KUALA LUMPUR (Aug 21): Kenanga Research said AME Elite Consortium Bhd (AME) stands to benefit from the potential inflows of FDI given the escalating US-China tension.
In its daily technical highlights the research house said this is seen in AME’s resilient earnings at RM14.8 million (flat quarter-on-quarter) in 4QFY20 despite the on-going pandemic, which brought its FY20 result to RM63.7 million in its first full financial year since listing.
Kenanga Research said the group has recently entered into a JV agreement with Baozhou New Energy Technology Sdn Bhd to provide businesses with a one-stop solution and service provider for solar energy systems, engineering, procurement, construction and commissioning (“EPCC”) of renewable energy projects.
The research house said the move would better provide AME with a more complete suite of industrial property development solutions.
“Ichimoku-wise, the stock appears to be challenging a “Kumo Breakout”, backed by above-average trading volume. Should the buying momentum persist, we believe a trend reversal could be in sight following signs of a “Kumo Twist” too.
“With that, our resistance levels are set at RM1.85 (R1) and RM2.00 (R2), which represent upside potentials of 11% and 20%, respectively.
“Our stop loss level is set at RM1.50 (or 10% downside risk),” it said.
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