not vested
Trading Buy: MIKROMB-0112
(Last price: RM0.330, Potential upside +22.7%)
Company Profile
• MIKROMB (listed in Dec 2005) is involved in the research, development and design of analogue, digital and computer-controlled electronic systems or devices.
Trading Catalyst
• We believe the 29.8% YTD plunge in share prices is overdone and grossly priced in the 33% decline in 9MFY18 earnings, mainly due to temporary product mix/sales aberration, forex losses, higher promotional expenses and expiry of the pioneer status.
• Potential downtrend channel breakout to spur prices to RM0.38-0.405 levels.
Technical View
• Resistance: RM0.350 / RM0.380 / RM0.405
• Support: RM0.320 / RM0.300
• Cut loss: RM0.295
Key Financial Stats
• Trading at 13.1x FY17 P/E (12.1x ex net cash of 2.4sen)
• Strong net cash of 2.4/share or 7% of share price.
Source: HLIB