We are confident that SGCM will do better in the subsequent quarters on the back of
i) gradual decline in resin cost, which makes up of 60%-65% of the company’s production cost ii) strategizing its product mix to focus on more high-margin plastic packaging products iii) continuous focus on the capturing of more bulk orders to beef up its utilization rate from 60% to 70%.
Maintain Trading Buy with an unchanged TP of RM1.82 based on multiple of 20x FY21 EPS.
SCGM was testing the RM1.63 level during its intraday high. With a rising RSI, it may move higher above this mark with a target price of RM1.70, followed by RM1.78.
Meanwhile, it may drift sideways if it fails to cross the RM1.63 mark in the near term. In this case, support is anticipated at RM1.49, whereby traders may exit on a breach to avoid the risk of a further correction.
Well, buying in intervals is easier than trying to guess the final drop. But of course take into account signals. Wait for nyse to turn positive. Malaysian will follow next morning.
"SLP Resources Berhad (SLP) is an investment holding company based in Malaysia. The company is involved in manufacturing, exporting and distribution of plastic packaging products and plastic related goods, as well as trading of polymer products such as plastic resins."
They are trading the plastic resins too...please think about that if the LLDPE price are low due to weak demand
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Michael Kwok
6,480 posts
Posted by Michael Kwok > 2019-12-10 12:34 | Report Abuse
PBB another time made recommendation after Me 24/9 recommend.Lol.
Michael Kwok TP Rm1.35-rm1.40(worst case scenario)
24/09/2019 3:48 PM