not vested
On stock selection, after plunging 48.3% from an all-time high of RM0.60 (5 Aug) to a low of RM0.31 (12 Aug), ASIAPLY (RM0.43, Not-rated) will be attractive to bargain on any price weakness towards the 0.39 (uptrend line support) and RM0.41 (30D SMA) supports levels.
A successful breakout above mid BB at RM0.45 will spur prices higher towards RM0.49 (61.8% FR) and our LT objective of RM0.53 (76.4% FR) levels. Cut loss at RM0.38.
To recap, the group is engaged in the manufacturing of cast acrylic sheets. In the wake of the Covid-19 pandemic, acrylic sheets are widely installed in shops, restaurants, offices, hospitals, and other common spaces to prevent virus transmissions and social distancing purposes.
In its 2Q20 results review, management is confident that FY2020 will be a strong growth year following promising orders from new customers from the USA and Europe (due to trade diversion from China to Malaysia).
Source; HLIB