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FLOWS
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Wednesday, November 27, 2013
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BUY
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MAYBANK,
ALAM, RHBCAP
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SELL
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BJTOTO, DIALOG, GENM
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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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BENALEC (5190)
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27/11/2013
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RM1.01
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Trading BUY
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RM1.23
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The
share price has fallen some 15% over the month of November, largely due to
the recent management shake-up ( which included a civil suit against 2 of its
directors) & delays & extension of the deadlines of its Tg Piai
future oil hub project. We see this pull back an excellent opportunity to buy
back into Benalec as there is still good value in the mid to longer term. We
consider the recent management shake-up to have minimal impact on the Co’s
operations as the MD & his team are very hands on in running the group
& have redeployed resources to fill up duties left vacant. On the matter
of delays in Tg Piai, there is still deep value on its oil hub aspirations.
Extensions in timeline can be somewhat anticipated, attributable to the sheer
size, complexity and magnitude of the project, with a potential sizeable
reclamation contract of RM2b. Besides these 2 concerns, the fundamentals of
the group are still in tact – strong B/S, share price support via its 30%
dividend payout & it’s active scouting for new investees in Tg Piai after
the 1MY Strategic Oil Terminal SB deal. Co is now trading at a steep discount
of more than 55% to its SOP, RSI at 22. While sentiment may be muted in the
short term, especially after the weak Q1FY14 results, stock could materially
re-rate if there are meaningful developments in its Johor projects ;
Trading Buy ( TP RM 1.23, 45% disc to SOP).
(AK)
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SURIA (6521)
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27/11/2013
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RM5.33
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ACCUMULATE
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RM3.44
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Despite the strong performance of the share price
over the past 3 weeks, the valuation of Suria still looks appealling. Earning
is underpinned by it’s stable & lucrative port concessions in Sabah ( 8
major ports – making up 88% revenue & 105% PBT in 1HFY13 ), while there’s
deep value in its prime landbank in Kota Kinabalu Port ( 23 acres prime &
strategically located Jesselton Quay development, poised to start in 2014).
There’s also limited earnings risks going forward as group earnings are at an
inflection point in FY14, backed by recovering logistic & bunkering
services division, potential port tariff adjustments and no more earnings
drag from the contract & engineering division. Suria is trading at an
attractive FY14 PER of 12x, which is at a substantial 30% discount to the
peers average PER of c18x and P/Bk of 0.8x. The recently released good Q3
results ( making up 85% of FY13 cons) reaffirms the improving fundamentals of
the group. Attractive valuations with a series of positive catalysts on the
horizon – Accumulate ( TP RM3.44, 16x FY14 EPS ).
(AK)
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Calls for NOV Week 4
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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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MATRIX (5236)
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20/11/2013
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RM3.24
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Trading SELL
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RM2.90
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RM3.22
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-0.7%
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GADANG (9261)
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20/11/2013
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RM0.99
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BUY
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RM1.41
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RM1.03
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+4.0%
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TSH (9059)
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21/11/2013
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RM2.83
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Take Profit
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RM2.50
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RM2.82
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-0.4%
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HOVID (7213)
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21/11/2013
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RM0.345
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ACCUMULATE
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RM0.41
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RM0.350
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+1.4%
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UEMS (5148)
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22/11/2013
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RM2.25
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BUY
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RM2.55
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RM2.30
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+2.2%
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DAYA (0091)
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22/11/2013
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RM0.365
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BUY
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RM0.41
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RM0.355
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-2.8%
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SIME (4197)
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25/11/2013
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RM9.56
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BUY
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RM10.50
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RM9.63
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+0.7%
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SALCON (8567)
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25/11/2013
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RM0.665
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BUY
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RM0.75
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RM0.69
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+3.0%
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BJLAND (4219)
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26/11/2013
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RM0.815
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BUY
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RM1.47
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RM0.815
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+0.0%
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BSTEAD (2771)
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26/11/2013
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RM5.33
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ACCUMULATE
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RM6.00
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RM5.34
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+0.1%
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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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