UZMA has surged above the EMA120 level with mild volumes yesterday. The MACD Histogram extended another green bar, while the RSI is hovering near 50. Monitor for a breakout above the RM2.52 level, targeting the RM3.00-RM3.15 levels. Support will be set around the RM2.19 level.
UZMA has been trading above its upward sloping 20-Day Moving Average which is a good sign. However the upward movement has encountered resistance at the level of 2.45. Traders should pay special attention to the price and volume behavior in order to determine whether this resistance level can be broken decisively for UZMA to resume its upward movement. The indicator analysis on RSI is not exhibiting any extreme condition. Watch out for the 30% and 70% levels which indicate any oversold and overbought condition respectively
UZMA - 1Q Result: Inline Author: kltrader | Publish date: Tue, 26 May 2015, 10:43 AM
Results
Inline: YoY, 1QFY15 core profit surged by 56%, making up 22% of HLIB and consensus full-year estimates respectively. Deviation
We have strip off one-off items of RM5.1m forex loss in 1QFY15 and expect stronger 2H due to contribution from RSC contract. Highlights
1QFY15 core profit (excluded forex loss of RM5.1m) surged by 56% YoY due to higher cont ribution from drilling project management for PMU wells, maiden contribution from MMSVS and PEC coupled with higher income from its associate, SVP. In the meantime, Uzma’s 40% associate, S azma A viation also announced to secure RM167m worth of contract to provide helicopter services for Petronas. We are impressed with the company’s ability to replenish its contract backlog despite sluggish oil price. Drilling campaign for Tanjung Baram is expected to begin in 1Q15 and to hit first oil in May 15. Substantial portion of the US$100m development cost by the JV will be contracted to Uzma. New marginal oilfield project is not viable at current oil price and we have not factored in any new RSC win in our earnings. Near term industry outlook remain cautious as we expect oil price to continue to remained weak for next few months given the oversupply issue will only adjusted if there is any reduction from US shale’s produc tion. However, Uzma’s exposure to E&P opex instead of capex spending should help it to weather through this challenging period. Risks
Delays in contract disbursement. Execution risk. Forecasts
Unchanged. Rating
BUY () Positives
Di rect exposure to EOR and exploration spending. Negatives
Small cap with low liquidity and plunged in oil price. Valuation
We maintained our BUY call with unchanged TP of RM2.69 based on unchanged 11x FY16 P/E. Source: Hong Leong Investment Bank Research - 26 May 2015
2 reports on MMSVS each by publicinvest and kenanga, 2 conflicting informations.. one said, uzma has 10 units of HWU, the other said 9.. one reported it has 500 million order book, the other said it's 500 million bid book.. and both visited the same plant on the same day..
MMSVS is a company domiciled in thailand which owns 8 units of HWU. Uzma bought the company last year for about 95 million ringgit to expand its drilling services.
One of very few gems in a bearish market...holding on well despite rout in O&G sectors...pls come down lower just like others and I will be with u again...RM1-30 again, perhaps?
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supernova
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Posted by supernova > 2015-05-14 10:55 | Report Abuse
uzma performing these 2 days, but too premium to stake, how.