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Good morning.
Today, we feature a note on Komarkcorp Berhad (KOMARK) in our FundTech Radar – 14th May 2019. KOMARK is involved in the manufacturing of self-adhesive labels, flexible packaging such as OPP roll-fed and shrink sleeves in the consumer packaging for petrol lubricants, healthcare, foods and beverages, agro-chemical industries, promotion and security market segments. In FY18, its revenues (excluding inter-segment revenue) were made up of approximately 44% local sales vs. 56% oversea sales.
Fundamental Stance
· A loss-making company, due to severe competition in the industry; loss of customers; and high operating costs.
· The trade war between USA and China has caused uncertainties in the global market; as a result, customers have taken a cautious and pessimistic view by reducing their orders.
· Relies on a single large customer group and severe competitive environment could have a material adverse effect on the operation results of KOMARK.
Technical Front
Bearish divergence formation.
Resistances: 0.33/0.35/0.39
Supports: 0.285/0.255/0.225
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
14th May 2019
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
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