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FLOWS
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Thursday, 10 April, 2014
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BUY
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AXIATA,
IOICORP, TM
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SELL
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SKPETRO, CIMB, DIGI
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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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PMETAL (8869)
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10/4/2014
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RM2.50
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BUY
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RM3.10
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US global aluminum player, Alcoa Inc, revised its January
forecast of a global supply surplus of 106,000 metric tons
(mt) to a supply deficit of 730,000 mt for 2014. This is after 9 years
of excess global production which has depressed aluminum
prices. Over the past 2 months, LME aluminum futures
have bottomed and rose 12.5% to USD1,819/mt, forming a double
bottom on the charts with an upside target of another 6.5% to USD1933/mt. In
addition, the surcharge (premium) that customers must pay on top of the LME
prices to take delivery of the aluminum from LME registered warehouses have
been increasing from USD200/mt to as high as USD500/mt. These developments
together with the earlier known factors like the full production at
Mukah & Semalaju plants ( vs Mukah plant hit by power outages last year
that damaged equipment & loss of income coupled with Samalaju plant which
was only fully commissioned in Oct'13), the sale of 20% stake in the Samalaju
smelter to Sumitomo that comes with an off-take agreement and the
ensuing reduction in interest expense as gearing is reduced to 1.0x are solid
catalysts for a strong earnings recovery in FY14. PMetal trades at buy
valuations of PER 7.4x & 5.5x for FY14 & FY15. Buy
(PT)
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WCT (9679)
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10/4/2014
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RM2.25
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TRADING BUY
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RM2.50
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Stock took out its 4-months resistance at RM2.21with a
break-out targets of RM2.41/43. The mid-term weekly macd indicator positive
crossover confirms this uptrend move. After the disappointing contract wins
of RM670m in 2013, management has guided that they are stepping up on their
bids with tenders of RM3b-5b worth of prospective jobs and targeting RM2b
contract wins. Some of the projects are Putrajaya Lot F (c RM1.5b),
subcontract works for the RM5b WCE, Tun Razak Exchange earthworks Zone 2
& 3 (RM200m-RM300m), Rapid civil works Phase 2, Kwasa Land civil works,
Sabah hospitals and MRT station works near KL Sentral. Existing order books
remain healthy at RM2.7b. Management is also targeting new property sales of
RM1.2b in FY14 with 2 launches carried forward from FY13 due to delays in the
advertising permits. Recurring income will be boosted significantly
with the Gateway@KLIA opening in May with good pre-tenancy rates of
80% now and expected to increase to 85% once the mall opens. Valuation of WCT
is relatively lower than its peers with PERs of 12.8x & 11.6x for FY14
& FY15 respectively. Trading BUY.
(PT)
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Calls for APRIL Week 1 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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BARAKAH (7251)
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3/4/2014
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RM1.56
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TRADING BUY
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RM2.20
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RM1.58
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+1.2%
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TAANN (5012)
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3/4/2014
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RM4.20
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ACCUMULATE
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RM4.80
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RM4.16
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-1.0%
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PANTECH (5125)
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4/4/2014
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RM0.895
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BUY
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RM1.26
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RM0.965
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+7.8%
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GADANG (9261)
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4/4/2014
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RM1.21
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ACCUMULATE
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RM1.80
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RM1.30
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+7.4%
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AIRASIA (5099)
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7/4/2014
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RM2.39
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BUY
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RM2.77
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RM2.28
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-4.7%
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TENAGA (5347)
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7/4/2014
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RM11.34
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ACCUMULATE
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RM12.30
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RM11.90
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+4.9%
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LBS (5789)
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8/4/2014
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RM1.81
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BUY
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RM2.20
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RM1.82
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+0.5%
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TGUAN (7034)
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8/4/2014
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RM2.13
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BUY
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RM2.70
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RM2.11
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-1.0%
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TM (4863)
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9/4/2014
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RM5.86
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TRADING BUY
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RM6.20
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RM5.86
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0.0%
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DIALOG (7277)
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9/4/2014
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RM3.68
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ACCUMULATE
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RM4.50
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RM3.67
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-0.3%
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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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