Parkson has gone down all along its way from the highest around RM5.20 to the lowest around RM3.20, due to the slowdown of China economy. The RSI is oversold and amid of the recovery of China economy in this August, the trend has started to rebound. Although there is no major technical signal to reflect a firm uptrend, it is still a good buy for long term investing. Parkson has its business in Malaysia, China, Indonesia, Vietnam and it is planning for Cambodia. It’s a good buy if the price could hit beyond the resistance at the RM3.60- RM3.70 area.
With the RM3.50 buying price, the dividend yield is expected to be 4.6%. The current intrinsic value is expected at RM4.50.