not vested
Trading Buy: ROHAS-9741
(Last price: RM1.34, Potential upside +17.9%)
Company Profile
• Rohas Tecnic Berhad (Rohas) was formed after Rohas-Euco Industries Sdn Bhd (REI) underwent a reverse takeover of Tecnic Group Berhad in Mar 2017. The group is involved in the fabrication of steel towers used for power transmission and telecommunications industries. It also provides galvanising services, fabrication of electrical substation structures and EPCC works.
Trading Catalyst
• HLIB has a BUY rating with institutional TP of RM1.74, or 29.9% upside, supported by a robust 30% FY17-19 EPS CAGR.
• We like Rohas for its exposure to ASEAN which is one of the fastest growing economic regions in the world. Infrastructure investment needs are expected to be robust in the foreseeable future and this will generate steady demand, which will double its job replenishment this year to c.RM800m
• Building base near RM1.27-1.30 before the next upleg towards RM1.40-1.58.
Technical View
• Resistance: RM1.40 / RM1.52 / RM1.58
• Support: RM1.30 / RM1.27
• Cut loss: RM1.25
Key Financial Stats
• Trading at 11.3x FY19 P/E
Source: Bloomberg, HLIB