Mitrajaya Holdings Berhad (stock code:9571) has created for itself an enviable track record of successful projects in construction and civil engineering related fields. Mitra has also played a significant role in major national projects such as the KLIA, KL’s Light Rail Transit System, the CyberJaya Flagship Zone, the Putrajaya Federal Administrative Centre, the East Coast Economic Region, the Iskandar Southern Development Corridor, and numerous other projects. Besides, it is now a multi-national conglomerate with a staff strength of 500+ employees and businesses in a diverse range of industries, among them, construction, property development, international projects, as well as healthcare.
By looking at the past 3 years of Mitra quarter result history, both revenue and net profit increased significantly for the past 12 quarters and this is “incredible”. Its rolling 4 quarters EPS at 13.6, PER below 10.
Under the 11th Malaysia Plan, the government will set aside 260 billion ringgit for development expenditure from 2016 to 2020, the culmination of a strategy to achieve high-income status and that is why no investor/trader can afford to ignore Malaysian construction stocks. Some big projects such as Pan Borneo Highway, Kuala Lumpur-Singapore high-speed line and subway extensions around the capital all are in the spotlight.
From the technical point of view, it triggered a bullish signal today based on major resistance breakout. The price broke above resistance level at around 1.31 with significant volume which suggests the breakout is successful. The MACD is having a bullish crossover above zero centreline while RSI heading upward to 70% level.
Overall, with the mega bonanza theme in Malaysia construction sector and the positive input from fundamental, technical and sentiment. Mitra definitely in the spot light and expected to grab more job wins ahead. “Execution Skill” will determined how much you can grab from Mitra.
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