Dufu Technology Corporation Bhd (DUFU) specialised in the manufacturing of precision machining parts and components used across various industries such as hard disk drives (HDD), medical and office equipment, consumer electronics and telecommunications. Apart from their manufacturing plants at Penang, Malaysia, DUFU also has an established manufacturing plant in Guangzhou, China.

Overall, the sentiment has improved across the regional markets, which has helped the FBM KLCI to rebound from its 52-week low. Moreover, following the strong rebound on Wall Street overnight of over 2.0%, the local bourse may see further recovery supported by bargain hunting activities. We believe most of the sectors that have been bashed down earlier should gain traction at least for the near term. Nevertheless, investors are still weighing on the risk of recession arising from global inflation, hence traders may adopt a sell into strength strategy.

Following the latest win, KGB’s year-to-date orderbook replenishment now stood at approximately RM762.0m. Current orderbook replenishment meets 76.2% of our projected orderbook replenishment target of RM1.00bn for FY22f. Moving into final half of the year, we reckon that our projected orderbook replenishment is largely achievable, supported by the robust outlook within the semiconductor industry.

The FBM KLCI extended losses amid mixed performance on regional bourses amid global recession worries. However, we believe stocks on the local bourse are oversold and could be due for bargain hunting opportunities, but overall market sentiment should remain challenging in the near term on the back of prospect of few more rounds of rate hikes; thus, the rebound might be short-lived.

Established in 1989, Nova Wellness Group Berhad (NOVA) is now involved in the development and production of nutraceutical products under its house brand and for its OEM customers. Rising demand for nutraceutical products, coupled with NOVA’s ongoing expansion of distributor network and production capacity are expected to drive the house brand segment’s growth. We initiate coverage on NOVA with a BUY call and fair value of RM1.08, based on 14.0 P/E pegged to its forward FY23f EPS of 7.7 sen.

Pavilion Real Investment Trust (PAVREIT) is ranked as the largest Malaysia retail mall in terms of valuations with portfolio consist of Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Intermark Mall, Da Men Mall and Pavilion Tower.

The FBM KLCI extended its whipsaw moves on Friday in a broad sell-off amid growing worries on inflationary pressure and recession fears. As sentiment on Wall Street remained fragile following the mixed performance overnight, we foresee investors to remain cautious in the near future. Any of the rebound move is likely to be short-lived as traders might be adopting a selling-into-strength strategy for now. The head of NATO warned of a long Russia-Ukraine war, which may prolong inflation and further derail global economic recovery.

Kelington Group Bhd (KGB) wholly owned subsidiary, Kelington Technologies Sdn Bhd (KTSB), has entered into a construction contract with a Franco-Italian multinational electronics and semiconductors manufacturer to undertake the design, engineering and construction works on a new manufacturing building. The contract value at approximately RM114.0m will commence in June 2022 and is expected to be completed by December 2023.