by winston » Thu Apr 23, 2020 8:51 am
not vested
Trading Buy: SALUTE – 0183
Weathering through the rocky season with its net cash
(Last price: RM0.56, Potential upside +39.3%)
Company Profile
Salutica manufactures electronic products, specialises in consumer and business electronic product development such as Bluetooth stereo headsets, smart watches and precision light guides for optical touch screen systems.
Trading Catalyst
SALUTE has recovered >100% following the plunge of 74% after the Covid-19 outbreak.
We believe the steady recovery will continue, supported by
(i) healthy cash pile of RM65.0m (c.30% of market cap) in its balance sheet,
(ii) steady dividend paymaster since listing,
(iii) 50% workers allowed to work during MCO period and
(iv) SALUTE will continue to co-develop hearable devices with its European design partner and expect 2 of its current product development project to achieve its mass production timeline by 4QFY20.
Technical View
Resistance: RM0.625 / RM0.705 / RM0.78
Support: RM0.52 / RM0.49
Cut loss: RM0.475
Key Financial Stats
DY: 4.3%
Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"