Will ANNJOO change to Uptrend?Ann Joo Resources Bhd.MYX:ANNJOOamirulshahAnn Joo Resources Berhad is Malaysia's leading steel producer specialising in long steel products for the construction and infrastructure sectors, operating through an integrated Blast Furnace–Electric Arc Furnace (BF-EAF) hybrid technology — the first and only such combination in Southeast Asia — giving it a structural cost advantage over pure EAF peers. The fundamentals are currently a turnaround story rather than a stable earner. Net losses deepened to RM54 million in Q2 2025 and cumulative losses for the first half of FY2025 reached RM132.9 million, with revenue falling 13.55% year-on-year, primarily due to lower selling prices across upstream and downstream steel divisions. However the recovery thesis hinges on two things. First, Malaysia's rebar prices staged a significant rebound from late July 2025 onwards, tracking Chinese steel price movements. Bursa Malaysia Second, ANNJOO secured a major RM297.9 million contract from Tenaga Nasional Berhad for the design and build of ECRL feeder station electrification works — marking its entry into the utility-infrastructure sector, with TA Securities maintaining a Buy call and a target price of RM1.64. As of March 5, 2026, the stock was trading at RM0.44 TRADING ECONOMICS, suggesting the market is still pricing in uncertainty, which creates potential upside if the recovery materialises. ANNJOO is currently trading at RM0.675, having fallen 3.60% week-on-week and 4.29% month-on-month, with a one-year decline of 29.30%. The stock's beta coefficient stands at 1.99 — meaning it is nearly twice as volatile as the broader market. Key technical levels to watch: Support levels: RM0.605 and RM0.645. Resistance levels: RM0.725 and RM0.765, with Mercury Securities noting that a breakout above the 50-day EMA triggered a bullish signal when volume surged. The all-time low was RM0.40, recorded on March 19, 2020, which acts as the deepest structural support. The all-time high was RM4.335. Analyst consensus target: RM0.76 per share based on current analyst estimates. Three near-term newsflow drivers that could re-rate the stock: Penang LRT — analysts highlight that ANNJOO is ideally positioned to supply steel for the Penang LRT project, given its main steel plant in Prai, Penang — just 6km from the project hub and 4 minutes from Penang Port. Infrastructure supercycle — Malaysia's construction market is being driven by major government investments in highways, rail networks, ports, and airports, with Kuala Lumpur, Penang, and Johor Bahru attracting significant infrastructure spending in 2026. Localisation policy — the government is actively working with the Construction Industry Development Board and Works Ministry to mandate greater use of local steel in government projects FinancialContent — a direct tailwind for ANNJOO as the dominant domestic long-steel producer. Risk: The increase in power tariffs announced in late 2024 remains a burden on the iron and steel sector , as EAF-based steelmaking is electricity-intensive. This is the key headwind to watch. Entry zone: RM0.67–0.69 (on breakout + volume) Add position: RM0.72 if breakout confirms Target 1:RM0.76 (analyst consensus) Target 2:RM0.85–0.90 (technical resistance zone) Stop loss:RM0.62 (below key support) Risk/Reward ~ 1:2.5 Timeframe: 4–8 weeks swing trade