Key Indices
Top Stories
Company Results | Eco-Shop Marketing (ECOSHOP MK/HOLD/RM1.42/Target: RM1.50)
- Earnings are below expectations off largely softened gross margins, which arose from unfavourable forex and a disrupted supply chain. SSSG turned positive after multiple quarters of contraction but has since softened marginally again. Downgrade to HOLD on Eco-Shop as valuations no longer appear compelling following our trimmed earnings. Target price lowered to RM1.50 (from RM1.60).
What’s Inside
Company Update | Matrix Concepts Holdings (MCH MK/BUY/RM0.98/Target: RM1.72)
- Matrix proposed to acquire 432 acres in Kulai, Johor, for RM169m, with an estimated GDV of RM2.1b. The industrial-led development will initially target local industrial players before MNCs, with management guiding for healthy net margins of 20%. Despite the acquisition, MVV loan repayments should support deleveraging over the next 12-18 months. Management intends to maintain its 50% dividend payout. Maintain BUY with an unchanged target price of RM1.72, offering an attractive FY27 yield of 7.2%.
Market Spotlight
- The FBMKLCI rose 7.49pt (+0.47%) to close at 1,611.85 yesterday, in a technical rebound after a few consecutive days of losses.
- US stocks were higher after the close on Tuesday, as gains in the basic materials, technology and telecoms sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Awanbiru Technology | AWTC MK
- Trading Buy Range: RM0.255-0.26
Betamek | BETA MK
- Trading Buy Range: RM0.68-0.685
HSS Engineers | HSS MK
- Trading Buy Range: RM0.485-0.49
Top Stories
Company Results | Eco-Shop Marketing (ECOSHOP MK/HOLD/RM1.42/Target: RM1.50)
- Earnings are below expectations off largely softened gross margins, which arose from unfavourable forex and a disrupted supply chain. SSSG turned positive after multiple quarters of contraction but has since softened marginally again. Downgrade to HOLD on Eco-Shop as valuations no longer appear compelling following our trimmed earnings. Target price lowered to RM1.50 (from RM1.60).
What’s Inside
Company Update | Matrix Concepts Holdings (MCH MK/BUY/RM0.98/Target: RM1.72)
- Matrix proposed to acquire 432 acres in Kulai, Johor, for RM169m, with an estimated GDV of RM2.1b. The industrial-led development will initially target local industrial players before MNCs, with management guiding for healthy net margins of 20%. Despite the acquisition, MVV loan repayments should support deleveraging over the next 12-18 months. Management intends to maintain its 50% dividend payout. Maintain BUY with an unchanged target price of RM1.72, offering an attractive FY27 yield of 7.2%.
Market Spotlight
- The FBMKLCI rose 7.49pt (+0.47%) to close at 1,611.85 yesterday, in a technical rebound after a few consecutive days of losses.
- US stocks were higher after the close on Tuesday, as gains in the basic materials, technology and telecoms sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Awanbiru Technology | AWTC MK
- Trading Buy Range: RM0.255-0.26
Betamek | BETA MK
- Trading Buy Range: RM0.68-0.685
HSS Engineers | HSS MK
- Trading Buy Range: RM0.485-0.49
Key Indices
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