Morning Call 30 MAY 12
Flows:
Buys: CIMB, Maybank
Sells: TNB, UEMLand, IJM
1)Benalec (RM1.15): Share price has been consolidating
near lows at the RM1.12-1.13 level. Notice slight pickup in volume in last
2 days with share price looking to move back above the 50MA of RM1.16 and MACD is
cutting up. 1.18 is a neckline of small double bottom. 7 cent upside to target
price 1.25. Company has been awarded reclamation rights for 3485 acres in Tg
Piai and 1760 acres in Pengerang over the course of 10-15 years with possible
participation in Johor's RM60bn RAPID project. Further rerating catalyst should co be awarded more
reclamation jobs in Melaka, Penang and Singapore. Share price trades at a reasonable 8xPE, with a potential
of 50% earnings growth in the following year. Trading buy.
(TYK/LJN)
2) JTiasa (RM8.16): shr px has been consolidating around
the RM8 levels after touching a high of RM10.14 in recent run up. Technically
looks poised for a rebound as MACD is cutting upwards and RSI is ticking up at
34. Current breakdown of profit contribution comes from 65% plantation and 35%
timber. Its plantation landbank is only 4-5yrs old and is expected to see
30-45% growth in FFB production. Expect to play catch up to recent bounce in
CPO px from RM3000/ton to current RM3180/ton. Trades at attractive PER12x -
accumulate.
(LJN)
