not vested
Trading Buy: BAHVEST-0098
(Last price: RM0.620, Potential upside +19.4%)
Company Profile
Bahvest is mainly engaged in fish breeding, hatchery, rearing and gold mining operations
Trading Catalyst
If executed well, Bahvest is expected to stage an explosive 359% FY19-21 EPS CAGR surge to consensus FY21 EPS of 6.4sen (FY19 0.3sen), mainly driven by the booming mining business (replacing the weakening aquaculture operations amid intense competitions from China producers).
Moreover, Bahvest is a direct proxy to the more promising gold outlook as investors are now returning to the traditional safe haven, thanks to the protracted US-China trade war, rising geopolitcal tensions, heightened fears of a global downturn coupled with sliding bond yields amid growing expectations for a Fed rate cut in 2H19.
Valuation is undemanding at 15.9x FY3/20 P/E, 69.5% lower than 2Y average of 52.1x. Technically, the stock is ripe for a downtrend resistance breakout near RM0.645, before advancing further towards RM0.665-0.74 zones.
Technical View
Resistance: RM0.645 / RM0.665 / RM0.740
Support: RM0.600 / RM0.580
Cut loss: RM0.575
Key Financial Stats
Trading at 15.9x FY20E P/E, supported by an explosive 395% FY19-21 EPS CAGR
Source: Bloomberg, HLIB