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