​

This year has been a relatively good year for Iskandar Waterfront City Bhd (IWC), in terms of share price, rising from a low of 26 sen to 71 sen as at Dec 22. In fact, the counter has gone up to as high of 85 sen in the past year.

That’s a huge jump and signs are that it will likely see a positive rebound after testing the 67 sen immediate resistance level. If it manages to surpass that level, the bullish momentum is expected to propel the stock towards the 73.5 sen immediate resistance, followed by the 80,5 next resistance.

The Johor-based company which is involved in property development and construction, have seen improving financial results although it is not out of the woods yet.

For the nine months ended Sept 30, 2023, IWC posted a much lower net loss of RM7.2 million compared with RM12.7 million a year ago. This narrowed loss was on the back of a significantly higher revenue of RM63.8 million versus RM28.7 million a year earlier.

This substantial increase in revenue came mainly from recognised from sales of Danga Sutera Semi Detached project, as well as the higher level of work achieved during the period.

Construction The construction sector registered revenue of RM5.43 million for the 9-month period ended 30 September 2023, compared to the preceding year corresponding period, which had revenue of RM308,000. The new construction Rapid Transit System (RTS) project is the main contributor for the construction sector’s revenue.

IWC said the local property market is expected to maintain a “neutral” outlook over the coming year, with increased optimism in the first half of 2024. The property development sector in Malaysia faces persistent challenges related to inflation and fluctuations in interest rates, leading to ongoing concerns about the cost of living.

External pressures from global economic conditions, including US-China trade tensions and conflicts like the Palestinian-Israeli war, further compound the situation. Additionally, currency depreciation and fluctuations contribute to the escalating raw material and construction costs faced by local property developers.

The completion of both development projects, Botanika Tower B and Danga Sutera Phase 2 in August 2023 and October 2023 respectively, has strengthened and further grown our brands, enhancing its market positioning and improving operational efficiency.

IWC said revenue and performance for FY23 are expected to derive from property sales in Taman Danga Sutera as well as the completed project, Botanika.

In October, Tan Sri Lim Kang Hoo announced a proposal to reorganise various businesses and assets owned by him and related parties marks another of the tycoon’s attempts to monetise the massive land bank held under Iskandar Waterfront Holdings Sdn Bhd (IWH).

IWH, which is 63% owned by Lim’s Credence Resources Sdn Bhd and 37% by Kumpulan Prasarana Rakyat Johor Sdn Bhd, has 3,250 acres of land bank, mainly in the Johor Bahru city centre near the waterfront.

Meanwhile, IWH’s 34.3%-owned Iskandar Waterfront City Bhd (IWCity) owns 392 acres in Johor. Investors will continue to keep a keen eye on IWC given the rising interest in the counter, on the back of news flow on the Johor-Singapore Special Economic Zone (SEZ) and the construction of the RTS connecting Woodlands in the island state and Bukit Chagar in Johor Bahru.

​

Here are some of the setup based on Daily Chart:

​

1. Trend reversal and price back to 20 & 40 MA

2. High volume with price break above the short term downtrend line

3. Retest support successfully