Malaysian-listed Chin Well Holdings Berhad, an investment holding company, engages in the manufacture and trade of fastening and wire products primarily in Malaysia, Vietnam, and other Asian and European countries. The company’s products include screws, nuts, bolts, and other fastening products, as well as galvanized wire, annealing wire, hard drawn wire, PVC wire, bent round bar, and BRC wire mesh products.
As per the graph below, there may be potential pullback opportunity trade:
- Possible pullback entry at 1.60
- Target exit price at 1.85
- Stop loss at 1.36
- Expected Return-to-Risk Ratio = 1.04R
Backing up the pullback entry:
1. Declining PE (i.e valuation not unreasonably overstretched)
2.Declining P/NTA (i.e valuation not unreasonably overstretched)
3.Balance sheet clean (i.e net cash)
4.Expected positive prospects by Management
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