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FLOWS
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Wednesday, 11 September, 2013
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BUY
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IJM, MAS, MAGNUM
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SELL
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ARMADA, GENTING, CIMB
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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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KIMLUN (5171)
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11/9/2013
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RM1.92
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BUY
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RM2.34
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The share price of Kimlun has retreated c16% over the past 6 weeks.
Valuation is now looking alluring, trading at 7.5x FY14 PE, backed
by a sizeable order-book of cRM1.55bn (Construction: RM1.2bn, manufacturing
RM340m). The recent Q2 results, although trailing, is considered in line as
Co is expecting a stronger 2H ahead. Co just announced awards for 2 new
projects in Johor worth a total of RM330m this week, which boosted its YTD
new construction contracts win to cRM1b ( exceeding FY13 market’s expectation
of cRM700m & last year’s new job win of RM800m). We believe the
construction sector is still strongly backed by ongoing mega infrastructure,
property and O&G projects. Being a specialist in supplying tunnel lining
segments and segmental box girders, KIMLUN remains a must own stock, for more
manufacturing job from KVMRT2 & 3 as well as in Singapore ( precast
packages for Thomson MRT line expected to be awarded by year end). Kimlun is
also a proxy to the booming Iskandar development having established a strong
track record in Johor for construction works. MACD just cut upwards, RSI at
49. - Buy (TP RM 2.34, 9x FY14).
(AK)
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HUAYANG (5062)
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11/9/2013
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RM2.73
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ACCUMULATE
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RM3.55
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The 10% pullback in share price from the RM3.10 level over the past
month has brought Huayang’s PER down to an attractive 5.7-6.5x for FY03/ 14
& 15. Strong support evident at RM2.70 level in the recent market
retracement. Co remains amongst the preferred property developers as it is
one of the few to focus on the affordable housing market which will enjoy
resilient demand for years to come. We believe this pool of mass buyers will
grow as affordability becomes an overbearing issue for higher priced
developments. It will also be less impacted by BNM shortening the maximum
tenure allowed on mortgages from 45 to 35 years. Although Q1 ending 06/13
looked weak, management has re-emphasized that plans to achieve sales targets
of cRM500-600m for FY14 remain intact, on the back of higher unbilled sales
of RM530m & more than RM1b worth of launches lined up over the remaining
quarters of FY14. Catalyst will come in the form of it’s higher FY14 sales
& it’s ability to capitalize on its landbanks more imminently as property
prices continue to trend upwards ( higher selling prices) – Trading at FY14
PE 6.5x & dividend yield of 4.4%, Accumulate ( TP RM3.55, FY14 PE 8.5x ).
(AK)
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Calls for SEPT Week 1/ Week 2
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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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PBBANK (1295)
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4/9/2013
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RM17.22
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Take Profit
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-
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RM17.78
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+3.2%
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AIRASIA (5099)
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4/9/2013
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RM2.56
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ACCUMULATE
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RM3.00
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RM2.58
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+0.7%
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CMSB (2852)
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5/9/2013
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RM4.53
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ACCUMULATE
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RM5.30
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RM4.55
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+0.4%
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PERISAI (0047)
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5/9/2013
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RM1.25
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ACCUMULATE
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RM1.65
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RM1.37
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+9.6%
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GTRONIC (7022)
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6/9/2013
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RM2.61
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BUY
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RM3.10
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RM2.75
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+5.7%
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MMCCORP (2194)
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6/9/2013
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RM2.50
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TRIM
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RM2.30
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RM2.66
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+6.4%
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HLI (3301)
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9/9/2013
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RM5.14
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ACCUMULATE
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RM6.00
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RM5.40
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+3.1%
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CIMB (1023)
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9/9/2013
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RM7.19
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ACCUMULATE
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RM8.50
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RM7.58
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+5.4%
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HARTA (5168)
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10/9/2013
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RM7.04
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SELL
into strength
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RM6.20
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RM7.04
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0.0%
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TROP (5401)
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10/9/2013
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RM1.56
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Trading BUY
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RM1.89
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RM1.55
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-0.6%
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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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