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FLOWS
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Monday, 29 July, 2013
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BUY
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GENM, IHH,MAYBANK
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SELL
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TENAGA, THHEAVY, UEMS
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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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MAHSING (8583)
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29/7/2013
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RM2.51
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ACCUMULATE
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RM3.10
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The share price has consolidated around the
RM2.40 level for the past month after it’s 1 for 5 bonus issue. The outlook
for the property sector still looks optimistic, given Malaysia’s relatively
young population & c65% home ownership ratio. Mah Sing’s strong earnings
growth, new sales & land-banking efforts could provide catalysts going
forward. Group achieved sales of RM750m in Q1, in line with the projected
RM3b for FY2013. Land-banking efforts are on-going (acquisition of 4 parcels
of land this year worth RM708m), with capacity to add another RM500-700m
comfortably this year. Group has exposure in all major property markets in
Malaysia- Klang Valley, Johor, Penang & Sabah. Stock liquidity has also
improved post it’s 1 for 3 rights & 1 for 5 bonus issue ( group has
perhaps the highest foreign shareholding amongst property players in
Malaysia). Net gearing is manageable, expected c0.4x by year end, after
payment for the land-banks. Trading at PER 11.3x for FY13 & 21% disc to
RNAV, stock appears attractive given the catalysts above - Accumulate ( TP
RM3.10, at RNAV)
(AK)
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QL(7084)
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29/7/2013
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RM3.60
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Trading SELL
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RM3.30
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Share price has moved up
c15% over the last month, on the back of expected strong Revenue & EPS
CAGR over the next 2 years. This is fueled by capacity expansion for its
marine product manufacturing (MPM) & integrated livestock farming (ILF)
divisions & margin expansion from softer raw material costs, increased
economies of scale & higher ASP. Growth is also expected from its
expansion into egg production in Indonesia & Vietnam. However, with the share
price ascend, QL’s now trading at PER of 18.2x FY03/14, versus the average
consumer sector PE of 23x CY14. The discount which is deem warranted given
it’s lower dividend yields & smaller market capitalization, has narrowed
. Although we remain positive on QL given it’s track record on earnings &
capacity expansion execution, we see it fully valued for now, RSI at 72 ;
Trading Sell ( Buyback at RM3.30, PER FY14 16.8x)
(AK)
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Calls for JULY week 3 / week
4
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STOCK
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Initiation Dates
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Initiation price
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BUY/SELL
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TARGET PRICE
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LAST PRICE
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% Change since Initiated
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THHEAVY(7206)
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22/7/2013
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RM0.945
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Trading SELL
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RM0.85
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RM0.905
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-4.3%
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SAM(9822)
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22/7/2013
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RM2.45
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BUY
on weakness
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RM3.00
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RM2.50
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+2.0%
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BRAHIMS (9474)
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23/7/2013
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RM1.00
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Trading BUY
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RM1.20
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RM1.21
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+21.0%
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WTK(4243)
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23/7/2013
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RM1.24
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BUY
on weakness
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RM1.55
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RM1.22
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-1.7%
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PUNCAK (6807)
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24/7/2013
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RM2.48
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BUY
on weakness
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RM3.50
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RM2.48
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+0.0%
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DRBHCOM (1619)
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24/7/2013
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RM2.70
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BUY
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RM3.30
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RM2.68
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-0.8%
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AMBANK (1015)
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25/7/2013
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RM8.02
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SELL
into strength
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RM7.40
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RM8.00
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-0.5%
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COASTAL (5071)
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25/7/2013
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RM2.53
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BUY
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RM3.36
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RM2.84
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+12.2%
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GENP(2291)
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26/7/2013
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RM10.00
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TAKE PROFIT
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-
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RM9.99
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0.0%
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UZMA(7250)
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26/7/2013
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RM4.00
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TAKE PROFIT
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-
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RM4.01
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+0.25%
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We’ve added an extra feature (first column from right) to indicate our
recommendation for our call.
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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