KUALA LUMPUR: Bahvest Resources Bhd's outlook remains bright, backed by the recent surge in global gold prices, said Rakuten Trade Research.
The research house said in the first quarter (Q1) of the of the financial year 2024 (FY24), Bahvest has produced over 150 kilograms of gold but sold only 65.87 kilograms, leaving a surplus inventory that could be sold at higher prices amid the current gold price rally.
"With increased mining production and the continuing upward trend in gold prices, Bahvest is set to capitalize on these favorable market conditions," it said in a note.
Meanwhile, Rakuten said Bahvest's share price has surged 26 per cent since its last technical buy call on March 25, 2024.
The firm said Bahvest is poised for a potential bullish breakout from the U-shape pattern, targeting to surpass the neckline of 61sen.
"In view of the increasing trading volume and share price pulling further away from all the EMAs, we believe the stock has a decent opportunity to experience the breakout.
"In the event it breaks above the 61 sen neckline, this will improve buying interests and lift the stock towards the subsequent level of 63 sen (R1), followed by 70 sen (R2).
"On the downside, stop-loss is set at 52 sen," it added.
Bahvest is a gold mining company whose gold mine is located in Tawau, Sabah.
Bahvest's major shareholders are Innosabah Capital Holdings Sdn Bhd, with an 8.2 per cent stake, followed by Mohd Amir Masry (4.89 per cent) and Leong Kam Heng (4.66 per cent).
For the first quarter ended Dec 31, 2023 (Q1 FY2024), Bahvest made a net profit of RM11.09 million on a revenue of RM19.85 million, driven by the sale of 65.87kg of gold and 92.36kg of silver.
Bahvest changed its financial year-end to September 30 from March 31 in August last year.
