Recently I had spotted this small cap company; an investment grade, which have been underlooked and undercovered - OCR GROUP BERHAD or OCR (Stock Code 7071, listed on MAIN BOARD, CONSTRUCTION)
I
noticed considerable interest starts to build in on Friday where the
price had retraced to a low of 0.30 but managed to recover and closed
high at 0.315 on the back of 940K volume.
This
positive momentum & enthusiasm, I believe, should carry forward
next week ( forbearing instances of the adversity/ negativity of the
regional markets sentiment affecting Bursa Malaysia) since it was able
to close Friday conclusively at 0.315. I foresee it trending to the next resistance of 0.37 before heading to my personal TP at 0.43.
OCR-WD : Can also be considered as it is currently trading at 0.085; a discount of 3.17%
OCR-WD : Can also be considered as it is currently trading at 0.085; a discount of 3.17%
WHY I THINK THIS STOCK IS UNDERLOOKED AND COULD HAVE GREAT POTENTIAL TO RISE FURTHER?
1. TECHNICAL ANALYSIS - Strong Support on Uptrend Retracement
Refer to below image on OCR daily chart. Recently it had seen strong
buying activity with big volume surge, pushing the price to a high of
0.37.
Now it is in retracement mode towards the uptrend support of around
0.30. Sellers volume is seen reducing hence I see a best entry around
this area of 0.30 - 0.31. Should momentum be strong, the price should be
able to resume its upward trajectory towards the recent high of 0.37,
before testing resistance of 0.43.
2. Business Outlook (PROPERTY DEVELOPMENT) - 7 Major Ongoing Projects with GDV RM 1.825 billion
Refer below below link of recently posted OCR 2018 Annual Report.
Following
the Group’s diversification into the property development business in
2016, OCR has been vigorously growing this division and is on the
lookout for prime land banks as target for acquisition.
As
of February 2019, OCR has 2 on-going projects and 5 projects in the
pipeline in the Klang Valley, Pahang, Melaka, and Johor with a combined
GDV of RM1.825 billion.
Going forward, OCR expects the division to contribute positively to the Group and shall continue to be a key revenue driver.
The list of projects as below :
ONGOING
1. Isola @ KLCC - 4 Residential Blocks - GDV RM 273 million
2. PRIYA scheme, Kuantan - mixed development - GDV RM 166 million
IN THE PIPELINE
3. Kuantan project - mixed development - GDV RM 268 million
4. Melaka project - mixed development - GDV RM 184 million
5. Tropicana project - retails outlet and hotel suit - GDV 144 million
6. Tiara Bangi Homes Project - residential properties - GDV RM 90 million
7. Bandar Dato' Onn project - mixed development - GDV RM 700 million
3. Business Outlook (CONSTRUCTION) - 3 Major Ongoing Projects with Contract Value RM 352.4 million
OCR has 3 projects in hand as below:
1. PRIMA Sri Gading - residential units - RM 101 million
2. PRIMA Bukit Jalil - residential units - RM 155 million
3. YOLO - 41 storey commercial building - RM 96.4 million
CONCLUSION
Considering all the above, my personal TP for OCR is set at RM 0.43.
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/205971.jsp
