KUALA LUMPUR: Thong Guan Industries Bhd, which has been on an uptrend, rose to its highest in nine months in early trade Thursday.
The plastic packaging manufacturer added 2.51%, or seven sen to RM2.86, its highest since Dec 2, 2020. Year-to-date, the counter has appreciated 14.4%.
“If a breakout happens, the positive momentum will lift the stock towards the next resistance of RM3.20 before reaching the historical high of RM3.35.
“However, falling below the RM2.65 support – forming a ‘lower low’ bearish pattern – may trigger a downtrend,” RHB said.
Thong Guan’s net profit rose 24.9% to RM25.6mil in the second quarter ended June 30 from RM20.5mil in the same quarter last year.
In the second quarter, its revenue jumped 34.7% to RM307.3mil from RM228.03mil a year earlier.
In the first six months, Thong Guan posted a net profit of RM47.32mil on revenue of RM589.43mil.
On Aug 12, Prudential plc via Eastspring Investment Bhd acquired 18.96 million shares or a 5.005% stake in Thong Guan.