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FLOWS
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Thursday, 17 October, 2013
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BUY
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CIMB, DIGI, AIRASIA
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SELL
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GAMUDA, MUDAJYA, IGB
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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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MALTON (6181)
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17/10/2013
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RM0.97
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Trading BUY
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RM1.20
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Interest
in the stock has picked up over the past few days, with prices at a new high
after rising c15% over the past week. This is probably on the back of the
fact that there is more clarity on a few of its big projects. 3 big projects
are in the pipeline worth a total RM9.7b, all in prime locations namely Bukit
Jalil, Batu Kawan & Pengerang - Co will be developing a sizeable
mall at Bukit Jalil worth RM3.5b, together with commercial & residential
components to ride on the 5.3m population catchment area. It also has 300
acres with GDV RM3.8b at Batu Kawan right off the Penang Second Bridge which
is targeted for opening in 2014 & 200 acres at Pengerang, Johor which is
the next mega O&G hub in Malaysia. It is also likely that Co may have a
bigger role in Pusat Bandar Damansara ( PBD ) now that it’s 38% major shareholder
Datuk Desmond Lim effectively holds the PBD land after the settlement with
Johor Corp. Trading at P/BK of 0.65x, PER of 6.5x FY06/14 and a 74% discount
to RNAV, valuation appears undemanding. The undervaluation also makes Malton
an attractive takeover target given it’s attractive land-bank exposure;
Trading Buy (TP RM1.20, based of 66% disc to RNAV, 0.82x P/BK).
(AK)
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SENDAI (5205)
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17/10/2013
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RM1.42
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ACCUMULATE
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RM1.80
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Share price has consolidated around RM1.40-1.50
level for the past 6 weeks. The lower prices, we believe, has already
reflected the poor 1HFY13 results, which were dragged by delays in job due to
timing & variation orders. The profit recognition of some of these
projects are likely to be delayed to FY2014. Management has guided that it is
still on track to reach RM1b job replenishment in 2013. Co still has an OB of
cRM1.4b to be billed in 2H2013 & FY14-16. Management remains confident of
new contract wins based on it’s large tender-books, technical expertise, execution
track record & knowledge of key markets. New venture in O&G via 20.1%
owned Technics Oil & Gas is also bearing fruit & the group is also
venturing into specialised building construction through 49% owned Vahana
Constructions. We like Sendai as it is a globally competitive company, a good
proxy to the Middle East oil wealth (Indulgence of oil rich countries) &
an up and coming O&G play. B/S remains healthy with cash reserves of
RM365m, gross gearing ratio of 0.6x & trading at 8.5x FY14 (appears
undervalued compared to Construction peers) – Accumulate ( TP RM1.80, PE 11x
FY14).
(AK)
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Calls for OCT 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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MISC (3816)
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9/10/2013
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RM5.09
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TRIM
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RM4.80
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RM5.11
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+0.3%
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QL(7084)
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9/10/2013
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RM3.82
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SELL into Strength
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RM3.63
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RM3.83
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-0.2%
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CYPARK (5184)
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10/10/2013
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RM2.01
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ACCUMULATE
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RM2.40
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RM2.04
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+1.4%
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GASMSIA (5209)
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10/10/2013
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RM3.91
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Take Profit
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RM3.40
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RM3.95
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+1.0%
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DRBHCOM(1619)
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11/10/2013
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RM2.50
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BUY
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RM2.75
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RM2.51
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+0.4%
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HUBLINE (7013)
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11/10/2013
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RM0.055
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BUY
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RM0.095
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RM0.055
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0.0%
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DELEUM(5132)
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14/10/2013
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RM4.17
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Take Profit
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RM3.50
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RM4.18
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+0.2%
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SUNWAY (5211)
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14/10/2013
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RM2.90
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BUY
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RM3.40
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RM2.90
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0.0%
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YTL (4677)
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16/10/2013
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RM1.52
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ACCUMULATE
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RM1.80
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RM4.09
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+0.6%
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SCOMIES(7045)
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16/10/2013
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RM0.67
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ACCUMULATE
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RM0.80
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RM0.675
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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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