not vested
Trading Buy: TEXCYCL - 0089
Values resurface after recent sell down
(Last price: RM0.420, Potential upside +27.4%)
Company Profile
TEXCYCL (listed in July 2005) is primarily engaged in an environmentally friendly waste management company with over 30 years of industry experience, TEXCYCL specialises in the decontamination of scheduled waste as licensed by the Department of Environment (DOE), Malaysia
Trading Catalyst
TEXCYCL’s outlook is bright, supported by its bread-and-butter waste management division as well as the eventual kick-start of its Teluk Gong and UK Renewable Electrical Energy Plant (REEP). Moreover, the potential listing to the Main Market would provide TEXCYCL to access to a wider pool of institutional investors and enhance its reputation.
After tumbling 28% from YTD, valuation has become more palatable at 16x trailing P/E (vs peers’ 33x) and 1x P/B (10Y average 1.6x).
Technically, the stock is poised for further advance towards RM0.46-0.535 levels after staging a bullish daily and weekly downtrend line breakouts last Friday.
Technical View
• Resistance: RM0.460 / RM0.490 / RM0.535
• Support: RM0.400 / RM0.390
• Cut loss: RM0.370
Key Financial Stats
• Trading at 16x trailing P/E (vs peers’ 33x) and 1x P/B (vs 10Y average 1.6x).
Source: Bloomberg, HLIB