Wednesday, October 07, 2009

KSeng- a trading BUY

KSeng broke to the upside of its ascending triangle at RM3.94 (see Chart 1). At the same time, it also broke above its medium-term downtrend line at RM4.00 (see Chart 2). KSeng is involved in the following businesses:
- Manufacturing
- Property development
- Property Investment
- Plantations
- Operation of golf club
- Operation of hotels

It is a profitable company which recorded a net profit of RM49.4 million on a turnover of RM451 million for 1H2009 ended 30/6/2009. The improved performance is partly due to write-back of impairment on quoted investments.

KSeng (closed at RM4.04 at the end of the morning session today) is now trading at a trailing PE of 10 times (based on the annualized EPS of about 41 sen). Price to book is about 0.8 times (based on NTA per share of RM4.83 as at 30/6/2009).

Based on the bullish technical breakout, KSeng could be a good trading BUY. The upcoming horizontal resistance for the stock is at RM4.90-5.00.

Chart 1: KSeng's daily chart as at Oct 7, 2009_12.05noon (Source: Quickcharts)

Chart 2: KSeng's weekly chart as at Oct 7, 2009_12.00noon (Source: Quickcharts)

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