Hup Seng Industries Bhd (Hup Seng) is expected to have a follow-through buying interest in the near term, targeting RM0.86 to RM0.88, with a LT target at RM0.90, as the technical readings are positive, according to Malacca Securities.
“Share prices has been consolidating sideways and experienced a breakout above RM0.805. Support is set around RM0.76 to RM0.78, with a cut loss set around RM0.75,” it said today in its Technical Focus note.
Established since 1958, the Hup Seng brand have developed into a renowned brand and has captured stable demand from the consumers, which is one of the trading catalyst for the group’s shares, Malacca Securities said.
Additionally, the research house said the group’s net profit has been consistently positive on the back of strong domestic sales, coupled with strong dividend payout above an average of 70% since 2012.
“Hup Seng has been delivering consistent earnings. In 3Q23, it registered a net profit of RM13 million, up by 49.3% quarter-on-quarter (QoQ) and an increase by 239.4% year-on-year (YoY) on the back of lower input costs and higher revenue.
“Meanwhile, it has achieved a revenue of RM91.2 million, up by 15.5% QoQ, and an increase of 34.2% YoY, supported by stronger domestic sales.
“Hup Seng has delivered an average dividend payout above 70% since 2012. The strong dividend payout provides great value for investors. Currently, the dividend yield stood at 3.7%,” it added.
