Rohas

Rohas

Postby winston » Wed Mar 21, 2018 8:34 am

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
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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Re: Rohas

Postby winston » Mon Jul 16, 2018 8:49 am

not vested

Trading Buy: ROHAS-9741
(Last price: RM1.14, Potential upside +27.2%)

Company Profile
• Rohas is principally involved in the fabrication of steel towers for power transmission and telecommunications industry, having amassed over 30 years of experience. It has also branched out into the EPCC role for power, telecommunications, water and steel fabrication industries.

Trading Catalyst

• As the existing core business are not affected by change in government, we believe ROHAS’s rout (-24% YTD and 28% off historical peak on 9 Jan) as overdone.

• Values emerge after recent selloff with undemanding 9.6x FY19 P/E (26% lower than 1Y historical P/E of 13x), supported by a strong EPCC orderbook of RM680m and 21% EPS CAGR for FY17-20, riding on the tower boom and infrastructure heat in the ASEAN region.

• Potential downtrend reversal amid hammer pattern with medium to LT upside targets at RM1.30-1.45.

Technical View
• Resistance: RM1.21 / RM1.30 / RM1.45
• Support: RM1.09 / RM1.03
• Cut loss: RM1.02

Key Financial Stats
• Trading at 9.6x FY19E with 21% FY17-20 EPS CAGR.

Source: 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
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Re: Rohas

Postby winston » Thu Feb 21, 2019 8:56 am

not vested

Trading Buy: ROHAS - 9741
(Last price: RM0.620, Potential upside +29.0%)

Company Profile
• Rohas offers manufacturing and EPCC contracts services for power, telecommunications, water and steel fabrication industries in the ASEAN markets.

Trading Catalyst
• Post 3Q18 results, Rohas share prices slid 31% from RM0.90 to RM0.62 yesterday. We expect share prices to grind higher in anticipation of a positive 4Q18 results and stable FY19-20 outlook, underpinned by continuous infrastructure investment in the ASEAN.
• Rohas EPCC order book currently stood at ~RM450m, representing c.3.5x cover ratio of their FY17 EPCC revenue, providing a strong boost to earnings growth for the next 2 years. Besides, the company is targeting for order book replenishment of RM500m this year.
• Rohas valuations are undemanding at 7.1x FY19 P/E (15% lower to peer) or 0.94x P/B (34% lower to peer), supported by a resilient 9% FY18-20 EPS CAGR and 8.5sen net cash/ share (which allows continued decent dividends).
• The recent downtrend line breakout could lift prices towards RM0.72-0.80 territories.

Technical View
• Resistance: RM0.670 / RM0.720 / RM0.800
• Support: RM0.600 / RM0.550
• Cut loss: RM0.540

Key Financial Stats
• Trading at 7.1x FY19E (Ex-cash 6.2x), supported by a 9.8% EPS CAGR from FY17-20.

Source: 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
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Re: Rohas

Postby winston » Wed May 06, 2020 8:57 am

not vested

Trading Buy: ROHAS-9741
Look beyond FY2020

(Last price: RM0.425, Potential upside +25.9%)


Company Profile

ROHAS is principally involved in the fabrication of steel towers for power transmission and telecommunications industry, having amassed over 30 years of experience. It has also branched out into the EPCC role for power, telecommunications, water and steel fabrication industries.


Trading Catalyst

Due to COVID-19, ROHAS project execution has been delayed in various countries but management remains optimistic for a restart despite the lockdown due to its involvement in critical power utility infrastructure, supported by a healthy fabrication order book at ~RM170m and EPCC order book ~ RM530m.

The risk-reward profile is attractive the stock is only trading at 7x FY21 P/E (61% discount to 2Y mean and in line with PESTECH) and 0.6x P/B (50% lower to peers and -44% to 2Y mean).

In the wake of positive crossovers of 20D SMA above 30D/50D SMAs, ROHAS is poised for an impending downtrend line breakout (near RM0.45) soon, to challenge higher resistances at RM0.49-0.535 levels.


Technical View
Resistance: RM0.450 / RM0.490 / RM0.535
Support: RM0.400 / RM0.390
Cut loss: RM0.380

Key Financial Stats
Trading at 7x FY21 P/E (61% discount to 2Y mean and in line with PESTECH) and 0.6x P/B (50% lower to peers and -44% to 2Y mean).

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
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Joined: Wed May 07, 2008 9:28 am


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