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Home » Latest Notice » FundTech Radar (HIGHTEC) - 24th Apr 2018
FundTech Radar (HIGHTEC) - 24th Apr 2018

Good morning.

Today, we feature a note on Kumpulan H & L High-Tech Berhad in our FundTech Radar – 24th Apr 2018. The company is principally engaged in the manufacturing precision engineering moulds and machine parts and customized precision engineering plastic injection moulds and components; property investment & properties development; and oil palm plantation. In FY17, total revenue was made up of 50% export market.

 

Fundamental Stance

· Given the significant increase in plantation, and property and property developments businesses, HIGHTEC registered 16% increase in the revenue and 60% increase in core PATAMI for FY17.

· Its FY17 core PATAMI margin recovered to 25.1% (vs. 18.2% in FY16).

· net cash position of RM11.9m (32.5 sen per share) as at 31 Jan 2018.

· 5-year average dividend yield is about 2.9%. Div. payout declined.

· fresh fruit bunches may continue to increase

· There will be no more houses for sale until the next project kicks in a couple of years later.

· labour shortage in the plantation segment and also foreign currency risk on sales and purchases denominated in USD will be the key factors affecting HIGHTEC’s performance.

· Currently trading at 13.5x 12-month trailing P/E (9.9x if excludes 32.5 sen net cash per share), a 13.6% premium compared to its peers.

 

Technical Front

The uptrend is up but trading volume is fairly low.

Resistances: 1.69/2.18/2.60

Supports: 1.06/0.99/0.80

 

The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.

 

This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.

 

 

24th Apr 2018

Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.

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