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FLOWS
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Monday, 23 June, 2014
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BUY
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SKPETRO,
ASTRO, AXIATA
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SELL
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MAXIS, MAYBANK, UEMS
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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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CBIP (7076)
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23/6/2014
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RM4.40
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BUY
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RM5.10
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Share price of CBIP fell from its high of RM4.80 to recent low of RM4.22
following the weaker plantation sector overall which has been suppressing
benchmark valuations among the plantation names. We feel however, CBIP is a
proxy to the plantation sector that is able to withstand the CPO price
volatilities as plantation companies will still continue with capex on new
mills even in times of low CPO prices. Group has secured 440mil worth of
orderbook for FY13 and expecting to clinch another 350mil worth this
year(where half of the orders were for its retro-fitting division); paired
with an improving margin from its patented technology and a net cash of
132mil warchest gives it plenty of options for capex in the future. Upcoming
catalyst includes, more contracts coming from Africa, Central/South
America and Papua New Guinea which has a mature areas of oil palm which
resulted in higher demand for palm mills. Currently trading at a only 11.8x PE for FY14 and 10.8x
for FY15 which is relatively lower sector average of 15x. BUY with a TP of
RM5.10 based on 13x PE.
(RL)
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HOHUP (5169)
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23/6/2014
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RM1.41
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BUY
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RM2.30
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Share price retraced 12% since it announced
its PN17 status and we believe this is an opportunity to accumulate on
current weakness. Catalyst for the group is the JV with Malton whereby Hohup
will receive 18% of the total project GDV of (RM4.1bil) for the building of
Pavilion 2 Mall (Spanning over 20 of the 50 acres) on its 60 acre free hold
land in Bukit Jalil in which the group has taken the decision to not
participate in the construction to keep the cash flow more transparent. The
60 acre land that the 2.1mil sq ft mall will be built on has a conservative
market value of RM550mil or RM1.40 per share. Group’s growth remain
compelling as they currently have 2bil worth of tenderbook which includes a
RM300mil water treatment place in Pengerang for the RAPID project and
possible parcel to develop EPF’s RRI land (943 acres) in Sg Buloh. Currently
trading at Single Mid PE of 5x for FY14 and will see a boost in 2015 numbers
when the JV development with Malton starts contributing. Share price
technical chart recently broke its downtrend ahead of its AGM on the 27th
of June where they would release more detail regarding its Bukit Jalil
Project. Buy with a TP of RM2.30 based on peer average of 9x for FY14.
(RL)
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Calls for JUNE 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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UEMS (5148)
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16/6/2014
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RM2.07
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ACCUMULATE
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RM2.51
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RM2.11
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+1.9%
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MRCB (1651)
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16/6/2014
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RM1.62
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ACCUMULATE
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RM1.98
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RM1.63
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+0.6%
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WASEONG (5142)
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17/6/2014
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RM1.84
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BUY
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RM2.20
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RM1.81
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-2.7%
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MAXIS (6012)
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17/6/2014
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RM6.75
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TRIM
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-
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RM6.79
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0.0%
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BAT (4162)
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18/6/2014
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RM69.24
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SELL
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RM62.00
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RM67.00
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-3.5%
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DAYANG (5141)
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18/6/2014
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RM3.51
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ACCUMULATE
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RM4.35
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RM3.55
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+1.1%
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TUNEINS (5230)
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19/6/2014
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RM2.34
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ACCUMULATE
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RM2.60
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RM2.32
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-0.9%
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JTIASA (4383)
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19/6/2014
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RM2.49
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ACCUMULATE
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RM2.94
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RM2.50
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+0.2%
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PERDANA (7108)
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20/6/2014
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RM1.80
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ACCUMULATE
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RM2.10
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RM1.80
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0.0%
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ALAM (5115)
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20/6/2014
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RM1.56
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ACCUMULATE
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RM2.10
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RM1.57
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+0.6%
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Performance
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Positive
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Negative
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Neutral
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