Shengao Resources (SERNKOU, 7180) aims to hit RM1.00 by 2025?

Shenggao Resources' recent stock price trend has shown a certain level of stability. Combining technical and fundamental analysis, perhaps, this can provide investors with an observational window.

From a technical perspective, the stock price of Sheng Gao Resources is currently stable at around RM0.865, forming a sideways consolidation pattern. From the chart, it can be seen that the trading volume has decreased in the past few months, which may indicate a cautious market sentiment. However, the MACD indicator shows that selling pressure is gradually weakening, and if it breaks through the resistance at RM0.88 in the short term, it may form a new upward momentum.

In terms of support, RM0.84 is a key psychological support range. If the stock price can hold this position, further upside potential will become clearer. It is important to note that if the trading volume continues to increase, it will better support a price breakout from the current range.

From a Fundamental Analysis perspective, the timber-related Industry is gradually recovering from past challenges, especially in Sheng Gao Resources' main export market, the USA, where the Furniture market has recently shown signs of recovery. According to market research, US home sales and furniture demand are slowly picking up, and Sheng Gao Resources, as a company deeply involved in timber processing and furniture manufacturing, is clearly benefiting from this revival trend.

The company's previous quarterly performance has demonstrated stable profit-making capabilities, while also showing improvements in cost optimization and efficiency enhancement. Despite being affected by global economic fluctuations, Sheng Gao Resources has successfully maintained the stability of its core Business amid intense competition.

With the gradual recovery of the timber processing Industry and the revival of demand for furniture and wood products in the USA market, Sheng Gao Resources is expected to further expand its market share. In addition, Malaysian exporters may benefit from the global trend of diversified supply chains, especially within the ASEAN region.

Combining technical and fundamental analysis, the current stock price of Shenggao Resources is below average levels, potentially providing investors with a long-term holding opportunity. Although short-term overall market fluctuations still need to be monitored, from a broader perspective, the company's position in the industry recovery and continuously improving fundamentals may bring stronger growth momentum in the future. Investors are advised to continue monitoring changes in volume and future quarterly performance.