Osim: Uptrend still intact...... Opportunity to accumulate near support on pullback.... (BUY)

Osim has broken out above the 2.50 critical resistance last week and surged higher. Uptrend still intact as long as it hold above 2.50 support now. Likely to consolidate from 2.50 to 2.60 for a while before finding more momentum upwards. Can accumulate above 2.50 and trade the 10 cent range or wait for break above 2.60. A break above 2.60 can pave the way to 2.80.

Stop loss at 2.46

 

OCBC – 28 JAN 2014               

OSIM International: On a sustainable growth path
OSIM International Ltd (OSIM) reported a good set of 4Q13 results which saw revenue and PATMI increasing by 15.5% and 22.1% YoY to S$178.6m and S$27.6m, respectively. This was in line with our expectations. It also declared a final dividend of S$0.02/share, bringing total FY13 DPS to S$0.06. Notably, OSIM has now delivered 20 consecutive quarters of YoY PATMI growth since 1Q10. In our view, this growth has been underpinned by management’s strong execution capabilities amid its continuous product innovation drive and efforts to boost its brand profile and efficiency gains. We believe this warrants a re-rating in OSIM’s share price and hence assign a higher target peg of 18x (previously 16.5x) to our FY14F EPS forecast, which we revise upwards by 3.3%. This lifts our fair value estimate on OSIM from S$2.56 to S$2.90. Maintain BUY.

Trading Sell: Yangzijiang. Price 1.09. ( Key support broken) - CFD SELL ONLY

Yangzijiang has broken down the psychological support at 1.10 today finally after staying above it since Oct 2013…. Break down on stronger than normal volume seen currently (Top 10 volume). CFD SELL trade opportunity triggered. Downside to 1.05 first which also coincides with the 200 DAY Long term MA. A break below 1.05 can see it trade to 1.00 then 0.97. Bearish head and shoulder pattern can be seen with break of neck line support at 1.10.

Buy Stop at 1.125

 

 

********** Trading BUY: Jason Holdings.... Breaking to new high, new support at 0.50

Following up from previous buy call in February. Jason Holding has indeed traded higher slowly to hit a new high seen today at TOP 30 Volume. Has been consolidating before Critical 0.500 for about a week and  a breakout seen today. Uptrend still intact at the moment unless it prove otherwise and break any critical support. Those with long positions previously can raise stop loss price to 0.485 and continue to ride the trend. As long as 0.500 is a new support, a rise towards 0.55 and 0.60 can be possible. Note that it has been consistently trading above the 20 DAY MA short term moving average since Jan as a sign of strength. Ride till support breaks down.

Stop loss at 0.485

 

********* Noble: Cleared immediate 1.08 resistance...... Price now at 1.09...

Noble has cleared the 1.08 resistance level after breaking below it since early December last year. Have tested 1.10 which would be a psychological level to watch… a break above 1.10 can pave the way to 1.15 fast… Top 10 volume seen currently on breakout…. Can average up if the 1.10 clears out.

Stop loss at 1.065.

 

NEWS – 5^TH MARCH 2014

*Noble: Confirmed that it is currently engaged in discussions in relation to a potential JV around its agri business. A deal, if it materializes, is estimated to be worth potentially US$1b, with China agri giant, COFCO tipped by media as the potential buyer.  

 

************** Hankore: Testing 0.130 as mentioned previously.... can it clear now ?

Hankore has tested the 0.130 resistance this morning on  TOP 2 VOLUME….. Monitor carefully for more upside if the sellers at 0.131 and 0.132 get eaten up fast…. Can consider averaging up with target to 0.136 to 0.140.

 

 

Sent: Tuesday, February 25, 2014 12:36 PM
Subject: ************** Consolidating before Breakout: Hankore.... Monitor for break of 0.130 i surge of new HIGH.

 

Hankore is currently consolidating from 0.122 to 0.130 at the moment after seeing a fairly reasonable run up and a breakout of the sort term downtrend line as mentioned previously. More upside likely if the sellers at 0.130 and 0.131 get taken out and Volume remains strong. Currently at TOP Volume and high today at 0.129. DMG target price at 0.161. Those waiting for the break can consider accumulating within this range for more profit if it does happen. Average up on breakout can be done also and take profit from 0.136 to 0.140 first.

Stop loss at 0.119

 

 

 

Sent: Monday, February 17, 2014 11:40 AM
Subject: ************ May continue uptrend on breakout: Hankore. Share price 0.119.

Hankore has staged a strong breakout above the channel resistance downward sloping line last Friday. Quite a convincing breakout seen on Top volume previously. This could mean a reversal of the short term down trend. Next resistance to watch is the psychological 0.120 level which is also the high for today. At this price level it has also lifted above the 20 DAY Short term MA which can signal strong short term momentum. A break above 0.120 can pave the way to 0.125 which was the previous high in Jan last month. Lets see whether sellers at 0.120 get cleared out?

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************* Consolidating before Breakout: Hankore.... Monitor for break of 0.130 in surge of new HIGH.

Monitor for breakout above 0.130 again, following up from previous post…….

 

Sent: Tuesday, February 25, 2014 12:36 PM
Subject: ************** Consolidating before Breakout: Hankore.... Monitor for break of 0.130 i surge of new HIGH.

 

Hankore is currently consolidating from 0.122 to 0.130 at the moment after seeing a fairly reasonable run up and a breakout of the sort term downtrend line as mentioned previously. More upside likely if the sellers at 0.130 and 0.131 get taken out and Volume remains strong. Currently at TOP Volume and high today at 0.129. DMG target price at 0.161. Those waiting for the break can consider accumulating within this range for more profit if it does happen. Average up on breakout can be done also and take profit from 0.136 to 0.140 first.

Stop loss at 0.119

 

 

 

Sent: Monday, February 17, 2014 11:40 AM
Subject: ************ May continue uptrend on breakout: Hankore. Share price 0.119.

Hankore has staged a strong breakout above the channel resistance downward sloping line last Friday. Quite a convincing breakout seen on Top volume previously. This could mean a reversal of the short term down trend. Next resistance to watch is the psychological 0.120 level which is also the high for today. At this price level it has also lifted above the 20 DAY Short term MA which can signal strong short term momentum. A break above 0.120 can pave the way to 0.125 which was the previous high in Jan last month. Lets see whether sellers at 0.120 get cleared out?

 

 

DMG – 21^ST February 2014

HanKore Environment: SGD0.123                                BUY (TP: SGD0.161)
Highlights From The Non-Deal Roadshow

HanKore Environment Tech (Hankore) chairman David Chen and ED/CFO Felix Yau participated in our 19 Feb non-deal roadshow (NDR) in Singapore. We have a BUY rating on the company with a SGD0.161 TP that is based on 25x FY15F P/E. Hankore’s strong points include further progress in its merger with CEI, potentially lower financing costs and solid asset quality.

Merger with China Everbright International or CEI (257 HK, NEUTRAL, TP: HKD9.04) on track. As reiterated earlier, Hankore’s merger with CEI is making good progress. The injection of the latter’s assets should take place going into FY15 and will bring the former’s combined capacity to ~3.6m tonnes/day. The union between HanKore and CEI is a highly complementary one, given the location of their water assets. Each has a foothold in Jiangsu and Shandong, which are amongst China’s provinces with the highest GDP growth levels.

State backing to lower HanKore’s financing cost. With CEI – a state-owned enterprise (SOE) backed by the State Council of China – as HanKore’s parent, we will see the company’s financing costs fall to ~4% from 7.5% currently. This will give rise to cost savings as well as provide the company with higher returns on its wastewater treatment investments.

Asset quality to be key differentiator. HanKore’s existing 11 wastewater treatment plants, which have design capacities of ~155,000 tonnes/day on average, are the key large-sized plants in their respective  regions. These plants have the potential to tap on rising economies of scale and operating leverage as they grow in operating capacity, thereby outperforming other plants of smaller scale through greater cost efficiencies.

Re-rating in motion. Maintain BUY with SGD0.161 TP. We believe that as HanKore draws closer to completing its merger with CEI, its valuations will re-rate. This process is already underway. At the current price of SGD0.123, the stock is trading at a 19x FY15 P/E (incorporating CEI’s asset injection), compared with the peer average of 30x. Maintain BUY, with our SGD0.161 TP based on a 25x FY15 P/E.

 

********** Trading Buy: Indo Agri. Price 0.86.

Posted previously to our Client, would be good to take profit now too…. Has reached our Target price already ! NOW AT 0.93

 

Sent: Tuesday, February 25, 2014 1:51 PM
Subject: *********** Trading Buy: Indo Agri. Price 0.86.

 

Following up from Previous Post as seen below, Indo Agri has indeed traded higher after breaking above the 0.800 resistance level previously. Has consolidated briefly below the 0.85 level before breaking out again today. More upside can be possible to 0.90 psychological level. As long as 0.85 holds as new support level, we are short term bullish and can consider taking profit from 0.88 to 0.91.

Stop loss at 0.835

 

 

Sent: Friday, February 14, 2014 11:15 AM
Subject: ********* Trading Buy: Indo Agri - Cleared 0.800 and Short term MA.............

 

Can expect to see more upside to 0.85 if the 0.800 holds as new support. Now at 0.805. Has just broken above the 20 DAY MA Green line after more than a month which can signal a short term reversal upwards.

Stop loss 0.785