SMRT Holdings Bhd has been tagged with a 'Trading Buy' at HLIB Research.

In a note this morning (Jan 22), it said SMRT was currently trading near its uptrend support region of RM0.99 -1.03, with indicators on the mend.

In the wake of the higher lows pattern, it said a decisive breakout above RM1.05 will spur prices higher towards RM1.11-1.17-1.20 territory. Cut loss at RM0.91.

On the company, the research note added; "We anticipate the robust performance observed in 1QFY24 to extend into 2QFY24, driven by strong site deployments given that utility companies typically utilize most of their capex in second half of the year.

"Looking forward, we anticipate increased site deployment from utility companies in Malaysia and Indonesia, alongside ATMI Indonesia."

It said the strategic shifts were expected to be advantageous for SMRT, providing a consistent pipeline for site deployments and contributing to the proliferation of recurring income base for the group through its managed services.