Thursday, August 04, 2011

Sendai- Can it break above the resistance at RM1.76

Eversendai Corporation Bhd ('Sendai') is a newly-listed construction company that specialized in structural steel, engineering and power plant construction (here). Amongst its many completed projects were Tower 2 of the Petronas Twin Towers in KLCC and the Burj Dubai. Yesterday, Prince Alwaleed's Kingdom Holdings awarded a contract of USD1.23 billion to the Bin Laden Corp for the construction of the tallest tower, the Kingdom Tower. This mixed-use structure will measure 2/3 of a mile high and will be located in Jeddah. Would Sendai get a piece of the action? Only time will tell. For more on the Kingdom Tower, go here and here.

From the prospectus, we can see that Sendai's net profit increased from RM59.4 million to RM83.3 million & then to RM123.5 million from FY2008 to FY2010. Its turnover had similarly increased from RM783 million to RM817 million from FY2008 to FY2009 but dropped to RM745 million in FY2010. Based on the net profit figure for FY2010 and the current outstanding shares of 774 million, Sendai's EPS is about 11 sen. At RM1.76, Sendai is trading at a PE of 11 times. At this PE multiple, some may see further upside for this stock.

Sendai traded on high volume & chalked up a gain of 6 sen to RM1.76 as at 12.00 noon. That is the horizontal resistance for the stock. It has a good horizontal support at RM1.66-1.68. If it can break above this level, the stock may commence on its upleg.


Chart: Sendai's daily chart as at August 4, 2011_11.45am (Source: Quickcharts)
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7 comments:

  1. AlexPThursday, August 04, 2011 3:59:00 PM

    Hi Alex, MNRB has finally broken out after its 20 cents dividend announcement. It is up by almost 40cents since before the announcement. What do you think is a good price to take profit?

    ReplyDelete
  2. FlorenceThursday, August 04, 2011 4:33:00 PM

    Dear Alex

    Sp setia may not have futher nehotiation with E&O, will this have any sell down on E&O in the near term? thanks.

    ReplyDelete
  3. AnonymousThursday, August 04, 2011 5:16:00 PM

    Hi Alex

    Can comment Crest builder share performance. It is currently trade at 72sen, again its NTA of RM 2.08, Q1 EPS of 13.9sen?

    ReplyDelete
  4. Muhd IzzatThursday, August 04, 2011 9:47:00 PM

    hi alex, sendai is comparable with kkb, kkb's latest quarter earning shows a bit decline in earning, what do u think of kkb earning prospect? p/e is around 7-8

    ReplyDelete
  5. Alex LuSunday, August 14, 2011 10:15:00 PM

    Hi Muhd Izzat

    KKB's technical outlook has turned bearish as the stock is now:
    1) below its 200-day SMA line; and
    2) its 50-day SMA line cut below the 200-day SMA line.

    ReplyDelete
  6. Alex LuSunday, August 14, 2011 10:18:00 PM

    Hi hng

    Crest builder broke its long-term uptrend line at RM0.72-0.74 a few days. BTW Gamuda & IJM have also broken their respective long-term uptrend line last week.

    ReplyDelete
  7. Alex LuSunday, August 14, 2011 10:23:00 PM

    Hi AlexP

    I guessed it is a moot point now but MNRB has good support at the 50-day SMA line at RM2.90 & its resistance is at RM3.00, RM3.15 & RM3.40.

    ReplyDelete