After sliding from a high of RM0.36 in mid-August last year to RM0.195 currently, or back to where it was at the beginning of
April 2020, a technical rebound may be forthcoming for LYC shares.
On the chart, the share price will probably show an upward bias on account of the strengthening MACD signal and an
unwinding of the stochastic indicator from the oversold area. With that, the stock could be on its way to scale towards the resistance targets of RM0.23 (R1) and RM0.26 (R2), which translate to upside potentials of 18% and 33%, respectively.
Stop loss price is placed at RM0.17 (or a 13% downside risk). A niche player in the healthcare industry, LYC is a provider of mother and child care related services such as postnatal & postpartum care and confinement care. It is also involved in other healthcare segments (such as senior living homes, family clinics, childcare services, cosmetic & aesthetic, and fertility services) as well as the operation of medical centres in Singapore. More recently, the grooup has announced acquisition plans to venture into the nutraceutical business and dental treatment services to diversify its income streams.
LYC has turned slightly profitable with net earnings of RM0.3m in 4QFY22 (compared with net losses of RM3.3m in
3QFY22 and RM1.7m in 4QFY21), narrowing its full-year net loss to RM9.1m in FY March 2022 (versus FY21’s net loss of
RM11.7m).
Analysis provided by Kenanga Research
