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FLOWS
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Monday, 24 February, 2014
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BUY
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SIME,
IOICORP, TENAGA
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SELL
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DIGI, AXIATA,
SPSETIA
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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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KIMLUN (5171)
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24/2/2014
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RM1.59
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ACCUMULATE
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RM1.96
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The
share price has eased c8% over the past week, after trading ex-rights on Feb
14. We see this price weakness an opportunity to accumulate the stock. The
rights issue which is expected to raise RM66m is timely, and would mainly be
used for working capital for jobs in hand & prospective ones. Recall that
group won a record RM1.1b for 2013. We expect earnings to recover strongly in
FY14 as Kimlun will begin recognizing contributions from the new jobs it won
last year (recall that 70% of new jobs were only secured in the 2H of 2013).
Other prospective jobs in the near term includes the Thomson LRT Line
(Singapore) with a tunnel lining segment package potentially worth SGD100m
(Co’s Johor & Senawang plant has sufficient capacity to meet orders if
required). Kimlun remains an attractive proxy to construction activities
within Johor as well as MRT jobs in Klang Valley and Singapore. Trading at 8x
FY14, RSI at 36 – Accumulate (TP RM1.96 based on 10x FY14 EPS).
(AK)
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TSH (9059)
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24/2/2014
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RM3.00
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ACCUMULATE
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RM3.60
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The outlook for plantation stocks has improved
significantly recently. CPO price which breached the psychological level of
RM2700, Indonesia’s Pertamina’s 2nd tender of biodiesel and
expectation of lower CPO inventory level all bodes well for CPO prices, as it
creates additional sustainable demand for CPO. In line with this optimism, we
believe TSH is very well positioned to ride this wave. We expect Co to be
amongst the main beneficiaries as it has one of the strongest FFB growth
amongst the planters – 20% CAGR for the next 3 years ( given it’s structural
advantage of having young trees, average 7 years old ), which will auger well
for its medium term outlook as well. Besides this, it is expected to record a
one-off RM86m gain from the sale of a 16% stake in Pontian last year, and
expected to declare higher FY13 dividends +30-40% yoy; Accumulate, for it”s
strong FFB growth & improving sector outlook.( TP RM3.60, based on 18x
FY14 EPE of 20s).
(AK)
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Calls for FEB Week 2/Week 32014
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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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MMCCORP (2194)
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17/2/2014
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RM2.79
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Trading BUY
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RM3.20
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RM2.79
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+0.4%
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MRCB (1651)
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17/2/2014
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RM1.48
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ACCUMULATE
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RM1.80
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RM1.51
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+2.0%
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TROP (5401)
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18/2/2014
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RM1.24
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ACCUMULATE
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RM1.62
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RM1.30
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+4.8%
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SOP (5126)
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18/2/2014
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RM5.99
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ACCUMULATE
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RM6.96
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RM6.08
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+1.5%
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MPHBCAP (5237)
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19/2/2014
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RM1.78
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ACCUMULATE
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RM2.00
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RM1.87
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+5.0%
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WASEONG (5142)
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19/2/2014
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RM1.99
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ACCUMULATE
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RM2.50
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RM1.95
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-2.1%
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UMWOG (5243)
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20/2/2014
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RM4.39
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BUY
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RM4.80
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RM4.36
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+0.7%
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MUHIBAH (5703)
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20/2/2014
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RM2.64
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SELL
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RM2.30
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RM2.65
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+0.3%
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SEALINK (5145)
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21/2/2014
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RM0.445
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BUY
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RM0.55
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RM2.79
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+0.4%
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PENERGY (5133)
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21/2/2014
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RM2.34
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ACCUMULATE
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RM2.70
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RM1.51
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+2.0%
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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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