TRC SYNERGY BHD (TRCG:KL) sees flat revenue growth in FY19 on fewer jobs

TRC SYNERGY BHD (TRCG:KL) sees flat revenue growth in FY19 on fewer jobs

TRC SYNERGY BHD (TRCG:KL) sees flat revenue growth in FY19 on fewer jobs

Construction company TRC Synergy Bhd expects to post flat revenue growth in the current financial year ending Dec 31, 2019 (FY19) on fewer construction jobs.

Executive director Datuk Abdulaziz Mohamad said the group has set a lower tender book replenishment target of RM2 billion this year. Last year, it had bid for about RM5 billion worth of contracts and managed to secure close to RM600 million.

“We are not that big. So, our target has always been conservative. We are looking at (achieving) between RM600 million and RM700 million in turnover a year. Last year we achieved that (target) and this year we expect the same,” he told reporters after the group’s annual general meeting today.

TRC Synergy is banking on higher contribution from its property development segment this year.

Abdulaziz said the property development segment is expected to contribute up to 25% to the group’s total revenue, from 10% currently.

The rest will come from its construction business, he added.

“Our joint-venture project with Prasarana Malaysia Bhd in Ara Damansara has a gross development value of RM1 billion over the next five years,” he said.

In a separate statement, TRC Synergy managing director Tan Sri Sufri Mohd Zin said the group is well positioned for sustained growth with its unbilled order book in hand of RM2.5 billion, and potentially new contract wins from both peninsula, as well as Sabah and Sarawak.

“At TRC Synergy, we still have plenty of room to grow from strength to strength, riding on the group’s proven track record and implementation capabilities throughout all these years to where we are as one of the key player, a force to be reckoned within the industry.

“With the many sizeable infrastructure projects that are coming on stream over the next few years, such as the East Coast Rail Link, Coastal Road Project (Sarawak), Second Trunk Road Project (Sarawak), Sarawak Water-Grid project and Pan Borneo Sabah, among others, and barring any unforeseen industry and market circumstances, the group is optimistic of the opportunities going forward,” he said.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 0.65.

The projected upper bound is: 0.68.

The projected lower bound is: 0.58.

The projected closing price is: 0.63.

Candlesticks

During the past 10 bars, there have been 1 white candles and 7 black candles for a net of 6 black candles. During the past 50 bars, there have been 16 white candles and 23 black candles for a net of 7 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 33.3333. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.81. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 40 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -67. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 8 period(s) ago.

Rex Takasugi – TD Profile

TRC SYNERGY closed unchanged at 0.630. Volume was 94% below average (consolidating) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
0.630 0.640 0.625 0.630 229,700

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 0.63 0.68 0.57
Volatility: 25 50 53
Volume: 167,570 1,008,890 2,284,968

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TRC SYNERGY is currently 11.4% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TRCG.KL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TRCG.KL and have had this outlook for the last 32 periods.

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