support is at 1.31 and 1.30. collect at this support levels for a good rebound to at least 1.41. i made a few rounds at this support level. Medium term at least 1.50
He said Hong Leong Investment also preferred defensive picks with decent valuations like Protasco Bhd, Engtex Group Bhd, CSC Steel Holdings Bhd, Heveaboard Bhd, Tex Cycle Technology (M) Bhd and Thong Guan Industries Bhd.
ENGTEX has formed a bullish engulfing candle and subsequently retesting the RM1.37 level accompanied by improved volumes. The MACD Line has issued a BUY Signal, while the RSI is re-testing 50. Monitor for a breakout above RM1.37 targeting the RM1.45 and RM1.52 levels. Support will be anchored around the RM1.32 level.
However given that there are expected to be around 100mil warrants to be converted between now and October (i.e. just in 2.5 months), I think there might be a sustained downwards pressure on price, so better stay away for now and come back once the warrants are settled.
Engtex - Beneficiary of Nationwide Piping Projects
We are initiating coverage on Engtex with a BUY call at a target price of RM1.60 based on FY18F EPS with forward PER of 10.2 times, based on industry peer average. This translates into a potential upside of 26% against its current share price.
@Dualshock, warrant exercise price was adjusted to RM0.83 from RM1.25 due to the 1:2 bonus issue. Automatically the number of warrants and the exercise price gets adjusted.
The good thing about these warrants is that they should provide the company with around RM100mil cash, reducing net gearing to 0.5X and giving them a big chance to pare down bank borrowings and save RM7mil annually on interest expenses.
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Posted by alivetoinvest > 2017-06-05 11:31 | Report Abuse
Any burst water pipe in Malaysia should benefit Engtex :)