A total of 58 million units were traded on the same day when KAB hits the all time high price of RM 0.325 for 3 trading days (3rd, 5th & 8th Jan). KAB price has started to climb since 11th Dec, 2017, from RM 0.25. The sudden surge in the number of investors buying at a premium price of between RM 0.300 and RM 0.325 will become resistance.
Naturally, these retailers will be pressured to sell off their units at a lower price while institutional investors will starts collecting the units. When KAB units were transacted below RM 0.30, a total of 63 million units were transacted from 12th Jan, 2018 till yesterday, 30th Jan, 2018 (in 13 trading days).
Do compare the total units transacted at a premium of RM 0.30 or higher, is almost at par with the total units transacted below RM 0.30. I would say KAB is ready to make another push after today. The best price to enter would be RM 0.27 (20% discount from an all time high price). If the 4th qtr result is good (announcement to be made in Feb, 2018), it will provides KAB the momentum to go higher.
How does their upcoming ESOS scheme affect the share price? I think this company is undervalued but being so small, I am afraid the ESOS could have a big effect...
KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) is optimistic over prospects for the country’s electrical and mechanical engineering sector despite the change in government following the 14th General Election.
Managing director Datuk Lai Keng Onn said while it was too early to form any expectation, the market had generally reacted well to Prime Minister Tun Dr Mahathir Mohamad’s statement on the review of government-related projects.
“This is definitely good news, as Dr Mahathir also mentioned about getting more participation from local businesses in domestic projects,” he told reporters after the company’s inaugural annual general meeting and extraordinary general meeting yesterday.
Lai said the zero rating of the Goods and Services Tax effective June 1 would indirectly help KAB improve its cash flow in the near term with a neutral impact overall for the company.
“During the transition period until the new tax (Sales and Service Tax) is introduced, this should bode well for the industry, giving more spending power to the consumers and likely boosting our business further,” he added.
On expansion plans, Lai said KAB, which is headquartered in Kuala Lumpur, was currently in the midst of setting up a branch in Johor Bahru to oversee the southern region of the peninsula.
This would be completed this year, followed by a branch in Penang for the northern region, he said.
“We are also expanding into the air-conditioning and ventilation system business, which will contribute (to our revenue) in the next two to five years time.
“Besides that, we will also invest in the Internet of Things where we will be using the Internet to monitor and control the performance of electrical consumption, which will also enhance our position in the electrical industry and maintenance sector,” added Lai.
He noted that capital expenditure, which should not be substantial, would be fully funded internally.
The company’s order book stands at RM223 million, which will keep the company busy until 2020.
The jobs are mainly in the Klang Valley area, and 90 per cent involve its core electrical business.
“We are also securing another new job worth RM50 million (KAB is waiting for the letter of award) and foresee more coming in. Our current tender book is about RM337 million and we anticipate a 20-30 per cent success rate in securing jobs,” said Lai.
For the financial year ended Dec 31, 2017 (FY17), KAB recorded revenue of RM114.55 million and a net profit of RM6.78 million.
It incurred one-off non-recurring listing expenses of RM3.34 million during FY17 in relation to its listing on the ACE Market of Bursa Malaysia.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Beza
1,847 posts
Posted by Beza > 2018-01-26 15:12 | Report Abuse
If you sell it, you will have bullet and energy to go ahead.