The Federal Government and Selangor state government have signed a memorandum of understanding on the restructuring of the water industry in Selangor, which includes construction of the much-needed Langat 2 water treatment plant.

Salcon may scale new high after holding above the 200-day MAV line.
Traders may opt to purchase the stock if it stays above MYR0.70 today, with a close below MYR0.68 as a stop-loss.
The price target is MYR0.80 if the MYR0.75 resistance is broken.
The may be Special Dividend in waiting.

Magnum

Magnum
Maintain BUY with revised DCF-based target price of RM3.42 (from RM3.52 previously), which implies 2015F PE of 15x and dividend
yield of 6%. Backed by resilient cash-based operations, Magnum will continue to appeal to dividend hungry investors.


MPHB Capital (MPHB MK)
Technical Buy
Last price: RM1.88
Resistance: RM2.07
Support: RM1.78
BUY with a target price of RM2.07. MPHB has breached its strong
resistance of RM1.80 on 20 Feb 14. It was lingering between
RM1.85 and RM1.94 over the past four days. We opine that its
long-term uptrend is intact. A successful breakout from RM1.95
would see MPHB to test its resistance of RM2.07 in medium term.
A stop-loss can be placed at RM1.74.

Top Glove (TOPG MK)BUY
(Maintained)
Share Price RM5.80
Target Price RM6.42
Upside +10.6%
Temporary rebound in latex prices expected.
Firmer US dollar a boost to bottom line.
Positive on plans to hive off loss-making China plants.
Delisting of subsidiary Medi-flex had received nod  

Yee Lee Corp (YEE MK)
Technical BUY with +21.7% potential return
Last price : RM1.43
Target Price: RM1.46, RM1.74
Support : RM1.33
Stop-loss: RM1.31
BUY with a target price of RM1.74 with stop
loss placed below RM1.31. Yesterday’s 10-sen
gain on the back of a higher trading volume of
3.5m shares (vs 20-day average of 0.5m) was
seen as a genuine breakout following a
successful closing above the immediate
resistance of RM1.40 (now support). We
expect a bullish crossover in MACD to appear
and that rising momentum may translate into
fresh buying interest that could drive the share
price higher. Immediate resistance can be
seen at RM1.46; violation of this level could
catapult the share price toward our projected
target of RM1.74 in the medium term.

Luxchem Corp (LUXC MK)
Technical BUY with +12.5% potential return
Last price : RM1.44
Target Price : RM1.56, RM1.62
Support : RM1.40
Stop-loss: RM1.36
BUY with a target price of RM1.62 with a stop
loss below RM1.36. LUXC’s share price
retraced from the high of RM1.46 on 13 Jan 14
before recovering gradually in the last 4-
weeks. Yesterday LUXC recorded a 6-sen gain
as the share price gapped up on the back of a
higher trading volume of 0.55m shares (vs 20-
day average of 0.05m), signalling the creation
of a new up-leg. Despite the failure to close
above RM1.46 yesterday, the upward
movement should continue given the positive
development in MACD and backed by a
surging momentum. Thus, we peg our upside
target at 1.61x Fibonacci extension level of
RM1.62 over the medium term.

Malton (MALT MK)
Technical BUY on pullback with +25.0%
potential return
Last price : RM0.905 (RM0.860-RM0.900)
Target Price : RM1.01, RM1.10
Support : RM0.850
Stop-loss: RM0.820
BUY on pullback with a target price of RM1.10
with a stop loss placed below RM0.820.
Following a breakout from the “falling wedge”
formation on 18 Feb 14, MALT’s share price
looks set to run on a bullish course over the
medium term amid a successful closing above
the 50.0% Fibonacci retracement level of
RM0.890. However, given the steep rally of 9%
in the last three days, we expect profit-taking
activity to drive the share price slightly lower.
This is consistent with a downtick in RSI, thus
we recommend investors accumulate within
the RM0.860 to RM0.900 region. MALT may
resume the uptrend once the selling pressure
has eased. We peg our upside target at
RM1.10 which is equivalent to 1.38x Fibonacci
extension level over the medium term.