Skip to main content

A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Technical Analysis Review: HeveaBoard (5095) 25/10/2017

This counter had recently rallied and closed at a high of RM1.75 on October 23, 2017. What followed in the subsequent days were 2 straight days of profit taking. This was evident by the 2 significant black bodied candles which closed lower until October 25, 2017.
Refer Picture 1 below on the technical chart of HeveaBoard.

Picture 1:HeveaBoard Chart 25/10/2017

For any investor, testing a high 3 times at RM1.75 in 3 months would be an important indicator of a potential change in trend.

Currently, HeveaBoard is trading at an important price "zone" - immediate medium term support level of RM 1.62.

Knowledge sharing
For all support/resistance levels, there is a +/- variance of approximately 1% from the support line indicated. Hence, support at RM 1.62, can be interpreted as support at RM1.61 or RM 1.63.

Can the support zone hold?
Probably, because prices retraced about 50% from its previous rally. Note that the previous rally began in the highlighted RED rectangle - September 2017 - in Picture 1 above. Also note that the current retracement to RM 1.64 is a 50% retracement from its previous rally; in Fibonacci terms, it has retraced to a healthy level for prices to continue on its uptrend.

In my opinion, the consolidation zone in the highlighted RED rectangle in September 2017, was a healthy consolidation zone which led to a breakout on October 11, 2017.

Key Support Levels:
S1: 1.62
S2: 1.59
S3: 1.55

Key Resistance Level:
RM 1.75

USD vs MYR
Since my last review of Hevea, the USD has appreciated against the MYR from 4.2050 (12 September 2017) to 4.2352 (25 October 2017). This does not immediately improve the results of Hevea's Q3 2017 results, but this is a sentiment booster for exporters like Hevea.

Picture 2: USD vs MYR (25/10/2017)


So what's up for us?
I will be monitoring this stock for some time. However, the zone in which Hevea is trading at deeply intrigues me. If the support level holds, no issue. But if prices break below support, I will probably look to add my position.

Key Risks
For me, it would definitely be market sentiment. Despite price action showing some promise, if overall market sentiment is bearish, Hevea's prices may be pressured lower. Check out my analysis of FBMKLCI's bearish sentiment lately HERE.

Final Thoughts
For those who are wondering when is Hevea's next quarterly announcement for Q3 2017, it will be at the end of November.

I strongly encourage those who want to know more about the FUNDAMENTALS of HeveaBoard to check out my analysis HERE.

Note: This is not a recommendation to buy or sell this stock by the writer. The writer owns shares in this company. The writer intends to share his view point on this stock's potential investment value, any decision to invest or sell shares in this company is entirely at the reader's own risk.

Comments

Popular posts from this blog

Apollo Food Holdings Bhd (6432)

Is investing in Apollo Food Holdings Berhad (6432) a secure and risk-free investment? If you are not sure what Apollo Food Holdings does, you would at least have come across its products in your childhood. Do these snacks below ring a bell?

Who would have thought that this company is listed on the Malaysian Stock Exchange? Based on the BCG growth share matrix, Apollo Food is categorized as a “cash cow.” Milking cash from its day-to-day operations. There has not been much excitement in its share price; it has been in a trading range of RM4.50 – RM6.00 for over 2 years.

This stock will ultimately disappoint investors who are seeking growth companies with quick capital appreciation. However, those who are seeking a safe haven for their capital, or intend to protect their capital may consider this stock in their portfolio.

To invest in Apollo, an investor ought to look at a longer time horizon. Hence, I will be looking at a time frame of 5 years.

Chart 1: Key Financial and Investment Stati…

Johore Tin Berhad (7167)

Johore Tin Berhad (7167) or Johore Tin has 2 main business segments:
1. Tin manufacturing – the manufacture of tin cans, containers and tin plates
2. Food and beverage (F&B) – the production of infant dairy products, milk powder, condensed and evaporated milk, and other dairy beverages

One would assume based on its name – Johore Tin – its main business is tin can manufacturing. Surprisingly, it has shifted its focus over the years from a tin manufacturer to a food and beverage company. This happened back in 2012 when its management decided to invest into the food and beverage business. To be frank, I have never noticed its products in the shopping complex as most of the milk products on display are dominated by popular brands from Nestle, Dutch Lady and Fonterra. I was looking out for Able Dairies’ products on the shelves of Tesco, but I was unable to recognise any of its products on display. Below is a breakdown of revenue based on its business segment.

Chart 1: Split …

Bison Charging Ahead !

Bison Consolidated Berhad (5275) is a dynamic convenience store company listed on the Kuala Lumpur Stock Exchange (KLSE). It has grown many folds since it first opened its myNEWS.com store in 1996. 11 years later, it has opened about 300 stores in Malaysia. In 2012, Bison entered into a joint venture with WH Smith Travel Limited to operate WH Smith news, books, travel and convenience stores in Malaysia. My first impression about the convenience store business was that this is a saturated market – apparently NOT. The thought of many convenience stores come to mind – 7 Eleven, 99 Speed Mart, KK Super Mart, NZ Magazine Centre, Family Mart, K Mart and etc.. All of the stores aforementioned compete within the convenience retail segment.

Picture 1: myNEWS.com in Bangsar LRT Station


Picture 2: myNEWS.com in Masjid Jamek LRT Station

Since its listing on the KLSE, the share price has surged almost 100% from RM1.10 to RM2.38 in one and a half years. The surge was mainly driven by the growth story…

A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Technical Review of Econpile Holdings Bhd (5253, 16/6/2018)

The markets have not been exciting lately, but I have an interesting stock to share. For investors who are looking for a stock to trade, I recommend Econpile Holdings Bhd (5253).  Its share price seems to be oversold and is ready for a bullish rebound.   

Based on its technical price chart, its share price started to dip at the beginning of 2018. The 30-day exponential moving average (EMA) has been its overhead resistance since early February 2018 until now. In this article, I will explore the likelihood of it breaking above its 30-day EMA overhead resistance. The 30-day exponential moving average overhead resistance could mean that this stock is in a downtrend as well. 
Pakatan Harapan, Malaysia's newly elected political party's victory in the General Elections in May 2018 had an adverse effect on its share price. Upon the opening bell of the Malaysian market on May 14, 2018, its share price gaped down 8 cents, and closed at RM .788, a decline of 22.7 cents or 22% of its…