SUPERMX (7106) - Technical and Fundamental Analysis

Technical Analysis

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Long Term View

- SUPERMX shares prices have tried 4 times to breakout RM1.386 since Y2010 so we believe RM1.344 is a significant price level. - Meanwhile, it starts on a long term upward trend in Dec 2014 but there is a discontinue period in Jan 2017. (PS: It is still an upward trend due to SUPERMX shares price don't drop lower than previous low RM0.820)

- After a short-term drop off from the upward trend, EMA20-EMA240 entangled in Jan 2018 and challenge the bottom of an upward trend with retracement back to knot areas.

- SUPERMAX shares prices seen as a bullet train to reach a historic high of RM2.273. There is a significant volume on Aug 30, 2018, which is a red flag in technical analysis so RM1.645 is a strong resistance.

- Thus, any re-bounce of SUPERMX shares price unable to challenge the previous high and there is support level RM1.438.

Short Term View

- After a consolidation period, SUPERMX shares price breakout the necklace line on Nov 21, 2019. and it failed to recover the shortfall in the next 4 trading days.

- If SUPERMX share price unable to trade above RM1.344, we foresee it will continue to decline further in the short-term with 20% lower than current shares price.

- Resistance (2): RM1.645

- Resistance (1): RM1.438

- Support (1): RM1.344

- Support (2): RM1.209


Fundamental Analysis

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- We have no doubt on SUPERMX company performance with double-digit ROE and PE lower than 10x

- So we don't really drill further into other financial ratios.

- With the latest quarter financial result, we conclude that the fair value of shares price at RM1.331 and/or RM1.190 which is based as below:-

(1) Current debt level - RM421M

(2) Cash & Cash Equivalent RM189M

(3) Last Q4 EPS - RM0.115

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