Kawan Renergy Bhd (KENERGY, 0307)

• KENERGY is poised for a potential bullish breakout from the pennant pattern. The consolidationwithin the pennant pattern is likely at the tail-end following the forming of a long white candle last Friday. In view of the stock pulling further away from all EMAs further suggest a likelihood of a technical breakout.

• In the event if it breaks above the RM0.95 neckline, this should lift the stock towards the subsequentlevel of RM1.00 (R1), followed by RM1.10 (R2).

• On the downside, stop-loss is set at RM0.80.

• Fundamentally, KENERGY has secured an RM11.8m contract for fabrication works at ChemicalIndustries Malaya Sdn Bhd, boosting its order book to RM138.3m. This highlights KENERGY's capability in delivering quality engineering solutions. Additionally, KENERGY plans to enter into the independent power producer market, focusing on biogas and biomass power plants, which will leverage its technical expertise and generate recurring revenue.
  

Source: Rakuten Research - 1 Jul 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo