Galaxy International: Yongda Group is also a concept stock for datacenters, and its incentive caused the stock to rise by 14%.

A report released by Galaxy International Securities today stated that the recent investments in several water affairs projects, including the Rasau water supply plan in Selangor, the Lorong 2 water filtration plant plan, and the Perak-Penang water supply plan, are all bullish for the Yongda Group.

As the regional market datacenter hub, the group has just completed a contract related to a datacenter in Johor with a total value of 7 million ringgit.

"We believe that such contracts will continue to come in!"

In addition, local infrastructure projects are expected to accelerate in the second half of 2024, thereby boosting demand for low-carbon steel, which will also benefit Yongda Group.

Furthermore, the active construction sector will drive the demand for metal mesh, a product that is a major revenue contributor for Yongda Group, accounting for 40% of the fiscal year 2023.

Supported by various bullish factors, analysts expect Yongda Group's performance in the second quarter to achieve strong year-on-year growth in a somewhat challenging environment.

Galaxy International has also significantly raised its profit forecast for the group, with the target price also being revised up to 1.70 ringgit, rated as "shareholding".

Yungdada Group was also greatly encouraged today, with the stock rising as much as 16 sen this morning, or 13.91% to 1.31 ringgit.

As of 4 p.m., the stock was trading at 1.30 ringgit, up 15 sen or 13.04%.

It is worth mentioning that the group had earlier proposed a bonus issue of shares at a ratio of 4 to 3, with the bonus issue plan ex-date set for next Thursday (8th).

After announcing the distribution of bonus shares, the stock price has experienced a strong uptrend. So far this year, the stock has risen by nearly 70%.