OCK Group Berhad delivered a higher net profit achieving RM39.4m (+17.1% YoY) from RM33.7m on the back of a higher YoY revenue.
Anticipating a surge within the Malaysian telecommunications industry.
Malacca Securities (MSSB) Technical Focus note today (Apr 5), said the industry outlook is supported by several ongoing initiatives such as the second phase for Point of Presence (PoP) and Jalinan Digital Negara (Jendela) as well as the 5G spectrum roll out under Digital Nasional Berhad (DNB).
OCK will benefit from DNB’s plans to increase 5G sites in urban areas while improving network coverage rural areas.
Growing contribution from overseas presence. OCK is positive on higher overseas contribution from (i) Vietnam – tower network expansions, (ii) Indonesia – strong demand for network management services, (iii) Laos – OCK’s recent entry into Laos, coupled with general increasing demand from the advancement of 5G technology.
Technical Outlook
Share price has been consolidating around RM0.62 and last closed at RM0.615. As the technical readings are positive, MSSB expects follow-through buying interest to be seen in the near term, targeting RM0.66 -0.67, with a LT target at RM0.69.
Support is set around RM0.59-0.595, with a cut loss set around RM0.57.
Company profile
OCK is principally involved in the provision of telecommunications network services. The Company’s product/service offering comprehensively covers services from the telecommunications network services market: network planning, design and optimisation, network deployment, network operations and maintenance, energy management, infrastructure management, and others.
