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M+ Online Technical Focus - 21 Sep 22
BP Plastics Holdings Bhd: Expansion progressing well
Trading Catalyst
• A specialty plastics packaging manufacturer with more than 30 years of experience in the industry and has close to 700 customer base.
• To commission the 10th Cast Stretch Film machine to boost production by additional 11kMT/m in 1Q23 amid the rising demand.
• Softening of resin prices amid the increasing new supply stream and weaker demand from China bodes well, given that ASP has yet to retrace in tandem.
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.49 to target the next resistances at RM1.60-RM1.70 with long term target at RM1.88.
Technical View
(i) BPPLAS (S: RM1.4, R: RM1.60-1.70, LT TP: RM1.88, CL: RM1.39)
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss
Source: Bloomberg, M+ Online
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