KUB Malaysia Bhd hit a 52-week high of 88 sen last month. It staged a mild correction, turning into a short-term consolidation to close at 81 sen on July 5. The next resistances are located at 82.5 sen and 85.5 sen. This breakout likely signals that the longer-term uptrend has resumed.

Follow-through buying may lift prices up to retest the 52-week high at 88 sen next. The following resistance targets are at 93 sen and 96 sen. In the past year, the counter rose some 62%.

KUB provides information technologies and telecommunication services, and provides online and conventional education. It also bottles and trades liquefied petroleum gas, operates a chain of restaurants, develops and invests in property, and provides construction services. The company recently ventured into the manufacturing of power cables and wires following a takeover exercise of Central Cables Bhd.

KUB, whose largest shareholder is Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani, had November last year signed a deal to acquire an 86.65% stake in CCB. After the completion of the acquisition, KUB launched an unconditional MGO last month to acquire the remaining shares in CCB at RM2.60 per share, or via the issuance of new shares in KUB at an issue price of 60 sen per share.

KUB previously said that the acquisition would enable the group to go into upstream activity within the value chain of the power industry that will integrate well with its existing power business. CCB was incorporated in 1967 and is principally involved in the manufacturing of power cables and wires.

For its 1Q24, the company’s net income jumped 63.7% to RM14.1 million on the back of 11.9% increase in revenue to RM145.4 million. As the company broadens its activities into the cable manufacturing business, it may look like a good bet for further upward momentum of its share price.