Malaysian-listed Oriental Food Industries Sdn Bhd (“Oriental Food) was established and incorporated in 1978. From our modest beginnings, the company has made its mark in the food manufacturing industry today holding the leading position in the snack food and confectionery industry in Malaysia. Generally it’s products can be divided into four (4) broad categories, which are snack food, wafer, potato snacks and bakery products. The company actually has obtained several certifications in line with it’s quest for optimum quality control procedures, namely MS ISO 9001:2008 and HACCP. The company has also certified by the Malacca State Islamic Department as a manufacturer of ‘Halal’ products.
The Company was recently highlighted in the following Edge Weekly article, as one of the counters that suffered panic selling:
Given its “beaten down” position, is there any further downside risk to this counter?
Technically, its share price has breached below that of its 200D-MA support line, signaling potential downside risk. Nevertheless, support is anticipated at around RM1.47.
Fundamentally, based on a simple desktop analysis, the Company’s current share price (RM1.80) appears to be trading at a premium to its forecasted equity value of RM1.40 per share.
In a nutshell, one may consider this counter for potential trading opportunity if its share price hovers around RM1.40 per share.
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