Kronologi Asia Bhd (KRONO) is likely to continue to leverage onto the global digital transformation as business entities embarks into automation and digitalisation process to shore up production efficiency, said Malacca Securities in the recent Technical Focus report.
Already, quarter four financial year 2023 delivered a record high bottom line in a single quarter at RM12.4 million. The company engages in the provisions of business consulting, designing of solutions and research and development for information technology software and data solution related businesses.
Some of KRONO’s key clientele include multinational corporations such as Jollibee Food Corporation, Toshiba Information Equipment (Philippines), Ocean Park (Hong Kong) and NCS Internal Video & Surveillance Smart City (Singapore).
“We reckon that the re-opening of China borders bodes well for KRONO’s subsidiary, Quantum China Limited which are engages with several parties to boost their customer base. As at financial year 2023, KRONO is operating with a healthy balance sheet with a net cash position of RM54.4 million, translating to net cash per share of 7.4 sen,” said Malacca Securities.
Technically, the uptrend intact formation was established since end-January 2023. Price continues to gain traction in recent months, before hitting some resistance in late April 2023. Price has since pullback towards the daily exponential moving average 120 before marching higher.
“Coming closer, price has formed a bullish candle and subsequently formed a consolidation breakout above RM0.56 accompanied by improved volumes which may lead to further upside, targeting the resistances of RM0.595-0.63, with long term target at RM0.655. Support is pegged at around RM0.52, while cut loss is set at RM0.515,” said Malacca Securities.
