UNIQUE - An unique company that benefit from strong Ringgit

UNIQUE-WA

Backgroup:

Unique Fire Holdings Berhad is involved in the assembly, distribution and manufacture of active fire protection systems, equipment and accessories for the built environment. 

Short term catalyst:

1. The extension of its geographical reach to Johor (Distribution centre) and Penang (Light Industrial Factory) will enable the Group to cater and provide support to existing customers, as well as securing new customers in the region which are more data centre (Johor) & semiconductor plants (Penang) region. Data centers and server rooms house complex and sensitive equipment that demands specialized fire suppression systems to protect against fire-related risks effectively. 

https://www.colocationamerica.com/blog/different-fire-supression-systems-in-data-centers

https://uniquefire.com/product-category/fire-suppression-systems/

2. Construction’s value of work done jumped by 20.2% to RM38.9 billion in Q2 2024 (Q1 2024: 14.2%; RM36.8 billion). This growth was driven by strong performances in the civil engineering (25.2%) and residential buildings (19.7%) subsectors is expected to benefit company from the positive momentum of the construction and property development sectors, being the principal growth drivers of the active fire protection systems industry. 

Nearly 59% of the construction sector work done value was concentrated in Selangor, Johor, Federal Territory (Kuala Lumpur, Putrajaya and Labuan) and Sarawak (Company has distribution centres in Johor, Sabah & Sarawak region) 

https://www.bernama.com/en/news.php?id=2328194

3.  Better cost management particularly in the procurement of materials and trading goods due to low steel price and stronger Ringgit performance as company sources raw materials from overseas markets in US dollars.

https://www.thestar.com.my/business/business-news/2024/08/30/ringgit-appreciated-by-25-against-us-dollar-in-july-2024

4. Company forsee the bulk order from manufacturing division, due to 10 years after manufacturing date portable fire extinguishers will be scrapped. 

https://uniquefire.com/product-category/fire-extinguishers/

Long term catalyst:

5. Unique Fire Holdings Bhd has received the Fire and Rescue Department of Malaysia's approval for its A1 rated electric vehicle (EV) car fire blanket. Unique Fire is the appointed authorised distributor for Bridgehill's EV car fire blankets in Malaysia. Goverment plan to have 10,000 chraging stations for EVs by 2025 and each station must have an EV blanket.

https://www.nst.com.my/business/corporate/2024/06/1059041/unique-fire-gets-fire-and-rescue-dept-certification-ev-car-fire

6. The expansion of the 2 new fire extinguisher manufacturing lines is on track and this will increase the yearly output capacity by over 220% from 210,000 to 680,000 cylinders. 

7.  Unique Fire Holdings Bhd has entered into a joint venture agreement with Shanghai Mosafe Equipment Sdn Bhd and its Singaporean unit, Mosafe Protection Pte Ltd, with regards to the establishment of a joint venture company to manufacture, distribution, sale and supply of fire sprinklers across the globe. This process will take around 9 months to 1 year.

https://www.thestar.com.my/business/business-news/2024/08/14/unique-fire-to-collaborate-with-shanghai-mosafe-on-fire-sprinkler-business

Technical Analysis

EP 0.16 - 0.17
SP 0.145
RST 0.195

TP 1 0.225
TP 2 0.245
Expired date: 21/2/2029

a) Trend: Long term up trend

b) Formed Higher Low pattern
c) Support above uptrend line

Disclaimer : The above opinion is never intended to be a BUY SELL CALL. The above article purely for education purpose base on observations, chart and data. Thank you.