Morning Call | 10 Dec 2012

FLOWS

Monday, 10 December, 2012

BUY

AXIATA, MAYBANK

SELL

SKPETRO, AMBANK, DAYANG

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

FAVCO (7229)

10/12/2012

RM1.54

BUY

RM1.80

Recent interest in o&g stocks may spill over into related names especially for specialized services like cranes. Expect demand for cranes to receive a boost with anticipated increased order flow in coming months. Group’s revenue came in lower but EPS increased by 16.7% yoy showing that the higher margin jobs taken up by supplying cranes to several o&g fields are bearing fruit. Group maintained its 13% margin for 9mth FYE12. Latest orders to supply offshore crane to Indonesia (PT Pal Indonesia offshore oil Engineering Co) and Technip France for RM89.6mil brings Company’s orderbook to about 800mil. Share price retraced from ytd high of RM1.85 down to RM1.51 and have consolidated around the RM1.60 level but long term moving average suggests stock is poised to move up.  Share price is well supported at around RM1.65 (MA100) level, attractive PER 7x- Buy (RL)

DIJACOR (5401)

10/12/2012

RM1.04

BUY

RM1.20

The company has completed its amalgamation exercise of its major shareholder’s property into the company for RM935m which will increase the group’s landbank to 900 acres. Recently, returned into the black in 3Q2012 recording sales that came in above target of RM765mil for the year. The higher turnover was largely due to the recognition of progress billings from its on-going projects such as Tropicana Grande, Casa Tropicana and Tropez Residence in Johor. Co expects sales figures to continue rising with contributions from Tropicana Metropark (mixed development project) in Subang with a GDV of 6.3bil that will be launched in the near term. In addition, Dijaya is looking into a JV with Penang developer Ivory to take on a mix development project in the Penang World City phase worth over 10bil in GDV. Expect Co to continue being profitable backed by its landbanks in high growth states like Johor and Penang with a growing development value. Currently trading below its rights price of RM1.20, consolidating past few months at 10, 50D SMA levels after establishing a double bottom at RM1.00-BUY (RL)

Calls for Week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

MISC (3186)

03/12/2012

RM4.02

Mid Term BUY

RM4.48

RM4.00

-0.5%

OSK (5053)

03/12/2012

RM1.39

Accumulate

RM1.71

RM1.43

+2.87%

GADANG (9261)

04/12/2012

RM0.60

Trading BUY

RM0.70

RM0.615

+2.5%

PCHEM (5183)

04/12/2012

RM5.66

BUY

RM6.20

RM5.71

+0.88%

CARLSBERG (2836)

06/12/2012

RM12.74

Trading BUY

RM13.60

RM12.86

+0.78%

SIME (4197)

06/12/2012

RM8.97

BUY

RM9.50

RM9.08

+1.3%

PARKSON (5657)

6/12/2012

RM4.60

BUY

RM4.97

RM4.68

+1.8%

ARMADA (5210)

6/12/2012

RM3.77

BUY

RM4.08

RM3.83

+1.6%

YTLPOWR (6742)

7/12/2012

RM1.51

BUY

RM2.00

RM1.52

+0.6%

IJMLAND (5215)

7/12/2012

RM2.08

BUY

RM2.60

RM2.07

-0.4%