contrastBtngrayscaleBtn oku-icon


plusBtn crossBtn minusBtn


This site
is mobile


Solarvest poised to ride on domestic solar industry prospects, says Kenanga

Solarvest poised to ride on domestic solar industry prospects, says Kenanga

16 Oct 2020

Kenanga Research said Solarvest Holdings Bhd is poised to ride on the bright prospects of the domestic solar industry.

In a daily technical highlight today, the research house said the recent roll out of the Renewable Energy Investment (under the Large-Scale Solar) programme is expected to offer about 1,000 MWp of solar quota for open tender (translating to about RM4 billion worth of investments).

It said that in addition, Solarvest’s plan to transfer its listing status from the ACE Market to the Main Market by the end of this year is expected to put the stock on the investment radar of a wider pool of investors going forward.

Kenanga said this comes after the Group posted net profit of RM15.7 million in FY March 2020 and RM800,000 in 1QFY21 while net cash & cash equivalents stood at RM50.8 million (or 13 sen per share) as of end-June this year.

It said forward earnings visibility will be underpinned by an outstanding order book of RM178.4 million as of June 2020.

“On the chart, after sliding from a peak of RM1.63 in mid-June to a trough of RM1.10 in mid-August this year, the stock has plotted higher lows subsequently.

“This could set the stage for Solarvest’s share price – which gapped up to rise above the 50-day SMA line yesterday – to overcome a downward sloping trendline ahead.

“A likely technical breakout may then lift the shares towards our resistance thresholds of RM1.37 (R1; 10% upside potential) and RM1.49 (R2; 19% upside potential).

“Our stop loss level is pegged at RM1.13 (or 10% downside risk from yesterday’s closing price of RM1.25),” it said.

Source: The Edge Markets Posted on : 16 October 2020