Stock Name: HTPADU
Company Name: HEITECH PADU BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has a trading buy on HeiTech Padu as the company is close to signing an agreement with U.S. IT giant Microsoft anytime soon. It said on Tuesday, April 13 that the share price, at RM1.12, has stagnated after bouncing up from a trough of 76.5 sen in late October 2008 to a high of RM1.21 in mid-August last year. "Presently lingering somewhere in the middle of a sideways trading pattern since then, the counter is poised to trend higher ahead as its upside potentials outweigh the downside risks," it said. HDBSVR said on the chart, a target price of RM1.24 (+10.7% from Monday's closing price) is probable riding on technical strength. If there is a breakout from this point, then the stock is expected to be on its way to test the next resistance target of RM1.31 (+17.0% upside potential). In terms of downside cushions, we see support lines at RM1.07 (first) and RM1.03 (second), which translate to possible losses of 4.5% and 8.0%, respectively. The research house said HeiTech Padu – an ICT solutions provider – is currently trading at a historical P/E ratio of 11x based on FY Dec 09 earnings. It posted a full-year net profit of RM10.1m, of which 78% was made in the final quarter. (This compared with a net profit of RM29.7m in FY09, which was skewed by a one-off gain from sales of property, plant & equipment of RM28m, development expenditure written off (RM4m) and provision in diminution in value and amount due from related companies (RM7.9m)). In addition, fundamental downside is supported by a book value per share of RM1.81 (as of end-Dec 09), substantially above Monday's closing price of RM1.12.
Company Name: HEITECH PADU BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has a trading buy on HeiTech Padu as the company is close to signing an agreement with U.S. IT giant Microsoft anytime soon. It said on Tuesday, April 13 that the share price, at RM1.12, has stagnated after bouncing up from a trough of 76.5 sen in late October 2008 to a high of RM1.21 in mid-August last year. "Presently lingering somewhere in the middle of a sideways trading pattern since then, the counter is poised to trend higher ahead as its upside potentials outweigh the downside risks," it said. HDBSVR said on the chart, a target price of RM1.24 (+10.7% from Monday's closing price) is probable riding on technical strength. If there is a breakout from this point, then the stock is expected to be on its way to test the next resistance target of RM1.31 (+17.0% upside potential). In terms of downside cushions, we see support lines at RM1.07 (first) and RM1.03 (second), which translate to possible losses of 4.5% and 8.0%, respectively. The research house said HeiTech Padu – an ICT solutions provider – is currently trading at a historical P/E ratio of 11x based on FY Dec 09 earnings. It posted a full-year net profit of RM10.1m, of which 78% was made in the final quarter. (This compared with a net profit of RM29.7m in FY09, which was skewed by a one-off gain from sales of property, plant & equipment of RM28m, development expenditure written off (RM4m) and provision in diminution in value and amount due from related companies (RM7.9m)). In addition, fundamental downside is supported by a book value per share of RM1.81 (as of end-Dec 09), substantially above Monday's closing price of RM1.12.
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