RSI & MACD showing uptrend.
All Pwrwell needs now is one big volume and break the resistance of 0.27.
If the resistance broke, it will fly to 0.29 and 0.33.
If you buy at the support 0.235, the upside & risk rewards is very good.
If you're goreng construction theme, and forgot this GEM..You will be missed this golden opportunity.
Lets recap what is Pwrwell actually doing.
Improving demand for electricity distribution products boosted by increasing construction activities in FY2020 bodes well for Powerwell Holdings Bhd (“PWRWELL”). PWRWELL
is making its debut on the ACE Market today and we recommend a BUY with
a target price of RM0.33 based on 14.4x PER FY20 as per the Bursa
Malaysia Industrial Production Index.
PWRWELL is primarily involved in the design, manufacturing and trading
of electricity distribution products, comprising of low voltage (“LV”)
switchboards, medium voltage (“MV”) switchgears and related products.
With over 25 years of experience, PWRWELL is wellrecognised supplying to
main contractors, mechanical and electrical players, EPCC companies for
various developments. Bulk of the revenue (~58% in FY18) is derived
from Malaysia along with strong presence in regional markets such as
Vietnam, Bangladesh and Indonesia. PWRWELL is the authorised partner
with Siemens and Schneider in manufacturing and selling switchboard and
switchgear products.
47% or RM10.3m of the IPO proceeds will be utilised for capital
expenditure to purchase and upgrade machinery and equipment in addition
to enhance enterprise resource planning system and hardware. PWRWELL
also intends to develop its own “Powerwell” branded MV switchgear where
the initial preparation has started in May 2018. To increase competency,
RM3.9m is allocated for certification expenditure to obtain
International Electrotechnical Commission standards-compliant
certifications on additional products including the “Powerwell” branded
MV switchgear.
Meanwhile, RM3.6m will be used for working capital while the remaining
is for listing expenses. Management plans to expand their business into
refurbishment projects as they see opportunities arise from the segment
in present Malaysia Market.
As at 30 Sept 2019, the group has an orderbook of RM52.8m to be
recognised in 24 months. Balance sheet is healthy with net cash of
RM13.8m. Moving forward, we expect PWRWELL’s earnings to be supported by
gradual enhancement of local construction activities which will in turn increase the demand for electricity distribution products.
https://klse.i3investor.com/blogs/xiaoqing88/2020-04-23-story-h1506102073-PWRWELL_0217_Construction_Resumes_With_Safety_Measures.jsp
