NADIBHD

[winston]

not vested

Trading Buy: NADIBHD - 0202
(Last price: RM0.260, Potential upside +19.2%)


Company Profile

NADIBHD (listed in Jan 2019 at IPO price of RM0.31) is principally involved in:
i) building construction
ii) provision of facility management services of student hostels and related facilities
iii) operations of a district cooling system for the supply of chilled water and
iv) property development.


Trading Catalyst

Following a 16% correction from YTD high of RM0.31 to RM0.26 yesterday, NADIBHD provides an attractive risk-reward profile at 5.8x FY19E P/E (14% lower against peers) and 0.46x P/B (66% discount against peers), underpinned by its unique integrated business model (i.e. construction, facility management, utilities and property development divisions

NADIBHD is expected to enjoy a steady earnings growth supported by over RM700m construction order book and concessions fair values of more than RM600m, cheap valuations and decent dividend yield.

Technically, the stock is poised to retest RM0.27-0.31 upside targets following recent positive triangle breakout.


Technical View
Resistance: RM0.270 / RM0.290 / RM0.310
Support: RM0.250 / RM0.245
Cut loss: RM0.240

Key Financial Stats
Trading at 5.8x FY19E P/E (14% lower against peers) and 0.46x P/B (66% discount against peers),

Source: Bloomberg, HLIB