Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 14): Hong Leong Investment Bank expects CTOS Digital Bhd to stage a downtrend reversal soon, pending a double bottom formation as indicators are showing uptick bias.

In a technical tracker note on Monday (Feb 14), the research house said CTOS’s medium- to long-term prospects will continue to be supported by the huge growth potential of the ASEAN credit reporting industry, underpinned by a faster growth of a 13.2% compound annual growth rate (CAGR) from 2021-2025 (based on IDC) against the developed countries (the US: 7.5%; the UK: 5.3%) and the ASEAN region (10.8% between 2021 and 2025 to RM1.61 billion).

It said this is mainly driven by the combination of increasing demand for credit in ASEAN and low penetration in the credit reporting industry (Malaysia’s credit reporting revenue per capita: RM6.90; the US: RM84.3).

“A successful breakout above its neckline of RM1.85 will spur the price towards the RM1.90-RM2.10 territory.

“Cut lost at RM1.66,” it said.

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