HUAYANG - BULLISH PATTERN FORMING- POTENTIAL BREAKOUT !!!!! (PERSONAL TP FOR TRADING 0.49),
This company had been catching my attention today, HUA YANG BERHAD or
HUAYANG (Code 5062, MAIN BOARD, PROPERTY) due to the rising volume
interest and bullish chart formation, also coupled with its good
financial standings
WHY I THINK THIS STOCK IS UNDERLOOKED AND COULD HAVE GREAT POTENTIAL TO RISE FURTHER?
1. Technical Analysis - Possible Cup and Handle Breakout Towards TP 0.49
Refer below daily chart taken as of half day today.
We can see from September 2018 until today, it had started to form a
cup and handle shape with 0.43 as the main breakout point. I see a
potential breakout above this level soon, due to the following bullish
criterias:
a. MACD has crossed the signal and triggered a buy entry
b. Significant volume increase today towards 2 million units done
c. Stochastics in oversold position, and starting to trend back upwards indicating bullish buying in market
Next resistance should the price be able to break 0.43, is towards 0.49 which is my trading TP.
2. Financial Analysis - Improving Net Profit and High NTA
Refer below latest HUAYANG quarter report as of January 2019. Company
had registered a net profit of RM 5.772 million against revenue of RM
68.424 million, which is a 703% improvement compared to last year
corresponding quarter.
From the quarter report, it is noted that the reason for improvement as below:
(a) Property development : For the quarter under review, revenue and
profit before tax increased by 38% and 472% respectively as compared to
the previous financial year corresponding quarter. The improved results
were mainly driven by higher sales contribution from Astetica Residence,
Seri Kembangan and Bandar Universiti Seri Iskandar.
(b) Other Operations :Revenue and profit from other operations mainly
consist of rental income derived from the operation of commercial
properties under the "build, operate and transfer" concession with local
authorities and newly established franchising food and beverage outlet,
namely "Kluang Station" at One South.
Company NTA is also standing strong at RM 1.75.
CONCLUSION
Considering all the above, my personal trading TP for HUAYANG is set at RM 0.49
LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
Disclaimer : The above opinion is not a BUY CALL but only sharing my observations.
BURSAMASTER
https://klse.i3investor.com/blogs/Bursa_Master/202917.jsp
