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FLOWS
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Friday, 23 May, 2014
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BUY
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DIGI, CIMB,
AIRASIA
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SELL
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GENM, MISC, SKPETRO
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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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BRAHIMS (9474)
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23/5/2014
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RM1.95
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Trading Buy
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RM2.25
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The
share price has fallen c25% over the past 2 months, largely on the back of
uncertainties with regards MAS, from which the company derives a majority of
it’s earnings. Following recent reports & developments, we reckon the
selling may have been overdone. Besides MAS, group also supplies in-flight
meals to about 30 other airlines. Catering revenue by foreign airlines is
growing at a faster rate due to higher price per meal charged ( due to better
meal quality demanded ). It was also reported that if MAS were to cease
operations, the government or the airline would need to compensate Brahim.
The group’s collaboration with the Saudi Arabia government to supply food to
pilgrims in Mecca will start making contribution in FY2016. A government
spokesperson has also clarified that
the PM’s statement in the WSJ did not
mention bankruptcy specifically as an option for MAS, but just that it needs
to be taken into consideration in it’s status as a public company. We deem it
unlikely that the group’s 25 year concession agreement with MAS would be
terminated; Valuation at undemanding 12x FY12/15, RSI @ 30 ; Trading Buy (AK)
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ENGTEX (5056)
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23/5/2014
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RM1.85
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Accumulate
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RM2.60
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Share price has eased by c15% over
the past 6 weeks. The Selangor state’s water restructuring exercise is one
step closer to finalisation following reports last week that Puncak Niaga Sdn
Bhd (PNSB) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) have agreed to
accept the Selangor government’s takeover offer. We expect a steep upturn in
demand for water pipes once the dispute is resolved. The recent water
shortage experienced in the state of Selangor only emphasises the need for
authorities to act sooner. Apart from the huge demand for pipes stemming from
the need to replace old pipes, other projects that could create a surge in
demand include the Langat 2 water treatment project, Pengerang project &
Kuantan Port City project. Management has indicated that demand going forward
could amount to RM1b. Valuation is undemanding at 7.1x FY14, RSI at 38; Accumulate ( TP RM2.60, 10x FY14 EPS). (AK)
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Calls for MAY WEEK 2/ WEEK 3 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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SPSETIA (8664)
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16/5/2014
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RM2.97
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ACCUMULATE
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RM3.50
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RM2.93
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-1.3%
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PRESBHD (5204)
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16/5/2014
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RM1.91
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ACCUMULATE
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RM 2.20
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RM1.96
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+2.6%
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YINSON (7293)
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19/5/2014
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RM4.90
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BUY
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RM5.50
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RM5.10
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+4.0%
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IOICORP (1961)
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19/5/2014
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RM5.30
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TAKE PROFIT
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RM4.90
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RM5.19
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-2.1%
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COASTAL (5071)
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20/5/2014
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RM4.74
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ACCUMULATE
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RM5.94
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RM4.90
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+3.4%
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PERDANA (7108)
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20/5/2014
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RM1.73
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ACCUMULATE
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RM2.25
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RM1.82
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+5.2%
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SKPETRO (5218)
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21/5/2014
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RM4.24
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ACCUMULATE
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RM5.57
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RM4.19
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-1.2%
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AXIATA (6888)
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21/5/2014
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RM6.95
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Take Profit
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-
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RM6.93
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-0.3%
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KPS (5843)
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22/5/2014
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RM1.52
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Trading Buy
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RM2.50
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RM1.51
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-0.6%
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DRBHCOM (1619)
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22/5/2014
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RM2.42
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Accumulate
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RM3.00
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RM2.42
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+0.0%
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Good Call
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Not Good Call
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