by SHAFIQQUL ALIFF / pic source jademarvel.com.my
JADE Marvel Group Bhd (Jadem) share price rose one sen to 91.5 sen yesterday as Mercury Securities Sdn Bhd stated the counter could trend higher and hit a target price of RM1.08 on sustained investor interest.
The building materials supplier’s share price has been on an uptrend since July last year to hit a year high of 93.5 sen on April 26, 2022, before undergoing a correction to a low of 85 sen on May 6, before fresh buying saw the counter close at 91.5 sen today.
“We think there is a potential continuation supported by a tweezer top, strong momentum (RSI > 55). With lower volatility, we think that prices could potentially trade with lesser downside risk. Trading within 2SD, we project a 10% upside to the current price, expect exponential moving averages and simple moving averages to hold,” the broker stated in a technical report today.
According to its recent filing, Jadem’s 60% owned subsidiary, Jadem White Sdn Bhd, formed a joint venture (JV) with MTG Timur Sdn Bhd to tap opportunities in property construction, construction management and property development.
Jadem, however, does not expect the JV to constitute a diversification of the existing business of the group as it is expected to account for more than 25% of the net assets of Jadem nor for it to contribute 25% or more of the net profits of the group.
In January, Jadem inked a memorandum of understanding (MoU) with ShangDong Xinhai Mining Technology & Equipment Inc to explore opportunities in the local mineral resources sector in Malaysia including the possibility of building a benchmarking project for the general contracting of high-quality mineral processing.
The proposed collaboration aims to establish a one-stop centre in Kuantan, Pahang, in six-to-nine months after the MoU.
The scope of services targeted includes the consultancy services in the management and operation of large-scale industry mines, as well as building and training technical teams for clients and setting up of mineral processing laboratory.
Jadem is also venturing into the healthcare space through the purchase of I Wellness International Sdn Bhd.