HSSEB

HSSEB

Postby winston » Wed May 15, 2019 8:53 am

not vested

Trading Buy: HSSEB - 0185
(Last price: RM1.06, Potential upside +21.7%)

Company Profile
HSSEB (listed in Apr 2016) is principally involved in the provision of engineering and project management services including engineering design, construction supervision, project management, environmental services and building information modelling (BIM) services.

Trading Catalyst

We like HSSEB’s exposure to a wide array of domestic infrastructure segments, riding on the pump-priming projects in Malaysia and the ASEAN as major energizing force for growth that are impervious to heightened trade war tensions and decelerating global economy.

Valuation is undemanding at 17.5x FY20 P/E (22.4% below its average P/E of 22.5x since listing), supported by RM546m order book (sustainable for 2-3 years) and a strong 27% EPS CAGR from FY18-21.

Yesterday’s bullish engulfing candle provides an impetus for HSSEB to break above the flag resistance in the short term, opening the door for a retest of the 52W high of RM1.29.

Technical View
Resistance: RM1.11 / RM1.15 / RM1.29
Support: RM1.00 / RM0.975
Cut loss: RM0.960

Key Financial Stats
Trading at 17.5x FY20E P/E (22.4% below 22.5x since listing), supported by a strong 27% EPS CAGR from FY18-21.

Source: HLB
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: 106934
Joined: Wed May 07, 2008 9:28 am

Re: HSSEB

Postby winston » Wed Aug 07, 2019 10:29 am

not vested

Technical Tracker - HLIB Retail Research
Trading Buy: HSSEB-0185
Values emerge after recent sell down
(Last price: RM0.930, Potential upside +20.4%)


Company Profile

HSSEB (listed in Apr 2016) is principally involved in the provision of engineering and project management services including engineering design (ED), construction supervision (CS), project management (PM), environmental services and builging information modeling (BIM) services.

In FY18, the ED, CS and PM contributed 35.3%, 34.9% and 24.2% to the group revenue, respectively whilst the remaining 5.6% came from BIM & others businesses.


Trading Catalyst

Ahead of 2Q19 results next week, HSSEB’s prices slid 21.8% from one month high of RM1.19 to RM0.93 yesterday, tracking external markets headwinds and concerns over slower progress billings due to project delays.

We like HSSEB’s exposure to a wide array of domestic infrastructure segments, riding on the potential mega projects revival in Malaysia and the ASEAN as major energising force for growth that are impervious to burgeoning trade war tensions.

We believe HSSEB will be the first to benefit given requirements to appoint engineering consultants to design and conduct feasibility studies on infrastructure projects before they are implemented.

Valuation is not expensive at 18.4x FY20 P/E (31% below its 2Y average 27x P/E), supported by RM558m order book (sustainable for minimum 2 years). Technically, the stock is ripe for an oversold rebound towards RM0.98-1.12 after a brief sideways consolidation.

Technical View
Resistance: RM0.980 / RM1.03 / RM1.12
Support: RM0.910 / RM0.900
Cut loss: RM0.870

Key Financial Stats
Trading at 18.4x FY20E (31% below its 2Y mean of 27x)

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
Billionaire Boss
 
Posts: 106934
Joined: Wed May 07, 2008 9:28 am


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