Comprehensive Analysis of Malaysia’s Trending Stocks

CGS International Report | December 10, 2024

Introduction

The latest report by CGS International provides an in-depth analysis of several prominent Malaysian companies, highlighting their stock performance, potential growth, and strategic market positioning. This comprehensive overview caters to investors keen on leveraging market trends for informed decision-making.

Southern Score Builders (0045)

Technical Buy Recommendation

Southern Score Builders Berhad, a construction management company, is currently positioned for a bullish break to the upside. The stock has shown a promising bounce off its four-month consolidation, closing at a four-month high with increased trading volume. The company specializes in real estate construction, civil works including roads and drainage, water reticulation, and sewerage works in Malaysia.

Indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) suggest strengthening buyer interest. Aggressive traders are encouraged to consider long positions with an entry price between RM0.60 and RM0.625, targeting RM0.655 and RM0.70, while maintaining a stop-loss at RM0.575.

SkyWorld Development (5315)

Technical Buy Recommendation

SkyWorld Development Berhad, a real estate developer, continues its rally, supported by a breakout from its three-week triangle consolidation. The stock remains above its 200-day EMA, indicating a bullish outlook. With a focus on residential and commercial properties, SkyWorld Development serves a diverse clientele across Malaysia.

With MACD and RSI indicators showing bullish momentum, the stock is poised to test historical resistance levels at RM0.655 and RM0.695. Traders are advised to go long within the entry range of RM0.60-0.625, with a stop-loss at RM0.575.

Hong Leong Bank

Maintain Add with a Target Price of RM31.40

Hong Leong Bank (HLB) is strategically positioned to maintain its current Net Interest Margin (NIM) levels in 2QFY25F, despite increased competition in deposits towards year-end. The bank plans to review its management overlay, potentially leading to write-backs. HLB is favored for its robust loan growth and rapid expansion of contributions from its associate, Bank of Chengdu.

The bank remains a top pick within the sector, reflecting its above-industry performance and strategic growth initiatives.

Dialog Group Bhd

Maintain Add with a Target Price of RM2.61

Dialog Group Bhd is anticipated to reveal significant positive newsflows soon, bolstering its market position. The company continues to focus on enhancing its operational capabilities and expanding its market reach to drive growth.

Investors are advised to maintain their positions in anticipation of favorable developments that could enhance the company’s valuation in the near future.

Conclusion

This comprehensive analysis by CGS International underscores the strategic positioning and market potential of key Malaysian companies. Investors are encouraged to leverage this detailed insight to make informed investment decisions, aligning with market trends and company-specific developments.