Its been a long holiday for everyone that celebrate raya. Time to get work back today. As market is still low volume, we expecting tomorrow volume will pick up soon as some of them might take off today. Today is a great day for us as we manage to detect a great theme even market is superb weak. Technology theme ongoing today such as FPGROUP, KRONO, AEMULUS, TECFAST & DATAPRP. Time to see some undervalued stocks today. Its been a long time we didn't find out counters that are undervalued because mostly companies can't perform due to many reasons. Check out our telegram channel. https://telegram.me/stockalliance/ the largest telegram channel related with bursa malaysia in Malaysia.
FPGROUP from 0.23 to 0.345 amazing return.
KRONO thank god today 0.605 to 0.645 even in weak market like that.
AEMULUS 0.37 to 0.40 more than enough.
DATAPRP 0.22 to 0.26
OCNCASH
Fundamental Analysis
Oceancash Picific is primarily involved in the manufacture of felts and non-woven fabrics. Their major customers are from JAPAN, Malaysia, Thailand, Indonesia and others. OCNCASH business mainly contributed by automotive and air conditioning industry More than 80% of the group's non-wovens are exported to more than 10 counteries.
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OCNCASH as you can see we can see the momentum for the growth starting to catch up soon. Expecting next quarter will be better as ringgit weaken further towards RM4.00. As their sales in Japanese market are denominated in USD. This quarter we can see that higher sales contributed by Thailand and Malaysia market. Moreover, we forsee that next quarter will be better because OCNCASH is boosting up their felt and hygiene sales to both car manufactureres and hygiene application sector in Thailand. Besides, automotive sector will be driven up due to GST exemption. This is the key that might drive OCNCASH even better because previously automotive sector in Malaysia might not be excited and slow growth. With GST exemption, it wil drive up the sales for OCNCASH. As a result, expecting a growth of EPS 2.50 next quarter. Moreoever, with P/E 10 We able to see OCNCASH to achieve 1.00 in future.
One more interesting point is that this company going to transfer to mainboard. This will even attract more investors to look into this kind of growth company. Do not forget that companies like OCNCASH in bursa malaysia is very less. It will be one of the target for institutional investor if this company continue to grow as like what we said. If you notice the company is expecting to complete their transfer by second quarter of 2018. Thats mean the news is coming out very soon with the the stock trending now. Expecting to have a run before it transfers to mainboard.
Besides, from the prospect for year 2018 in the report. They stated that their company will perform better than FY17. Thats mean we will see a growth coming for this company.
Technical Analysis
Based on Technical Analysis, As you can see the momentum rebounded from low 0.4x towards 0.655 now. We are expecting to have a strong breakout against 0.67 tomorrow with that we will see 0.70 first stage. Don't forget this trending similar with our N2N fly from 0.80 to 1.25. Today strong volume too as it regain from red 0.635 to 0.655. Tomorrow possible to see a gap up or volatile day for this star as we expecting more rally coming for this.
Based on the points we highlighted, a few supportive strong points such as transfering to mainboard, GST 0% drive up the sales for automotive sector, ringgit strengthen towards 4.00. Technical View looking superb strong to breakout from 0.67 level tomorrow. Hopefully more news will come out soon for this company. Mark our word that it will like our CCK or LEESK that gave more than 100% to 200%. Thank you for supporting us. Fundamental Analysis view expecting 1.00 in mid/long term. Technical view must breakout from 0.67 then we will see 0.70. Slow and steady we will see a superb long and sustainable run in future.
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