JHM Consolidation a ‘technical buy’ at Kenanga Research

MAIN-market listed JHM Consolidation Bhd has received a ‘technical buy’ call at Kenanga Research, with a stop loss pegged at 64.5 sen.

Following a pullback from the recent high of RM1.35 in August 2022, the research house said JHM’s share price has trended downwards to hit a low of 70 sen twice, possibly paving the way for the formation of a double-bottom reversal pattern ahead.

It believes that the share price, which ended at 71.5 sen yesterday, will likely rebound backed by an anticipated reversal from the lower Bollinger Band and an unwinding of the stochastic indicator from the oversold area.

Hence, the stock could rise to challenge its resistance levels of 79 sen (R1; 10% upside potential) and 89 sen (R2; 24% upside potential).

JHM is primarily engaged in two key segments. First, electronics business in the manufacture and assembly of surface mount technology of automotive rear, interior and front headlamp lighting and motor controller. Second, mechanical business where it provides one-stop solutions from fabrication of tooling, design to final assembly and test of LED lighting modules/applications, microelectronic components as well as precision mechanical parts.

Earnings-wise, the group recorded a net profit of RM0.9 million, down 71% quarter-on-quarter (QoQ) in 3QFY22, bringing its cumulative 9MFY22 net profit to RM20.4 million. — TMR