Malacca Securities gathered that the automated test equipment segment for ECA Integrated Solution Bhd (ECA) will ride on more repeat orders from electric vehicle (EV) related projects.
“Meanwhile, the expansion of new plant, which has a total production floor space of 11,000 sq ft is expect to commence operations to house all computer numerical control (CNC) machines after having secured the certificate of completion and compliance (CCC) from the local authority,” said Malacca Securities in the recent Technical Focus Report.
With businesses taking aggressive approaches to maintain competitiveness, Malacca Securities expects demand to be supported by the global transitioning towards automation and this should bode well for ECA.
Should the growth momentum be sustained in the coming year, the research house reckons that it may transfer to the Main Board of Bursa Malaysia.
Technically, price has staged a correction for nearly 3 months before staging a swift recovery at end-May 2023. Price has recovered to close all its moving average lines before forming a short-term consolidation.
“Coming closer, price has formed a breakout above RM0.89 and follow-through buying interest was noted above the breakout-point yesterday,” said Malacca Securities.
Price may charge higher to target the next resistances at RM0.955-1.00 with long term target set at RM1.13. Support is pegged at RM0.825 and cut loss is located at RM0.82.
