|
FLOWS
|
Thursday, 21 November, 2013
|
|||||||||||||
|
BUY
|
IOICORP,
FGV, AXIATA
|
|||||||||||||
|
SELL
|
DIALOG, GENM, TENAGA
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
HOVID (7213)
|
21/11/2013
|
RM0.345
|
ACCUMULATE
on weakness
|
RM0.41
|
||||||||||
|
We
continue to like Hovid for its defensive earnings as this pharmaceutical
company covers more than 350 different types of generic drugs, OTC and
dietary supplyments which are exported to more than 45 countries worldwide.
Moving forward Hovid’s earning growth will be fuelled by new product launches
(10-15new products annually). The Next 5 years would be an interesting period
for the group as they will benefit from the “patent cliff” where the patent
expiration of drugs worth US133bn expires allowing drugmakers to launch
generic version of this drug to expand sales. Another rerating catalyst for
Hovid is its on-going prospect to achieve US FDA approval for its patented
product, the Palm Tocotrienols, that’s expected to be completed in 2-3 years.
Currently stock is only trading at 12.7x FY13 PE and 10.7x for FY14. P/b
Value is only 1.6x which is relatively lower than regional average of 4x.
Earnings growth will come from the plan expansion of their Ipoh plant in
2014. Technical chart has fulfilled its h&s breakdown tp (3.5sens from
RM0.36) yesterday and found support at lower levels. RSI is approximately
53%. Accumulate on weakness with a TP of RM0.41 based on 12x PE for FY14 and
0.032 EPS.
(RL)
 |
||||||||||||||
|
TSH (9059)
|
21/11/2013
|
RM2.83
|
Take Profit
|
RM2.50
|
||||||||||
|
In light of
the CPO stocks rally recently, the stock has done well gaining 18% to a high
of RM3.00 (surpassing our target price of RM2.98) in the past 5 trading days
after Dorab Mistry pegged RM2,800 pmt target for the first half of next year
ahead of the implementation of B7 in Biofuel. While, the policy has yet to
see any development, CPO prices would likely consolidate till the end of
year. Recent news flow also reveals that our country has increased export tax
for the first time in 9 months for December to 5% from 4.5% and would curb
rising export numbers. Given that TSH is a close beta to plantation prices,
we feel it’s appropriate to take profit. Fundamentals are still intact as
group has a young plantation profile (77% of trees are below 7 years mainly
in Sabah and
(RL)
 |
||||||||||||||
|
Calls for NOV Week 2
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
NAIM (5073)
|
14/11/2013
|
RM3.56
|
ACCUMULATE
|
RM5.12
|
RM3.69
|
+3.6%
|
||||||||
|
ALAM (5115)
|
14/11/2013
|
RM1.40
|
Technical BUY
|
RM1.68
|
RM1.57
|
+12.1%
|
||||||||
|
WASEONG (5142)
|
15/11/2013
|
RM1.70
|
ACCUMULATE
|
RM2.00
|
RM1.68
|
+1.2%
|
||||||||
|
PERDANA (7108)
|
15/11/2013
|
RM1.94
|
BUY
|
RM2.30
|
RM1.99
|
+2.5%
|
||||||||
|
TM(4863)
|
18/11/2013
|
RM5.16
|
Trading BUY
|
RM5.90
|
RM5.18
|
-0.3%
|
||||||||
|
SWKPLNT(5135)
|
18/11/2013
|
RM2.50
|
BUY
|
RM2.90
|
RM2.56
|
+2.4%
|
||||||||
|
MAYBULK (5077)
|
19/11/2013
|
RM1.71
|
BUY
|
RM2.00
|
RM1.74
|
+1.7%
|
||||||||
|
FGV (5222)
|
19/11/2013
|
RM4.30
|
BUY
|
RM4.93
|
RM4.52
|
+5.1%
|
||||||||
|
MATRIX (5236)
|
20/11/2013
|
RM3.24
|
Trading SELL
|
RM2.90
|
RM3.20
|
+1.3%
|
||||||||
|
GADANG (9261)
|
20/11/2013
|
RM0.99
|
BUY
|
RM1.41
|
RM0.975
|
+1.6%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|
