UCHITEC

[winston]

not vested

In the wake of the recent relief rally in Nasdaq, we expect UCHITEC (HLIB Research – BUY- RM3.83 TP), a renowned original design manufacturer (ODM) of electronic control modules to stage further technical rebound to rest all-time high of RM3.55 (4 Mar) after staging a downtrend line breakout (on 2 Apr) and forming a strong base near RM3.00-3.10 levels.

A strong breakout above RM3.55 will spur prices higher towards RM3.67-3.80 territory.

The stock is currently trading at 17.2x FY21E P/E with 5.1% DY and RM0.34 netcash (10% to share price).

Source: HLIB