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FLOWS
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Tuesday, 26 August, 2014
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BUY
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IOIPG, SKPETRO, TENAGA
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SELL
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IHH, DIGI, MAYBANK
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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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UZMA (7250)
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26/8/2014
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RM3.43
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Trading BUY
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RM4.00
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The
share price is now trading near its support level of RM3.42, after having
fallen c19% from its recent high of RM4.22. We consider this a good buying
opportunity. Group has recently won the Tanjung Baram Small Field RSC via a
consortium and has proposed the acquisition of Thai based MMSVS Group Limited
that provides Hydraulic Workover Units (HWU) for USD29.7b ( to achieve
immediate earnings accretion & aggregate sales guarantee from vendor,
thus safeguarding UZMA’s interest if acquisition goes through ). It has also
raised RM99m through a rights issuance. And market talks has it that group is
hoping to close 2 more M&As within the year (likely to be within the
chemical, well services and brownfield rejuvenation segments. For a stock
that has successfully moved up the value chain in the O&G industry, it’s
valuation of 13.6x for FY15 appears attractive; Trading Buy (TP RM 4.00 based
of 16x FY15).
(AK)
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SCIENTX(4731)
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26/8/2014
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RM6.30
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TRIM
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BB- RM6.00
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The share surged c14% following the announcement of
the group’s agreement with Japan’s Futumura Chemical to build a biaxally
oriented polypropylene ( BOPP) film manufacturing plant in Malaysia ( could
increase its BOPP film production capacity by 10 folds). Market is generally
positive on the partnership, as it is viewed as a win-win deal for both
parties (leveraging on tech expertise & lowering of manufacturing cost).
However, the partnership has yet to be firmed up & financial details such
as capex, funding methods and timeline of plant construction yet to be
unveiled. The rise in raw material prices has affected margins for the
manufacturing segment, although on-going expansion plans for higher margin
consumer packaging films and product extensions could provide a buffer
against margin contractions. Stock is trading at c11% discount to SOP, which
we think is FV; Trim, possible buy back at RM6.00 (15% disc to SOP).
(AK)
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Calls for AUGUST WEEK 3/ WEEK
4 2014
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STOCK
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Initiation
Dates
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Initiation
price
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BUY/SELL
|
TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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SBCCORP (5207)
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19/8/2014
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RM2.17
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Trading BUY
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RM2.91
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RM2.12
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-2.4%
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MUHIBBAH (5703)
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19/8/2014
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RM3.14
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Trading BUY
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RM3.50
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RM3.04
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-3.2%
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SILKHLD (5078)
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20/8/2014
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RM1.11
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BUY
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RM1.25
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RM1.04
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-6.4%
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PANTECH (5125)
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20/8/2014
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RM1.06
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ACCUMULATE
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RM1.25
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RM1.04
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-1.9%
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TM(4863)
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21/8/2014
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RM6.24
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ACCUMULATE
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RM6.80
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RM6.26
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+0.3%
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MISC (3816)
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21/8/2014
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RM6.91
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TRIM
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-
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RM6.85
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-0.9%
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SURIA (6521)
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22/8/2014
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RM2.61
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ACCUMULATE
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RM3.25
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RM2.58
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-1.2%
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FABER (1368)
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22/8/2014
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RM3.30
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ACCUMULATE
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RM3.92
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RM3.54
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+7.2%
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ALAM (5115)
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25/8/2014
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RM1.45
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ACCUMULATE
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RM1.65
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RM1.46
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+0.6%
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AIRPORT (5014)
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25/8/2014
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RM7.91
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TRIM
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BB- RM7.50
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RM7.72
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-2.5%
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Performance
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Positive
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Negative
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Neutral
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