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FLOWS
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Friday, 1 March, 2013
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BUY
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AFFIN, CIMB, SKPETRO
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SELL
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TENAGA, DIGI, GENM
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STOCK ALERT
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STOCK NAME
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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MUDAJYA(5085)
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1/3/2013
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RM2.45
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ACCUMULATE
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RM2.90
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The share price has retreated c12% over the
past 1.5 months, as market anticipated setback in earnings, due to the slower
than expected progress of the India IPP EP project. Operating margins,
although still healthy, compressed to 16% in Q4 as local projects have lower
margins. We see this pullback in share price a good opportunity to
accumulate. The stock could be catalyzed by job awards, completion of the
India IPP project (understand overall progress is 70% completed, targeted to
be test fired by end CY13 & 1HYCY14) and likely signing of the fuel
supply agreement ( FSA) for the Indian IPP by 1H13. Mudajaya has strong
prospects to clinch civil works for the gas fired Prai power plant &
vying for highway jobs and is among the bidders of the RM1.6-2b Kidex
Highway. OB stands at cRM2.4b. Trading at less than 6x FY12/13 –
Accumulate.
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GAMUDA(5398WD)
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1/3/2013
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RM1.10
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BUY
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RM1.30
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Gamuda-WB RM1.10:
Gamuda is now trading at close to its trough at c 13.5x FY13 from its
average of 19x and P/Bk of 1.8x ( below average of 2x). This is despite its
good earnings visibility & solid prospects. Earnings visibility is sound
with RM4.5b outstanding OB, 6% Project Delivery Partner (PDP) fee for the MRT
project and RM1.2b of unbilled property sales. Prospects are good with RM10b
of potential new jobs in 2013-2014. Besides these, there could be a short
term catalyst as the local media recently reported that the government is
looking to buy over the LDP and SPRINT expressway for more than RM4b. There
could be a significant special dividend to shareholders if the disposal materializes.
We are also positive on KDEB’s proposed purchase of 100% equity interest in
SPLASH ( Gamuda has a 40% stake) for RM1.83b. BS is healthy with about RM1.6b
cash & net gearing at 13%. The share price is largely capped by election
risks currently. The Gamuda-WD offers excellent exposure to the company’s
price potential post election, as it is currently trading at no premium (
disc of 1.8%), gearing of 3.5x and has more than 2.2 years to expiry –
Buy.
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Calls for FEB WEEK 3/4
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STOCK
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Initiation Dates
|
Initiation price
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BUY/SELL
|
TARGET
PRICE
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LAST PRICE
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% Change since Initiated
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DAYA(0091)
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22/2/2013
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RM0.205
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Trading BUY
|
0.26
|
RM0.200
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-1.2%
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DRBHICOM(1619)
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22/2/2013
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RM2.49
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BUY on Weakness
|
RM2.80
|
RM2.57
|
+3.2%
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AMFIRST(5120)
|
25/2/2013
|
RM1.06
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Defensive BUY
|
RM1.10
|
RM1.06
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0.0%
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AZRB(7078)
|
25/2/2013
|
RM0.69
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TRIM
|
-
|
RM0.72
|
+4.2%
|
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AMBANK(1015)
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26/2/2013
|
RM6.29
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ACCUMULATE
|
RM6.50
|
RM6.32
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+0.5%
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TM(4863)
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26/2/2013
|
RM5.32
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ACCUMULATE
|
RM6.00
|
RM5.32
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+0.0%
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UZMA(7250)
|
27/2/2013
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RM1.65
|
Trading BUY
|
RM2.00
|
RM1.61
|
-2.6%
|
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BSTEAD(2771)
|
27/2/2013
|
RM4.75
|
ACCUMULATE
|
RM5.20
|
RM4.80
|
+1.1%
|
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SCOMI(7158)
|
28/2/2013
|
RM0.315
|
BUY
|
RM0.37
|
RM0.31
|
-1.5%
|
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PUNCAK(6807)
|
28/2/2013
|
RM1.35
|
Switch
|
RM1.60
|
RM1.34
|
-0.8%
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Friday, March 1, 2013
Morning Call | 1 March 2013
