not vested
Trading Buy: 3A-0012
(Last price: RM1.35, Potential upside +15.6%)
Company Profile
Listed in 2002, 3A is an established regional F&B ingredients player. Its products are relatively recession proof as they are crucial components for a wide cross section of F&B manufacturing processes. Current, it exports over 30% of its revenue to more than 30 countries.
Trading Catalyst
3A growth is driven by :-
(1) steady underlying demand growth in the F&B industry;
(2) growing export markets and increased product portfolios;
(3) reaping long term synergistic benefits from strategic alliance with Wilmar and
(4) expanded capacity, higher economies of scale and improving production efficiency.
Undemanding valuations (P/E and P/B) against its peers
LT bullish saucer bottom formation
Technical View
Resistance: RM1.39 / RM1.46 / RM1.56
Support: RM1.32 / RM1.29
Cut loss: RM1.26
Key Financial Stats
10-year strong earnings growth at 16%
Trailing 12.5x PE is 38% below peers
Source: Bloomberg, HLIB