|
FLOWS
|
Monday, 13 January, 2014
|
|||||||||||||
|
BUY
|
TENAGA,
PERDANA, DIALOG
|
|||||||||||||
|
SELL
|
PCHEM,SKPETRO, UEMS
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
GAMUDA (5398)
|
13/1/2013
|
RM4.52
|
ACCUMULATE
|
RM4.90
|
||||||||||
|
Has
retraced more 5% since the end of December to an intraday low of RM4.42 last
Friday, close to its recent low of RM4.41. It rebounded strongly from there
despite the disappointment over another failed Selangor state offer for
SPLASH and the fear of an unpleasant takeover as both the federal and state
governments have agreed to invoke Section 114 of the Water Services Industry
Act 2006 (WASIA), as negotiations to take over the water concessionaires have
fallen through. This is a clear indication that the stock has bottomed as it
bounced off its low even on negative news. Anyway, the loss in market cap of
RM.34/share has more than discounted this negative development as even if the
full Splash purchase consideration is paid as dividend (as was earlier
expected by the market), it would amount to RM0.32/share. In addition, we are
of the opinion that the takeover of the concessionaires will proceed amicably
in view of the major shareholders cum managements relationship with the
federal government, the implications on the Malaysian bond market which has
significant exposure to these concessionaires, and Malaysia does not have any
history of forceful takeover that may affect the flow of FDI which the
country needs to rely upon in the current fiscal austerity environment.
Meanwhile, Gamuda remains the sole contractor with expertise & machinery
for MRT tunneling, giving them considerable advantage for the bidding of the
RM25b MRT Line 2 project where tunneling portion alone is estimated at RM10b.
Cabinet approval is expected to be in early 2014 which will be a key catalyst
for Gamuda. It is also trading at attractive valuations relative to
historical PER of 20.6x with PER of 14.7x for FY14 and earnings growth of 14%
for the next 2 years. Accumulate in view of the current blue chips correction
phase. TP: RM4.90 (PT)
 |
||||||||||||||
|
IOICORP (1961)
|
13/1/2013
|
RM4.24
|
ACCUMULATE
|
RM4.80
|
||||||||||
|
is
oversold with a RSI of 28.8% and has retraced closed to 12% since 31/12/13.
It went ex-dividend in specie of 1 IOI Property:2 IOICorp and ex-restricted
offer for sale of 1 IOI Property @ RM1.76: 6 IOICorp on 19/12/13. With the
demerger exercise completed, IOICorp is now a pure big cap plantation play.
It is one of the most efficient integrated plantation players with yields
better than the other big cap plantation players, like KLK, GENP & FGV,
yet it trades at lower valuation than them. IOICorp trades at a forward PER
of 16.9x versus the average forward PER of Malaysian big cap planters of
20.2x. In addition, management has guided to maintain the last 2 years
dividend per share pay-out of 15.5sen despite the demerger exercise. This is
because, cash is no longer required to fund the huge property related capex,
estimated to be RM1.3b & RM1.7b in FY12 & FY13 respectively. In
addition, to the increase in dividend yield, the added catalyst would be
further acquisition of plantation assets from the release of the said capital
commitment. Accumulate TP:RM4.80 (PT)
 |
||||||||||||||
|
Calls for JAN week 1/Week 2 2014
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
SENDAI (5205)
|
6/1/2013
|
RM1.03
|
BUY
|
RM1.29
|
RM1.04
|
+0.9%
|
||||||||
|
ALAM(5115)
|
6/1/2013
|
RM1.53
|
BUY
|
RM1.80
|
RM1.59
|
+3.9%
|
||||||||
|
MALTON (6181)
|
7/1/2013
|
RM0.845
|
Trading BUY
|
RM1.45
|
RM0.86
|
+1.8%
|
||||||||
|
NAIM (5073)
|
7/1/2013
|
RM3.80
|
ACCUMULATE
|
RM5.16
|
RM3.78
|
-0.5%
|
||||||||
|
HUAYANG (5062)
|
8/1/2013
|
RM2.06
|
BUY
|
RM2.62
|
RM2.00
|
-2.9%
|
||||||||
|
PARKSON (5657)
|
8/1/2013
|
RM2.86
|
ACCUMULATE
|
RM3.45
|
RM2.80
|
-2.1%
|
||||||||
|
SPSETIA (8664)
|
9/1/2013
|
RM2.89
|
Trading BUY
|
RM3.30
|
RM2.96
|
+2.4%
|
||||||||
|
KKB (9466)
|
9/1/2013
|
RM2.60
|
ACCUMULATE
|
RM2.90
|
RM2.61
|
+0.3%
|
||||||||
|
PHARMA (7081)
|
10/1/2013
|
RM4.46
|
BUY
|
RM5.40
|
RM4.47
|
+0.2%
|
||||||||
|
SCIENTX (4731)
|
10/1/2013
|
RM5.53
|
BUY
|
RM6.64
|
RM5.47
|
-1.0%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|
