#Hot Stock* Harbour Link rises 8.3% after Kenanga’s recommendations
KUALA LUMPUR (Mar 13): Harbour-Link Group Bhd shares were among the top gainers on the stock exchange today following Kenanga Investment Bank’s analysis and recommendation on the stock.
At 2:44 pm today, shares of the company rose 14 sen or 8.33% to RM1.82 per share with 1.55 million trades done.The integrated logistics provider in East Malaysia is said to be an “unearthed gem” in Bintulu.
The research house confirmed a “bullish flag” breakout for the stock.“The increasing trading volume coupled with the improving readings from the key momentum indicators suggested that Harbour is well-positioned to resume its bullish uptrend,” said the note.“We expect follow-through on the buying today, and an eventual move towards the RM2.50”
The research house sees an initial resistance level at RM1.82, with subsequent targets at RM2 and RM2.5.A stop-loss of RM1.53 was placed on the stock.In a phone interview today, analyst Lim Sin Kiat of Kenanga Investment Bank told theedgemalaysia.com that the company was embarking on a maiden venture into property development.
“The key catalyst for the stock is its acquisition of a 130 acre industrial land next to Bintulu Port. The estimated GDV of this industrial/commercial township is RM1 billion at average selling price of RM250 per square foot.”
Lim feels the GDV figure is conservative as “there is still a lot of room to grow in Sarawak.”Lim has also forecast a jump of 56% in net profit for the company in FY15 arising from its property segment.