Business Background
Sycal Ventures Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, operates in three segments: construction, which includes civil and construction works; property development, which includes housing development, and manufacturing and others, which include manufacturing and trading of ready-mix concrete, trading in building materials, leasing of aircraft parts and equipment, provision of hotel management services and investment holding.
Its subsidiaries are Sycal Berhad, Sycal Properties Sdn. Bhd. and Sycal Resorts Sdn. Bhd. In addition, the Company has 13 indirect subsidiaries. Operations are carried out in Malaysia and Hong Kong.
Financial
Technical
Stock started to soar on 3/4/2015 from RM0.40 to RM0.53 and then retraced back to RM0.45 which was a healthy correction. After that, it started to go uptrend again and closed at RM0.485 on 15/5/2015. Also, volume remains low which is a good sign for buyers. Strongest support at RM0.40 while resistance at RM0.53.
Summary
Strategies and priorities for the 11th Malaysia Plan will be presented on May 21. Based on history, the sector that will be bullish after that is Construction. Fundamentally, revenue increased from RM100m to RM400m and net profit from RM2m to RM23m in FY2011 to FY2014 respectively. However, net profit in FY2007 = negative RM165m which explain why there was no dividend payout, even though the company was performing well after the huge losses. Despite all that, SYCAL is one of the best penny stocks in construction sector. If you are not a risk taker, take a look at GADANG or MITRA.
Stockhuat 