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FLOWS
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Monday, 17 March, 2014
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BUY
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IOICORP,
GAMUDA, IJM
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SELL
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CIMB, AXIATA, KLCC
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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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HOVID (7213)
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17/3/2014
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RM0.35
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DEFENSIVE BUY
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RM0.41
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We
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 expiration of drugs worth US133bn
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 11.6x FY14
PE and 10.9x for FY15. P/b Value is only 1.6x which is relatively lower than
regional average of 4x. Share price will remain resilient against the global
uncertainties as it trades within a tight band between RM0.325 and RM0.38.
Buy TP of RM0.41 based on 12x PE for FY14 and 0.032 EPS.
(RL)
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SKPETRO (5218)
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17/3/2014
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RM4.19
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BUY on Weakness
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RM4.90
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Share price declined 15% from the beginning
of the year although the group has been actively expanding. Stock is
fundamentally driven with the newly acquired asset, Newfield (Feb
2014) looking to contribute to medium-term earnings growth while the group’s
drilling and fabrication operations will drive organic growth. Besides the
RM1.5bn Baronia central processing platform contract that SKPETRO was
shortlisted for recently, the group is also eyeing another 3 more CPP
contracts by Petronas at Semarang, Kinabalu, Dulang and Bokor fields worth
RM0.8 – 1.5bn each. Currently, group has an outstanding orderbook of RM23bn
and pegged with a 3 year EPS CAGR of 35%; group also has a trump card in hand
which is the widely anticipated RAPID by PETRONAS worth over RM60bil to
receive its FID. Valuations stood at 16.6x for FY15 and 14.6x for FY16 which
is relatively cheap than other big cap players in the region. Technical
indicators fell into an oversold position with RSI only at 25%; MACD still
trending in negative territory. Opportunity to Buy on weakness with an
immediate TP of RM4.90.
(RL)
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Calls for MARCH Week 1 / Week 2 2014
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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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GAMUDA (5398)
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7/3/2014
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RM4.62
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BUY
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RM5.20
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RM4.28
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-7.2%
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MEDIAC (5090)
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7/3/2014
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RM0.91
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ACCUMULATE
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RM1.05
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RM0.895
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-1.7%
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UCHITEC (7100)
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10/3/2014
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RM1.36
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ACCUMULATE
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RM1.58
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RM1.33
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-2.2%
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VITROX (0097)
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10/3/2014
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RM1.44
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BUY
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RM1.70
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RM1.50
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+4.1%
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PHARMA (7081)
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11/3/2014
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RM4.18
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BUY
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RM5.40
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RM4.36
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+4.3%
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BSTEAD (2771)
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11/3/2014
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RM5.39
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ACCUMULATE
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RM6.00
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RM5.40
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+0.2%
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CYPARK (5184)
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13/3/2014
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RM2.42
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BUY
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RM2.80
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RM2.40
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-0.9%
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SUPERMX (7106)
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13/3/2014
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RM2.80
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BUY
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RM3.10
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RM2.68
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-4.3%
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IJMLAND (5215)
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14/3/2014
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RM2.71
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Accumulate
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RM3.14
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RM2.71
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0.0%
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ENCORP (6076)
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14/3/2014
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RM1.29
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BUY
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RM1.60
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RM1.28
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-0.8%
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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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