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FLOWS
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Wednesday, 4 September, 2013
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BUY
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MISC, MAXIS, MAYBANK, IHH
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SELL
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TENAGA, GAMUDA, WCT
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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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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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Both the daily & weekly charts are
exhibiting persistent negative divergences between its price & its
technical indicators which indicates decelerating momentum and an imminent
correction. PBBank has clearly outperformed the KLCI by >4x based on its
ytd performance of +9.2% vs the KLCI +2.1% while the historical beta of the
stock vs the KLCI is only at 0.67, hence a reversal to the mean is highly
likely as PBBank’s performance is now extremely skewed. PBBank’s 1H2013 loan
growth was mainly driven by retail loans (86%), of which housing loans grew
at 16.6% vs total loan growth of 5.9%. These sectors are subject to high
policy risk with expectations of further curbs to the property sector and the
reduction of subsidies & implementation of GST which will affect consumer
sentiment & retail spending. While, we acknowledge that PBBank is top in
its class, the fundamental disparity has been further exaggerated by the
sharp correction of its peers resulting in its premium becoming too excessive
– PBBank’s prospective PER & p/bk of 14.5x & 3.2x respectively compared
to industry average prospective PER of 12.3x & p/bk of 1.8x. Take profit
(PT)
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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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Stock is down 23% for the last 2 months due
to the sell-off in the Asean markets & disappointing 2Q13 results. Airasia
is expected to perform better in 2H13 because of the dissipating
uncertainties from the general elections & the Lahat Datu incursion, and
also seasonally more public holidays travelling. This will increase the load
factor & improve its yield as less discounting is required to fill the
planes, hence improving its bottom line. AirAsia currently trades at an
attractive forward PER of 9.3x which compares favourably against its 5-yr
average PER of 10.6x. The stock is oversold with RSI of 25%. It has achieved
its downside objective of RM2.46 after having broken down from its head &
shoulder formation at RM3.00. Accumulate
(PT)
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Calls for AUGUST Week 4 / SEPT Week 1
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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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SCABLE (5170)
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28/8/2013
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RM1.76
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ACCUMULATE
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RM2.24
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RM1.82
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+3.4%
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SENDAI (5205)
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28/8/2013
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RM1.44
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ACCUMULATE
on weakness
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RM1.91
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RM1.46
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+1.3%
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UMW (4588)
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29/8/2013
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RM12.12
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Trading BUY
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-
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RM12.58
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+3.7%
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SUNWAY (5211)
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29/8/2013
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RM2.74
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Trading BUY
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-
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RM2.92
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+6.5%
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BENALEC (5190)
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30/8/2013
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RM1.18
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Trading BUY
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RM1.40
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RM1.20
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+1.6%
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GADANG (9261)
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30/8/2013
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RM0.825
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Trading BUY
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RM1.30
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RM0.82
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-0.7%
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YTL (4677)
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2/9/2013
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RM1.55
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Accumulate
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RM1.83
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RM1.52
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-2.0%
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MHB (5186)
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2/9/2013
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RM3.58
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Accumulate
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-
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RM3.60
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+0.5%
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DAYANG (5141)
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3/9/2013
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RM4.42
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BUY
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RM5.40
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RM4.49
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+1.5%
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IJMLAND (5215)
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3/9/2013
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RM2.41
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BUY
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RM2.85
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RM2.43
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+0.8%
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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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