogram, implying a positive breakout may be on the cards. If successful, the medium-term target to look for would be the RM1.15 level, a heavy resistance level. Current support is seen at the 21-day simple moving average of 61.5 sen and strong floor is lying at the 58-sen mark.

http://www.thestar.com.my/Business/Business-News/2015/11/05/Support-Line/?style=biz