We continue to like Serba Dinamik as one of the key players in the oil & gas industry, backed by its sturdy orderbook comprising of dozens of jobs from local and overseas that will provide long-term earnings visibility, coupled with the group’s ongoing effort diversification into businesses that generates long-term recurring income.
Advancecon Holdings Bhd (Advancecon) is regarded as one of the leading players, having over 25 years of experience in provision of earthworks and civil engineering services to the local construction industry. The group has and currently undertaking several notable projects such as property related projects such as Setia Ecohill, Setia Eco Garden and Cyberjaya Flagship Zone and infrastructure transportation projects such as West Coast Expressway, Lekas Highway and Pan Borneo Highway.
We think that the pre-emptive move by Bank Negara may provide some support to the local market as investors shift their portfolio to alternative investments in search for higher yields. For now, a consolidation could be due following the recent stretch of rally that allows investors to digest the recent gains, while the renewed
volatility on Wall Street may permeates to stocks on Bursa Malaysia.
On a brighter note, the Vietnam operations were largely unaffected which may see the production of the reinforcement bar in Vietnam to US which may see shipment rising to approximately 600 tonnes by end-2020 from approximately 200 tonnes in 1Q2020. We see the improvement capitalizing from the US move to impose the antidumping taxes on threaded rods on countries like Thailand, Taiwan, India and China.
At RM1.22, Hexza trades at trailing-12 months (TTM) PE 16.0x, which is below its two-year historical average of 17.1x. Technically, the uptrend formation is established and price is attempting to form resistance breakout above RM1.23, targeting RM1.38-RM1.49.
The major contributor to the total warrants turnover last week were still the warrants over Malaysian shares which made up approximately 80.9%, with a total value traded of RM646.6mil, while warrants over the Hang Seng Index (HSI) came in second place
Between FY17-19, the residential projects segment was anchoring the revenue via contributing between 72.2-87.2% to the group’s revenue. In FY19, the residential projects segment accounts to RM279.4m, representing 77.9% of the group’s total revenue. Residential projects include construction of residential buildings such as terrace houses, bungalows, high rise apartments and condominiums.
We were surprised by corporate exercise as OCK has only completed the private placement to raise RM52.3m back in November 2019. Nevertheless, the impact would be miniscule considering the size of the cash call. The move would enable
OCK to improve bottom line by approximately 0.6% and 1.1% to RM33.1m and RM35.1m for FY20f and FY21f respectively on the back of the interest cost saving but at the expense of dilution in EPS.
After five consecutive days of winning streak, we think that upsides are still on the cards but will be restrained by the Covid-19 situation across the globe. Although the global economic recovery came in better-than-anticipated, investors will now shift their attention to the upcoming batch of corporate earnings in US to assess the impact of Covid-19.
The potential vaccine for Covid-19 provided a boost for global equities including
the FBM KLCI as investors pinned their hopes for normalcy. The positive
developments may attribute to the economy recovery towards pre-Covid-19 levels
in line with initial expectations by consensus. Hence, we see the key index to build
onto its gains, largely on track to snap a 3-week losing streak.
The warrants market saw a dip in the turnover for the week ended 26 June, falling 42.9% week-on-week (w-o-w) to RM392.2mil. Warrants over Malaysian shares again took up the majority of trading in the warrants space, making up 58.3% of
On Bursa Malaysia, we noticed that the drop of daily trading value below the RM3bn mark, suggesting that most of the retailers are back at work and the hype in the market is normalised for now. Here are some of