not vested
Trading Buy: PANTECH-5125
(Last price: RM0.655, Potential upside +19.1%)
Company Profile
• PANTECH (listed in Feb 07), is primarily engaged in the business of manufacturing and trading of pipes, valves and fittings (PVF) as well as hot-dip galvanising process.
Trading Catalyst
• A dominant player in PVF market with a 40% share.
• Anticipate robust earnings growth in FY17-19 amid growing order flows from Rapid and strong recovery in oil prices coupled with resilient orders from diversified sectors.
• High barrier to entry as a 1-stop pipes, fittings and flow controls (PFFs) solutions provider, carrying ~30k inventory items.
• Potential triangle breakout, targeting RM0.70-0.78 levels.
Technical View
• Resistance: RM0.700 / RM0.740 / RM0.780
• Support: RM0.630 / RM0.620
• Cut loss: RM0.605
Key Financial Stats
• Trading at 10x FY18 P/E, supported by 38% EPS CAGR FY17-19
• Decent 3.8-4.5% DY for FY18-19
Source: Bloomberg, HLIB