Quick take: Lion Industries falls 7% despite improved earnings


KUALA LUMPUR: Shares in Lion Industries Corp Bhd were hotly traded this morning with over 47 million shares done, making it one of the most actively traded counters on Bursa Malaysia.

The counter fell 7.22%, or seven sen to 90 sen. It has appreciated some 30% so far this year.

In the second quarter ended Dec 31, 2020, Lion Industries posted a net profit of RM118.24mil against a net loss of RM98.83mil in the same period a year ago. Revenue was higher at RM681.32mil from RM641.72mil previously.

In the first six months, it posted a net profit of RM82.78mil on revenue of RM1.39bil.

In its technical watch report, Kenanga Research has a “trading buy” on Lion Industries.

“We believe the group would benefit from record steel prices (currently hovering at 5-year high) as circa over 50% of its revenue are contributed by the steel segment.

“At the bottomline level, the group’s steel division has turned from a loss of RM1.6mil in 1QFY21 to a net profit of RM143,000 in 2QFY21,” Kenanga said.

Quarter-on-quarter, Lion Industries’ revenue has decreased marginally to RM681.3mil in 2QFY21 due to lower sales volume on steel products.

“Chart-wise, the stock has rallied since December last year following the completion of the ‘saucer pattern’. Since then, the stock has been treading above its 20-Day simple moving average (SMA) line.

“Given the prevailing positive signs from all key SMAs, we believe the stock will continue its upward momentum to trend higher ahead,” Kenanga said.

The research house said resistance levels are set at RM1.10 (R1; +13% upside potential) and RM1.20 (R2; +24% upside potential). Its stop loss level is at 84 sen.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Lion Industries

   

Next In Business News

Pharmaniaga appointed sole distributor of Baraka in Malaysia
FBM KLCI likely to trade higher next week
Aramco agrees US$12.4bil deal to sell stake in pipelines
Solar in Malaysia - Challenges, and too much of a good thing?
CPO futures to see volatile trading next week, eyes on MPOB data
Pfizer, BioNTech seek US emergency nod for COVID-19 vaccine in adolescents
Eyes on next generation as Singapore succession is thrown into question
Oil price falls, ends week about 2% lower on supply increase, new lockdowns
BlackRock, Mustier's blank-check firm eye Credit Suisse fund management arm
GLOBAL MARKETS-S&P 500, Dow scale new heights, Treasury yields rise on strong inflation data

Stories You'll Enjoy


Vouchers