Haily Group (0237) – Bullish Wedge Breakout

Recommendation: BUY
Target Prices: RM 0.88, RM 0.93
Stop Loss: RM 0.785
Entry Prices: RM 0.835 – RM 0.845
Broker: CGS-CIMB Securities
Date of Recommendation: 6th September 2024

Investment Thesis: Haily Group – Capitalizing on Construction Growth

Haily Group, a construction-focused company, has broken out of a 3-week wedge pattern, signaling strong bullish momentum. The stock is supported by improving EMAs and a golden cross on the MACD, indicating that the bulls are in charge.

• Technical Buy Signal:
  Haily Group’s stock bounced off the 20-day EMA on higher trading volume, confirming the wedge breakout. Both the MACD and RSI are turning upward, suggesting further price growth in the coming days.
• Key Support and Resistance Levels:
  Support levels are at RM 0.79 and RM 0.72, with resistance expected at RM 0.88 and RM 0.93.

Valuation and Financials:
Haily Group is trading at RM 0.845 and is expected to reach target prices of up to RM 0.93. The technical indicators show strong momentum, making it a favorable buy for investors.

Share Price Catalysts:

• Bullish wedge breakout and increasing trading volume.
• Positive developments in the construction industry.