HIBISCS (5199): Main Market, Energy-O&G producers

*HLIB maintains BUY on Hibiscus with higher TP of RM3.36 (from RM3.20), based on SOTP of all its producing assets’ NPV – after accounting for each asset’s free cash flow (FCF) over their respective targeted lifespan. At 4.2x FY/625f P/E, we believe that Hibiscus is a compelling case and is conspicuously undervalued given its strong foothold in the upstream energy space.

Technical view Uptrend from Jul 2023 low of 2.13 remains intact. A successful breakout above 20D/50D Moving Averages (MAs) may spur further upside towards 2.75-2.85-3.00 region. 

✅Current price: RM2.60
✅Entry: RM2.50-2.54.58-2.60
✅Resistance: RM2.75-2.85-3.00
✅Cut loss: RM2.49
✅Risk profile: Medium

Source: Hong Leong Investment Bank Research - 23 May 2024