Chin Hin

Chin Hin

Postby winston » Fri Feb 07, 2020 10:25 am

not vested

Trading Buy: CHINHIN - 5273
Cheaper proxy to solar theme?
(Last price: RM0.600, Potential upside +15.0%)


Company Profile

CHIN HIN Group involved in the distribution of building materials and provision of logistics, supply of ready-mixed concrete and manufacturing of Autoclaved-aerated concrete AAC, precast concrete products, wire mesh and metal roofing.


Trading Catalyst

We like CHINHIN for its
(i) recovering net profit over the past 3 quarters,
(ii) attractive valuation of 13.3x PE (26.5% below its 2Y historical average of 18.1x),
(iii) solid FY18-20f net profit CAGR of 30.7%.

Also, its 34% shareholdings in Solarvest may translate to a potential earnings boost moving forward.

Technically, it is oversold after the recent selldown and our indicator is suggesting that CHINHIN is warrant for a technical rebound in the near term. Resistance is set around RM0.64-0.66, followed by a LT TP of RM0.69. Support is pegged around RM0.54-0.555, while stop loss is set around RM0.53.

Technical View
Resistance: RM0.640 / RM0.660 / RM0.690
Support: RM0.555 / RM0.545
Cut loss: RM0.540

Key Financial Stats
Solid 30.7% FY18-20f net profit CAGR
DY of 4.2%

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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