Looks like flag pattern formation breakout..go in too late and your profits will be less..Thheavy as we all know is a stock now worth at least 22 cents...so catch the boat before it's too late ;)
KUCHING: Despite the current volatile market condition, analysts believe that Vivocom International Holdings Bhd (Vivocom) provides a compelling risk/reward profile with a fundamental upside. The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said amidst the clamour of the volatile market, Vivocom presents a compelling risk/reward profile with fundamental upside supported by robust current orderbook of RM3.3 billion. It also pointed out that the continuous expansion in its orderbook of RM3.3 billion coupled with improving balance sheet would potentially translate into positive earnings accretion for the financial year 2016 (FY16) and FY17. “Currently, its orderbook has expanded from RM2.4 billion in the fourth quarter of 2015 (4Q15) to RM3.3 billion – an increase of 37.5 per cent. “Going forward, we estimate that its orderbook will grow further from RM3.3 billion to RM3.9 billion by 4QFY16 (an increase of 18 per cent) on the back of 36 months backlog. We are forecasting Vivocom to win circa RM950 million of jobs for FY16 estimate,” it said. As a result of orderbook expansion, the research team noted that the earnings are slated to grow 5.5-folds of its current levels in FY16F/FY17F. “Additionally, Vivocom’s sustainable margins of circa 10 per cent will be achievable due to its less capital intensive construction contracts, viz project delivery partner and sub-contracting, through larger China-based contractors such as China Railways Construction Corporation (CRCC) and China Nuclear Industry Huaxing Construction Company Ltd (CNH). “Its current cash level of RM23 million gives ample financial headroom to increase its mobilisation into sizeable projects that it has tendered such as in Kinta Valley and Tronoh, Perak,” it explained. The research team also viewed Vivocom’s joint venture with CNH as beneficial for the company’s growth. It noted, the joint-venture with CNH is another strong catalyst for Vivocom due to the speedier and reliable decision making process. “CNH is listed in the Shanghai Stock Exchange and its decision making is through the appointed management. Hence CNH’s decision is arguably speedier than CRCC as it has less reliance on the state to make decisions for projects roll-out thus giving certainty to its decision making process. “Our channel checks indicated that CNH has strong working relationship with China Exim Bank and Industrial and Commercial Bank of China (ICBC) as it has the track record of successfully completed the construction of Global Innovation Centre of Johnson
rafizi don't want to make noise this time? then can hope price recover. haha
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Posted by ktlum84 > 2016-09-02 10:13 | Report Abuse
MBSB trending now and momentum very strong!