The return of buying momentum for CEB 5311 CAPE EMS BERHAD. How high can it go?
Electronics manufacturing services (EMS) provider Cape EMS Bhd is seeing the return of buying momentum.
The counter moved above the RM1.43 resistance level with a bullish bias may emerge above this level.
Charts show that Cape EMS’ near-term resistance level is seen at RM1.60 followed by RM1.70.
If indeed the counter reaches these near-term resistance level, it will be its new all time high since its debut on Bursa Malaysia's Main Market on March 10.
Recall that on its first trading day, the counter soared 67% or 60 sen to finish at RM1.50 versus its IPO price of 90 sen.
This impressive debut made Cape EMS one of the best performing Main Market IPO stocks on maiden trading since last year.
Over the past 5 days alone, the stock has gained 12% to close at RM1.49 on April 20.
Looks like baring any calamity or worsening economic situation, it should not be difficult to reach fresh highs.
Even though Cape EMS has lost some ground since reaching a high of RM1.54 to touch a low of RM1.18.
However, it has been trending higher andl way above its IPO price of 90 sen.
Thing is, the company will likely attract more institutional investors once it gets a Shariah-compliant status.
It plans to reduce contribution from e-cigarettes segment and focus on key produces such as wireless communications equipment and smart utility data collection equipment.
As a Shariah-compliant counter, many local institutional investors will be able to invest in Cape EMS, making it less susceptible to erratic price movements while giving it more credibility.
Based on Cape EMS financials, investors should have little to worry about.
For the financial year ended Dec 31, 2022 (FY22), Cape EMS saw a 28% you jump in net profit to RM33.54 mil while revenue grew 27.2% to RM438 mil.
The group’s profit after tax margin in FY22 was 7.7%, which was slightly above FY21’s 7.6% margin.
In terms of revenue, its industrial segment makes up 70% of the figure while the consumer products segment the remaining 30%.
The gearing ratio is 0.9 times (FYE 2021), and the company’s gearing ratio is over the healthy benchmark of 0.25 ~ 0.5.
Another reason for investors to be wary of is Cape EMS’ customer concentration risk as what happened to ATA IMS Bhd.
Currently, its top 5 customers contribute 85.9% of the revenue to Cape EMS.
That said, there are more compelling reasons to be bullish on Cape EMS in the near term and take advantage of the positive sentiments on the counter.
#CEB
https://xifu.my/OpinionsComment.aspx?BID=B03244233P1AEAEC
Singapore Investment Bloggers
-
-
-
-
-
-
-
Cory Diary : Portfolio Updates7 hours ago
-
-
6 property questions that have no answer10 hours ago
-
-
-
-
I am in debt13 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Average Cost of COE1 day ago
-
-
-
-
Having A Ride Of Our Lives2 days ago
-
-
-
-
CPF interest rate to increase2 days ago
-
-
-
-
-
100k before 303 days ago
-
-
Real Estate Business Update!3 days ago
-
Monthly Summary of May 20233 days ago
-
-
May 2023 Portfolio Updates3 days ago
-
-
-
-
-
-
-
-
-
Investment Summary - May 20235 days ago
-
-
-
Portfolio (May 31st, 2023)6 days ago
-
-
Portfolio Summary for May 20236 days ago
-
-
Looking at Rental Yields6 days ago
-
-
-
-
-
Month of May 20236 days ago
-
-
-
I was right! Sort of....1 week ago
-
Updates for May 20231 week ago
-
-
-
-
-
-
Dirty, Dirty Coal1 week ago
-
-
-
-
-
-
-
-
Meta's new Twitter competitor2 weeks ago
-
Liquidity, Liquidity, Liquidity2 weeks ago
-
-
-
-
-
-
-
Success in life2 weeks ago
-
-
-
A New Light4 weeks ago
-
-
-
-
-
-
-
-
-
-
-
-
-
My retirement test drive: Q1, 20231 month ago
-
Snack Empire – Crunch Time1 month ago
-
-
-
-
-
-
1Q 2023 Investment Strategy Update2 months ago
-
-
-
Dividends Contributors – Top 102 months ago
-
-
Individual Income Tax Season 2023 Singapore2 months ago
-
-
-
How long is the RES course?2 months ago
-
-
-
I don’t know how My Portfolio is Performing3 months ago
-
-
-
-
-
How to become a real estate agent in Singapore3 months ago
-
-
New Launch Spotlight: The Botany at Dairy Farm4 months ago
-
A New Beginning – The Year of the Rabbit4 months ago
-
-
-
Demoralized5 months ago
-
2022 Thoughts, Hello 2023!5 months ago
-
-
Series of Defaults for Maple Finance5 months ago
-
Takeaways from “Sea Change”5 months ago
-
-
Greed is Coming Back6 months ago
-
-
-
-
Investing is Easy6 months ago
-
-
-
-
-
-
-
-
-
Portfolio Update - 2Q202211 months ago
-
-
What is Overemployment11 months ago
-
Terra Hill Condo (former Flynn Park)11 months ago
-
-
-
-
-
-
-
-
-
-
Recent Post
-
-
-
-
-
RCECAP 9296 RCE CAPITAL BERHAD 改变派息政策1 week ago
-
-
二小姐《无情的人儿》3 weeks ago
-
-
-
-
-
-
-
下跌股:康大工业(KOTRA,0002, 主板保健股) RM5.57支撑4 months ago
-
-
【马股】16%+高息股!0负债高现金!能入吗?6 months ago
-
8月棕油库存料升13.5% 种植公司次季净利看涨9 months ago
-
CHINWEL – Not too late to invest.11 months ago
-
恒大置地(TAMBUN,5191,主板产业股)迈向98仙/敏源1 year ago
-
-