FLOWS
|
Wednesday,
12 September 2012
|
BUY
|
AXIATA,
PBBANK, MAXIS
|
SELL
|
YTLC,
BENALEC, SCOMI
|
Stock Alert
|
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STOCK
|
DATE
|
PRICE
|
BUY/SELL
|
TARGETPRICE
|
CIMB
(1023)
|
12/9/2012
|
RM7.17
|
Accumulate
|
RM7.47
|
CIMB
As
sentiments on the M’sian market in the immediate term are bearish and charts
are ugly due to the fear of the general election being called soon. It is
binary in nature coz if there’s a denial, and then there will be a sharp
rebound with liquidators at current level regretting their decisions. Hence,
cash neutral positioning may be an easier call with this paired trade -
accumulate CIMB on weakness and sell Maybank to fund this acquisition. This
is due to the following reasons:
1) At 7.17, CIMB has retraced 9.4% from its recent high
of 7.91 while Maybank (at 9.13) is 1.3% from its high of 9.25
2) Both are financial big cap GLCs hence logically
should have the same risk if there is any change in the ruling govt
(probability is small at this juncture). But market is currently pricing CIMB
as having a higher risk profile. This perception is not realistic as
CIMB is controlled by Hashanah, the govt investment arm, hence assured of
govt support no matter which political party is the ruling govrt.
3) With the government pump-priming projects, there
will be significant cash raising activities in the capital market. CIMB will
be better equipped to take advantage of this situation with their strength in
the investment banking and fixed income division.
4) CIMB has better coverage and traction from the
regional markets and hence would be in a position to take advantage of the
increased volume and activities brought about by the recent stimulus from
central banks & govts.
5) Normally, CIMB trades at premium valuation to
Maybank but currently CIMB is cheaper with PER of FY12 & FY13 of 12.5x
& 11.1x versus Maybank’s 13.5x & 12.5x.
(PT)
|
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SPSETIA
(8664)
|
12/9/2012
|
RM3.57
|
BUY
|
RM 3.86
|
SPSETIA (RM3.57) - the stock is showing signs of
moving off its lower end of its trading range after touching RM3.49 a month
ago. With recent clarity on the Battersea Power Station Project, investors
are more comforted on the project and the value enhancement to the group.
Recall that it holds a 40% in BPS with Sime 40% and EPF 20%. The 39 acre site
was acquire for 400m pounds or a reasonable 235 pounds/sq ft. With a GVD
projection of 8-10bn pounds, this would substantially boost SPSetia’s already
significant group GDV of RM55bn. We believe the share price will at least be
maintain above these levels ahead of a proposed 15% private placement to help
finance BPS. Domestic launches have
continued to consistently meet strong demand despite its founder further
paring down his stake in June. BUY on expectations of the group reclaiming
its premium position as the Malaysian property market leader. Initial target
of RM3.86.
|
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Calls for Sept Week 1
|
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STOCK
|
DATE
|
PRICE
|
BUY/SELL
|
TARGETPRICE
|
HLI
(3301)
|
7/9/2012
|
RM4.30
|
Accumulate
|
RM 5.00
|
COASTAL
(5071)
|
7/9/2012
|
RM1.79
|
Trading
BUY
|
RM 1.92
|
SKPETRO
(5218)
|
7/9/2012
|
RM2.30
|
Trading
BUY
|
RM 2.50
|
PARKSON
(5657)
|
7/9/2012
|
RM4.50
|
Trading
BUY
|
RM 4.70
|
MISC
(3816)
|
7/9/2012
|
RM4.12
|
Trading
BUY
|
RM 4.54
|
AIRASIA
(5099)
|
7/9/2012
|
RM3.38
|
Trading
BUY
|
RM 3.58
|
GTRONICS
(7022)
|
10/9/2012
|
RM1.45
|
Trading
BUY
|
RM1.60
|
ALAM
(5115)
|
10/9/2012
|
RM0.51
|
BUY
|
RM0.56
|
TENAGA
(5347)
|
11/9/2012
|
RM6.75
|
BUY
on weakness
|
RM7.00
|
FGV
(5222)
|
11/9/2012
|
RM4.69
|
BUY
on weakness
|
RM5.00
|
