Introduction

In the latest edition of Malaysia’s Retail Research by CGS International, the focus is on a range of companies with potential investment opportunities. This comprehensive analysis provides an in-depth look at the current market trends and offers technical insights into several companies.

Sime Darby Property (5288) – A New Short-Term Uptrend

Sime Darby Property is showing promising signs of a new short-term uptrend. The company’s stock price recently broke out of a 4-month long triangle pattern, closing above the golden cross of the 20-day over 50-day EMAs. This breakout is supported by higher trading volumes, signaling that higher prices are likely to follow.

The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are strengthening, indicating a build-up in buyer strength. The technical analysis suggests aggressive traders might consider going long with a stop-loss set at RM1.33. The stock has potential upside targets at RM1.56 and RM1.67.

Sime Darby Property offers property development and investment services, catering to the hospitality and leisure industries in Malaysia.

Mi Technovation Berhad (5286) – Resuming a Longer-Term Uptrend

Mi Technovation Berhad is on a path to resume its longer-term uptrend. Following a successful breakout of a 3-month-long triangle pattern, the stock continues its rally supported by higher trading volumes. The MACD and RSI are both positive, suggesting bullish momentum.

Technical analysis suggests that aggressive traders might consider entering positions with a stop-loss at RM1.98. The next resistance levels are at RM2.28 and RM2.39, which may be tested soon.

Mi Technovation operates as a holding company, designing, developing, and manufacturing wafer level chip scale packaging sorting machines and related spare parts for the semiconductor industry, serving customers in Asia and the United States.

Hibiscus Petroleum Bhd – Long-Term Rerating Potential

Hibiscus Petroleum Bhd is poised for a long-term rerating as multiple projects are expected to drive future growth. The company’s share price has already adjusted for macro risks, discounting long-term Brent oil prices below US\$60/bbl, compared to the current price of over US\$70/bbl.

Key catalysts for a rerating include the potential extension of the PM3 CAA PSC tenure and ongoing projects aimed at increasing production in North Sabah and Teal West. The recommendation is an “Add,” with a DCF-based target price of RM2.81 for the end of CY25F.

Bank Islam Malaysia Bhd – Financing Growth Prospects

Bank Islam Malaysia Bhd is expected to see growth in financing in the fourth quarter of 2024. The bank maintains an “Add” recommendation with a higher target price of RM3.13. The anticipation of increased financing activity suggests a positive outlook for the bank.

RHB Bank Bhd – Navigating a Downcycle

RHB Bank Bhd is navigating through a downcycle in loan loss provisions (LLP). Despite this, the bank holds an “Add” recommendation with a higher target price of RM7.25. The bank’s strategic positioning and management of LLP are key to its continued performance.

Conclusion

This report from CGS International provides a detailed analysis of several key players in the Malaysian market, offering insights into potential investment opportunities and market trends. Investors are encouraged to consider these evaluations as part of their broader investment strategies.