Tuesday, June 11, 2013

Morning Call | 10 June 2013


FLOWS
Monday, 10 June, 2013
BUY
CIMB, SPSETIA, TM
SELL
DIALOG, IOICORP, TENAGA
STOCK ALERT
STOCK NAME
DATE
PRICE
BUY/SELL
TARGET PRICE
PMETAL(8869)
10/6/2013
RM2.57
ACCUMULATE
RM3.00
The interest in the stock has picked up strongly the last 2 weeks, price rising c25%. This probably on the back of fact that Press is in the final stages of commissioning Press Metal Bintulu’s smelter in Samalaju. The state of the art 400kA smelting technology, which consumes 10% less power, enjoys a 10-year tax pioneer status and just 77km away from the Bintulu Port, is set to multiply production volume and expected to boost FY13 revenue & earnings. Group expects volume to double in 2013 & optimize utilization in 2014. This along with a small recovery in aluminium prices could propel earnings substantially in FY13 & 14. With its capex already front loaded, net gearing is forecast to improve to 1.4x by FY14, from 2.1x in FY12. Despite the price run-up, group is still trading at attractive PE of c5-6x FY14 against a robust EPS CAGR in excess of 20% - Accumulate ( TP RM3.00  PE 6.5x FY14)
 (AK)
 
MUHIBAH(5703)
10/6/2013
RM1.43
BUY
RM2.09
The share price has consolidated around the RM1.40 level for the past month. The Q1 results, which came in within market, indicated higher margins across all its divisions except for the shipyard unit. Higher contribution was also seen from the concession division, especially the Cambodian airport operations. Current OB stands at RM2.1b (Construction RM1.2b, Crane RM650m, Shipyard RM195m) & will last group for the next 2-3 years. Moving forward after the APH concern overhang, we see Muhibah as one of the contractors that will benefit substantially from the robust construction and O&G outlook, given its track record as a marine, O&G and civil contractor. Trading at just 6x & 7x for FY13 & 14 – BUY  ( TP RM2.09  PE 9x FY14)
(AK)
 
Calls for MAY Week 4/ JUNE Week 1
STOCK
Initiation Dates
Initiation price
BUY/SELL
TARGET PRICE
LAST PRICE
% Change since Initiated
TIENWAH(7374)
31/5/2013
RM2.55
ACCUMULATE
RM3.00
RM2.55
0.0%
FAJAR(7047)
31/5/2013
RM0.72
BUY on weakness
RM0.83
RM0.66
-9.3%
KSL(5038)
3/6/2013
RM2.27
ACCUMULATE
RM2.60-2.80
RM2.12
-6.6%
KINSTEL(5060)
3/6/2013
RM0.35
Trading BUY
RM0.45
RM0.355
+1.4%
SCABLE(5170)
4/6/2013
RM1.82
ACCUMULATE
RM2.20
RM1.98
+8.7%
HSL(6238)
4/6/2013
RM1.98
BUY on weakness
RM2.20
RM1.98(EX 0.08)
+4.0%
TA(4898)
6/6/2013
RM0.585
BUY
RM0.85
RM0.58
-0.9%
COASTAL(5071)
6/6/2013
RM2.28
BUY
RM2.60
RM2.20
+4.0%
CMSB(2852)
7/6/2013
RM5.11
BUY
RM6.10
RM5.50
+7.6%
PENERGY(5133)
7/6/2013
RM1.92
ACCUMULATE
RM2.23
RM2.03
+5.7%

 

 

 
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