Hibiscus Petroleum (HIBISCS)’s share price has fallen 39% from a peak of RM1.47 in May last year to close at RM0.90 on Friday, said Kenanga Research (Kenanga) in a recent report. Nearing its key support level of RM0.80, a technical rebound could be anticipated.
“We believe the share price will shift upward as both Stochastic and relative strength index indicators are strengthening, and the share price is currently hovering at the lower end of the Bollinger Band,” said Kenanga.
Hence, the stock is poised to challenge Kenanga’s resistance thresholds of RM1.00 and RM1.08. Conversely, Kenanga’s stop-loss price has been identified at RM0.80. An independent oil and gas exploration and production company with a diversified portfolio of assets and concessions located across Malaysia, the United Kingdom, Australia and Vietnam, HIBISCS is a direct proxy to oil price movements.
Earnings-wise, the group reported a net profit of RM71.5 million in quarter three financial year 2023 compared with a net profit of RM307.5 million in quarter three financial year 2022. This took nine months financial year 2023 net profit to RM277.2 million.
Based on consensus forecasts, HIBISCS’s net earnings are projected to come in at RM420 million in financial year June 2023 and RM427.2 million in financial year June 2024, which translate to forward price-earnings ratios of 4.3x this year and 4.2x next year.
Towards Samaiden Group (SAMAIDEN), the share price has been moving sideways after hitting a high of RM1.03 in early April this year to close at RM0.91 on Friday. With the recent lifting of a ban on renewable energy export, a continuous upward trajectory is expected.
On the chart, the share price is expected to continue its upward momentum backed by the strengthening relative strength index indicator, rising Parabolic Stop And Reverse trend, and the 12-day moving average still hovering above the 26-day moving average following the recent MACD golden cross.
“An upward shift could then propel the stock towards our resistance targets of RM1.00 and RM1.08. Our stop-loss level is pegged at RM0.83,” said Kenanga.
Fundamentally-speaking, SAMAIDEN is principally involved in the engineering, procurement, construction & commissioning of solar photovoltaic systems and power plants.
Its other business activities include the provision of renewable energy and environmental consulting services, as well as operation and maintenance services.
Earnings-wise, the group reported a net profit of RM1.9 million in quarter three financial year 2023 compared with a net profit of RM4.2 million in quarter three financial year 2022. This took nine months financial year23 bottomline to RM6.9 million.
Based on consensus forecasts, SAMAIDEN’s net earnings are projected to come in at RM11.6 million in financial year June 2023 and RM20.1 million in financial year June 2024, which translate to forward price-earnings ratios of 30.4x and 17.5x, respectively.
