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Monday, March 21, 2016

HSL: Bullish Breakout


Last week, HSL announced that it has secured 2 contracts with value totaling RM2.46 billion, via two separate consortia. The contract details are:

1) The consortium of Kumpulan Nishimatsu Hock Seng Lee has been awarded a contract by the State Government of Sarawak through Jabatan Perkhidmatan Pembetungan Sarawak, worth Ringgit Malaysia Seven Hundred Fifty Million Only (RM750,000,000.00) for the Kuching City Central Wastewater Management System: Centralized Sewerage For Kuching City Centre (Package 2) (“the Project”). Hock Seng Lee Berhad has 75% equity in the Consortium. For more, go here.
2) The consortium of Hock Seng Lee Berhad – Dhaya Maju Infrastructure (Asia) Sdn. Bhd. Joint Venture, an unincorporated joint venture between Hock Seng Lee Berhad and Dhaya Maju Infrastructure (Asia) Sdn. Bhd., has been awarded a Contract by Lebuhraya Borneo Utara Sdn Bhd for the DEVELOPMENT AND UPGRADING OF THE PROPOSED PAN BORNEO HIGHWAY IN THE STATE OF SARAWAK, MALAYSIA - PHASE 1: BINTANGOR JUNCTION TO JULAU JUNCTION AND SIBU AIRPORT TO SG. KUA BRDIGE (INCLUDING BATANG RAJANG BRIDGE).  The Project is worth Ringgit Malaysia One Thousand and Seven Hundred and Ten Million, Four Hundred and Thirty One Thousand, Seven Hundred and Eighteen and Sen Ninety Only (RM1,710,431,718.90) and Hock Seng Lee Berhad has 70% equity in the Consortium. For more, go here.

The stock broke above its RM2.00-2.05 resistance last week. With the breakout, the share price may rise to the first target of RM2.35. On the longer term, the share price may continue its uptrend to RM3.00. Its all-time high was RM4.00 in 1997. The later target may not be too far-fetched in view of its position as one of the top construction companies in Sarawak and the amount of work that may be awarded via the Pan Borneo Highway project.


Chart 1: HSL's weekly chart as at Mar 18, 2016 (Source: ShareInvetor.com)


Chart 2: HSL's monthly chart as at Mar 18, 2016 (Source: ShareInvetor.com)

Based on bullish breakout, HSL could be a good trading BUY.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BAT & HSL.

1 comment:

Unknown said...

Mega project. Instead of HSL