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FLOWS
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Thursday, 22 August, 2013
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BUY
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CIMB,
GAMUDA, IJM
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SELL
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SKPETRO, IOICORP, MUHIBBAH
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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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CBIP (7076)
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22/8/2013
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RM2.79
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BUY
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RM3.60
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Share
price has weakened slightly following the recently released HY results which
trails consensus. We see this as a buying opportunity, as the group’s
progress billings are usually recognized in 2H of the financial year. CBIP is
a proxy to the plantation sector but yet is largely shielded from CPO price
volatilities, as plantation companies will still continue with capex on new
mills even in times of low CPO prices. There are several catalysts going
forward – OB remains solid (unbilled sales of the mill construction division
stood at RM390m as at end March 2013, Co has received cRM150-200m worth of
contracts ytd & hopeful of winning RM350-450m contracts in FY13),
expanded capacity to ensure demand is met and the new technology zero
discharge mill & recently proposed acquisition of Vickers Hoskins boiler
factory will help expand its market reach & add another source of
revenue. For the longer term, CBIP’s plantation operations in Indonesia will
start contributing more significantly from 2017. Valuation remains at an
undemanding 7-8x FY13-14, for a company with such attractive prospects. BUY
(TP RM3.60 based on 10x FY14).
(AK)
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WTK(4243)
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22/8/2013
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RM1.33
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ACCUMULATE
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1.74
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The
recent improved outlook on the timber sector, given the strong recovery
in log prices & Japan's improving economic activity which translates to
rising plywood imports, bodes well for WTK. It is arguably the purest
timber play as plantation division contribution won't be significant until
2016 onwards. Although plywood prices have not enjoyed a similar re-rating as
log (+20-30% yoy) as yet, we see it coming, given the general 4-6 months
lag to pass on higher log costs. Log prices of cUSD250-270 per cu m are
expected to hold through to 2014. The weaker USD/MYR exchange rate
also augers well for exporters like WTK. WTK's timber products are higher
end products and should carry higher margins. Trading at PE of 11.5x &
8.9x for FY13&14 - Accumulate, to ride on Japan's aggressive fiscal
& monetary policy under PM Abe, as it's expected to translate to improved
demand for tropical plywood. In the longer term, WTK's close relationship
with the Sarawak State Govt could lead to more land-bank expansion
opportunities. (TP RM1.74 based on 12x PE FY14).
(AK)
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Calls for AUGUST Week 2/Week 3
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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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PTARAS(9598)
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15/8/2013
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RM6.16
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Trading SELL
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RM5.50
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RM5.93
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-3.8%
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SUPERMX(7106)
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15/8/2013
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RM2.40
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Trading SELL
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RM2.18
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RM2.29
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-4.6%
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TRC (5054)
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16/8/2013
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RM0.64
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Trading BUY
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RM0.75
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RM0.60
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-6.3%
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TIMECOM(5031)
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16/8/2013
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RM4.00
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BUY
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-
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RM3.78
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-5.5%
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NAIM(5073)
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19/8/2013
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RM3.86
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Trading BUY
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-
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RM3.73
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-3.4%
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MHB (5186)
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19/8/2013
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RM4.07
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ACCUMULATE
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-
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RM3.75
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-7.9%
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E&O(3417)
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20/8/2013
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RM2.19
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Trading SELL
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RM2.00
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RM2.05
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-6.4%
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GAMUDA(5398)
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20/8/2013
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RM4.62
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BUY on weakness
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RM5.20
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RM4.46
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-3.4%
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GASMSIA(5209)
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21/8/2013
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RM3.37
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Take Profit
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-
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RM3.37
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0.0%
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DIALOG (7277)
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21/8/2013
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RM2.68
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ACCUMULATE
on weakness
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-
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RM2.68
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0.0%
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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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