not vested
Trading Buy: KUB-6874
(Last price: RM0.515, Potential upside +16.5%)
Company Profile
• KUB has a diverse range of businesses in Liquified Petroleum Gas (LPG), Agro, ICT, food, property, power, construction and engineering. Through an associate, the group also involved in sanitary landfill and waste management businesses.
Trading Catalyst
• Undemanding valuation at 10.3x trailing P/E (ex-RM0.10 cash, P/E is 8.3x).
• Starting to show tangible results since 2015, via its core businesses i.e. LPG, ICT and Agro coupled with its associate, cumulatively contributing on average 80-90% to the group PBT.
• Poised for a downtrend line breakout to retest 0.575-0.60.
Technical View
• Resistance: RM0.535 / RM0.575 / RM0.600
• Support: RM0.500 / RM0.485
• Cut loss: RM0.475
Key Financial Stats
• Trading at 10.3x trailing P/E(ex-cash 8.3x)
• Trading at 0.97x P/B
Source: Bloomberg, HLIB