JTIASA (4383) - Fundamental & Technical Analysis


Technical Analysis

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- JTIASA shares price has been slashed by 85% since its historical high which indicated Palm Oil counters' shares price is led by economic cyclical.

- It is not recommended to hold for the long term. More suitable to speculate method due to their company performance has a high correlation with Palm Oil price movements.

- Since Mar 02, 2018, JTIASA further decreases by 58% due to Palm Oil price traded lower and low (Below RM2578 per MT)

- However, we notice Palm oil was rebound from RM2,450/= per MT and closed at RM2,469/= in May'19. Furthermore, Palm Oil price is able to sustain RM2,345/= per MT in the next few months.

- The positive movement of Palm Oil price definitely able to sustain JTIASA company performance in the coming quarters.

- JTIASA shares price challenged RM0.655 twice on Feb 21, 2019, and Apr 04, 2019 respectively so we set RM0.655 as a significant pricing level. (Num 1 & Num 2)

- Furthermore, JTIASA shares price has seen like to complete the left hand of double bottom (Shape-W) with a higher high level (Point A & Point B).

- There is a retracement after a breakout level of RM0.525 (Point C) so RM0.525 becomes an immediate support level.

- In mid-term, we strongly believe JTIASA will try to challenge RM0.60 due to JTIASA monthly candle- chart RSI just recover from an oversold level with expectation of Palm Oil trade above RM2,500/= per MT.

- Resistance level (2): RM0.655

- Resistance level (1): RM0.600

- Support (1): RM0.525

- Support (2): RM0.493

Fundamental Analysis

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- Based on the summary of JTIASA company performance, there is no way to invest in JTIASA for value investment due to EPS/ROE/PE appears negative position currently.

- Furthermore, the total debt RM956M more than the total company capital RM550M as per financial statement Y2019.

- We also notice the Account Payable increase by 41% compared to the Account Receivable decrease by 19% in financial Y2019. It a serious red-flag.

- JTIASA also unable to generate a positive income from their core operating activities as well


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