Morning Call 8 August 2012
Flows:
BUYS: Maybank, Sime
SELLS: IJM, TNB, TM
Technical Stock Alert:
KEURO (RM1.12) - Share price has bottomed out around RM1
lvl and has since been climbing up on renewed expectations of resolution of WCE
concessions agreement and is on cusp of breaking above the LT trendline of 200d
SMA lvl of RM1.13 which will create a breakout of stk back to at least recent
high of RM1.45. To recap, its 64.2% owned West Coast Expressway SB obtained
approval from the Public Private Partnership Unit of the PM's Deptn to buil a
RM7.07bn highway linking Banting to Taiping.
The highway will cover 316km of which 224km will be
tolled. The project is awarded based on a BOT basis with a concession period
covering 60 years. The recent announcement by IJM to acquire a 20% stake in
West Coast Highway S/B with KEuro holding 80% has helped renew confidence in
the implementation. Trading Buy (LJN)
FIMACOR (RM6.60):
Company is in the business of manufacturing and trading
of security documents mainly for the government. FIMACOR offers 4.5-5.3%
dividend yield and is sustainable from its operating cash flow of approximately
RM100mil (RM1.21/share). Company also holds RM215mil in cash. Its 80% owned
subsidiary has 6,000ha oil palm plantation in Kalimantan with an average age of
only 7years. We believe dividend could be bumped up given its parent co (KFIMA)
would require higher CAPEX RM35-45mil for its Miri plantation and expansion of
its tuna business. FIMACOR could potentially be privatised to streamline the
groups' business. Vol has started picking up recently with weekly MACD starting
to cut upwards. Trades at attractive PER 7x, P:B 1.2x. - Trading Buy.
(TYK/LJN)
