KUALA LUMPUR (Sept 28): DKSH Holdings (M) Bhd’s share price surpassed the RM5 level mark for the first time since February 2017 on Tuesday after a research house said the counter is set to resume its uptrend.

The counter rose as much as 6.65% or 33 sen to RM5.29 — its highest level since Nov 24, 2016.

At 4.20pm, the stock was trading at RM4.98, for a reduced gain of two sen or 0.4%, but still up RM1 or 25.12% compared with last Monday.

Over the past year, the counter had risen by 71.7% from RM2.90 on Sept 28, 2020.

At its current price, DKSH Holdings — which operates retail outlets selling the Famous Amos cookie — has a market capitalisation of RM785 million.

RHB Retail Research technical analyst Al Emri Izzat Shah Albakri said in a note on Tuesday that DKSH is set to resume its uptrend as it bounced off the 21-day average line to breach the immediate resistance of RM4.78.

“The buying pressure above that level is expected to propel the stock towards the next resistance point of RM5.35, followed by the RM6.00 threshold. However, this expectation will be cancelled if it falls below the support of RM3.82,” he said.

DKSH’s net profit for the second quarter ended June 30, 2021 increased by more than three-fold to RM25.4 million, from RM7.83 million a year ago. Quarterly revenue expanded to RM1.78 billion from RM1.45 billion.

Cumulative first-half net profit jumped 175.86% to RM49.48 million, from RM17.94 million in the January-June period last year, underpinned by unrealized derivative gains from interest rate swap and decline in interest expenses resulting from reduced borrowings.

Six-month revenue rose 11.46% to RM3.54 billion from RM3.17 billion.