Posted by cal1198 > 2019-05-01 17:21 | Report Abuse

KYM (8362) - INDUSTRIAL PAPER BAG SPECIALIST KYM is engaged in the manufacture and marketing of industrial paper bags and paper egg trays. They have 3 reportable segments (Manufacturing, Investment & Property). KYM was a hot stock back in 2017 as their financials did pretty well during that time and ever since this stock has tumbled down and we believe it's time to relook into this company because of the reasons below. Reasons: 1. In August 2018 KYM Holdings Berhad (KYM) announced that they have invested RM65 million to modernise its Tapah plant and introduce a state-of-the-art industrial paper sack line to increase its exports throughout the Asian region. 2. The RM20 million investment for the plant and RM45 million for machines and equipment emphasised the company’s commitment to pursue excellence, and to create more sustainable, innovative and quality packaging solutions in a cost-effective manner. 3. The investment will boost KYM’s wholly-owned subsidiary, Hasrat Meranti Sdn Bhd production capacity by a further 50 per cent to 230 million paper sacks per annum from the current 150 million. 4. Exports had increased 62 per cent from RM18 million in 2017 to RM29 million in 2018 which shows a positive improvement in their exports. 5. The company’s exports have registered a double-digit growth in revenue year-on-year and a compounded annual growth rate of 13.3 per cent for the past 10 year. 6. Hasrat Meranti is the dominant player in the supply of cement packaging bags, commanding a 40 per cent market share in Peninsular Malaysia. 7. As we can see LAFMSIA share price has nearly went up by 80% due to the bullishness on the construction sector especially eversince ECRL is given a green light to proceed which also translates more cement is needed for construction therefore more cement packaging bags are needed to package the cement therefore KYM could be the biggest beneficiarry in the segment. 8. Under the leadership of a new dynamic management team, supported by an experienced board, the Group will focus on activities to increase market share domestically as well as open new markets regionally to further increase sales and exports Technical Analysis: 1. KYM resistance is at 0.38 and if this resistance is broken we anticiapte the price could go to 0.43. 2. MACD histrogram is at positive level which shows that the stock is quite strong and bullish. 3. RSI is around 50% level which also shows the stock is changing it's trend from oversold to a bullish level. Conclusion: KYM has a huge upside because of the given reasons above and we believe that KYM could further improve and be back into the radar. We hope that many of you will realize the potential of this company and will start to look at it.