ADVCON

ADVCON

Postby winston » Tue Apr 09, 2019 9:15 am

not vested

Trading Buy: ADVCON - 5281
(Last price: RM0.430, Potential upside +32.6%)


Company Profile

ADVCON (listed in July 2017) is an established specialist contractor primarily involved in integrated earthwork and civil engineering services in Malaysia.


Trading Catalyst

We like ADVCON as it has built a reputation in earthworks jobs for blue chip property developers and has successfully diversified into infrastructure segment with two high profile projects i.e. the West Coast Expressway (WCE) and Pan Borneo Sarawak.

Valuation is cheap at 8.6x FY19E P/E (26% lower than its peers), supported by strong RM845m order book and RM1.6bn tender book coupled with more jobs in the pipelines from the potential revival of the shelved mega infrastructure projects such as the Klang Valley Double Track, ECRL and MRT 3.

Technically, the potential rounding bottom formation (with a strong breakout above YTD high/overhead resistance at RM0.46) could spur prices higher towards RM0.50-0.57 territory.

Technical View
Resistance: RM0.460 / RM0.500 / RM0.570
Support: RM0.410 / RM0.400
Cut loss: RM0.380

Key Financial Stats
Trading at 0.96x P/B and 8.6x FY19E P/E (26% lower than its peers)

Source: 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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Posts: 109486
Joined: Wed May 07, 2008 9:28 am

Re: ADVCON

Postby winston » Fri Sep 06, 2019 9:10 am

not vested

Trading Buy: ADVCON - 5281
Anticipate a stronger 2H19
(Last price: RM0.385, Potential upside +26.0%)

Company Profile

Advcon (listed in July 2017) is principally involved in the provision of earthworks and civil engineering services in Malaysia, as well as related support services such as sale of construction materials, hiring of machinery and ad-hoc general construction services.

In 1H19, the earthworks contributed 54% to revenue whilst the civil engineering services and support services contributed 34% and 12%, respectively


Trading Catalyst

We like ADVCON due to its established reputation in earthworks/civil engineering services for blue chip property developers and has successfully diversified into infrastructure segment with two high profile projects i.e. the West Coast Expressway (WCE) and Pan Borneo Sarawak.

Valuation are undemanding at 11.6x FY19E P/E (26% lower than its peers) and 0.82x P/B (34% lower than average 1.25x P/B since listed), supported by a strong RM794m order book and RM1.1bn tender book.

Moreover, the expected revival of the shelved mega infrastructure projects, including the Klang Valley Double Track, ECRL and Klang Valley MRT 3 as well as the allocation of some RM11bn for the construction of infrastructure related projects in Sarawak should present pipeline of job opportunities.

Technically, the impending bullish triangle breakout should spur prices higher towards RM0.41-0.485 territory.

Technical View
Resistance: RM0.410 / RM0.440 / RM0.485
Support: RM0.370 / RM0.360
Cut loss: RM0.350

Key Financial Stats
Trading at 11.6x FY19 P/E (-26% below peers) and 0.82x P/B (-34% below 1.25x average since listed).

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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Posts: 109486
Joined: Wed May 07, 2008 9:28 am

Re: ADVCON

Postby winston » Tue Jun 30, 2020 9:11 am

not vested

ADVCON (RM0.36-Not rated) may attract bargain hunting on any further fall as valuations become undemanding after sliding 24% from 52-week high at RM0.475.

A successful breakout above RM0.375 will lift share prices higher towards mid to long term RM0.41-0.475 levels.

Key supports are situated at RM0.33-0.345 while cut loss at RM0.32.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 109486
Joined: Wed May 07, 2008 9:28 am


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