KUALA LUMPUR (Jan 10): Shares of steel pipes and fittings manufacturer PANTECH GROUP HOLDINGS BHD [] rose on Thursday after the company posted net profit of RM10.34 million in the third quarter ended Nov 30, 2011, an increase of 69.5% from RM6.09 million a year ago.
At 9.35am, Pantech was up 1.5 sen to 53.5 sen with 1.37 million.
Its revenue increased 49.3% to RM112.65 million from RM75.43 million. Earnings per share were 2.29 sen compared with 1.36 sen. It declared a special interim single tier dividend of 1.2 sen per 20 sen share.
CIMB Equities Research has a technical buy on Pantech Group Holdings at 52 sen at which it is trading at a price-to-book value of 0.7 times.
It said on Thursday that Pantech Group broke out of its medium term downtrend channel recently.
“It seems that prices are likely to charge towards its 200-day SMA soon. If this moving average is taken out, we expect follow through momentum to pick up strongly. The next upswing is going to lift prices towards 54.5 sen and 58.5 sen,” it said.
CIMB Research said the positive technical readings reinforced its bullish stance on the stock.
The research house said the MACD histogram bars have returned to the black while RSI has also hooked upward.
“Traders with lower risk appetite should wait for prices to swing past its 200-day SMA before going long. Be quick to cut loss if 49.5 sen is breached,” it said.
At 9.35am, Pantech was up 1.5 sen to 53.5 sen with 1.37 million.
Its revenue increased 49.3% to RM112.65 million from RM75.43 million. Earnings per share were 2.29 sen compared with 1.36 sen. It declared a special interim single tier dividend of 1.2 sen per 20 sen share.
CIMB Equities Research has a technical buy on Pantech Group Holdings at 52 sen at which it is trading at a price-to-book value of 0.7 times.
It said on Thursday that Pantech Group broke out of its medium term downtrend channel recently.
“It seems that prices are likely to charge towards its 200-day SMA soon. If this moving average is taken out, we expect follow through momentum to pick up strongly. The next upswing is going to lift prices towards 54.5 sen and 58.5 sen,” it said.
CIMB Research said the positive technical readings reinforced its bullish stance on the stock.
The research house said the MACD histogram bars have returned to the black while RSI has also hooked upward.
“Traders with lower risk appetite should wait for prices to swing past its 200-day SMA before going long. Be quick to cut loss if 49.5 sen is breached,” it said.
