HLBebroking:Facvo 目标价 RM1.20

sunflower2007

At RM0.945/share,Favco is trading at an undemanding 6.5x FY10 P/E and 0.85x P/B, substantiallylower than industry average of 11x P/E and 1.5x P/B. Our 6-mth technical targetprice for Favco is RM1.20/share or 1.1x P/B in tandem with its 5-year averageP/B of 1.14x.

After a 6-mth consolidation between 75-85 sen, we saw a technicalbreakout as signs point to returning buying interest lately as Favco’s1-month average daily volume rose to 175k against 3-mth average of 111k.Support levels are RM0.865 (200-d SMA), RM0.84 (23.6% FR from 52-week high/lowof RM1.19 and RM0.73) and RM0.80 (100-d SMA). Cut loss forinvestors is at RM0.87.

开市RM0.945 ，冲到RM1.03