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FLOWS
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Thursday, 30 October, 2014
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BUY
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SKPETRO, IOICORP, SIME
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SELL
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FGV, DIGI, PETGAS
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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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VITROX (0097)
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30/10/2014
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RM2.42
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ACCUMULATE
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RM2.80
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Vitrox is a world-class
player in the semiconductor equipment industry, competing with the likes of
KLA Tencor, etc, which is just a tier below world leader, Applied Material.
The co has similar business model to the big tech multinational co in that co
does research & design in-house while production is contracted out to
subcontractors thus enjoying long-term margins of >25%. Co expertise in
auto vision inspection & cutting edge precision technology enables the co
to be nimble & diversify to other end products industry eg. healthcare
& defence, hence providing a buffer against any downturn in the
semiconductor industry. China's next 5-10 years plan to pump in up to
USD170bn to reduce reliance on others for semiconductor components &
capabilities will create potentially multi-year demand of Vitrox's products.
VItrox has a well-established presence in China & has been increasing its
sales channel partners & customers there. Sales & orders have been
very strong this year with half year sales approaching the whole of last
year. Trades at attractive PER of FY15 12.1x relative to its historical
average of 13.4x. Accumulate on
pull-back to RM2.36 & below
(PT)
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MAYBULK (5077)
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30/10/2014
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RM1.48
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ACCUMULATE
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RM1.75
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Stock has retraced 23% in a
month from the global markets sell down to a low of RM1.33. The BDIY Index
has bounced 93% from its low since it bottomed on 16/10/14 while Maybulk
bounced 11%. However its recent rebound has turned its technicals positive
with its technical indicators flashing buy signals. It is a low risk entry
level to position for expectations of a rebound in global growth. Generally
shipping analysts and industry captains are of the opinion that rates for
bulk shippers and tankers have bottomed in 2014, and analysts have forecasted an average
increase of 46% for bulk rates in 2015. Bunker costs have also been declining
since it peaked in June, in line with crude oil prices which have fallen >
20% since its peak which would improve its margins. In view of the favourable
operating parameters, Maybulk’s FY15
results will see drastic improvement compared to FY14. Maybulk trades at an
attractive p/bk of 0.74x, significantly cheaper than its historical p/bk of
1.5x. Accumulate
(PT)
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Calls for SEPT OCT 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
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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ARMADA (5210)
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23/10/2014
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RM1.47
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BUY
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RM1.80
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RM1.51
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+2.7%
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PCHEM (5183)
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23/10/2014
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RM5.93
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ACCUMULATE
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RM6.45
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RM6.14
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+3.5%
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HOVID (7213)
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24/10/2014
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RM0.375
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Defensive BUY
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RM0.43
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RM0.390
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+4.0%
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PADINI (7052)
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24/10/2014
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RM1.67
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BUY on weakness
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RM2.10
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RM1.78
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+6.5%
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MHB (5186)
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27/10/2014
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RM2.32
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ACCUMULATE
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RM2.68
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RM2.29
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-1.3%
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IJMLAND (5215)
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27/10/2014
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RM3.30
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ACCUMULATE
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RM3.60
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RM3.40
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+3.0%
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TGUAN(7034)
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28/10/2014
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RM2.00
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ACCUMULATE
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RM2.48
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RM2.03
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+1.5%
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MAXIS (6012)
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28/10/2014
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RM6.68
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Switch - DIGI
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-
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RM6.75
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+1.0%
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DELEUM (5132)
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29/10/2014
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RM1.88
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ACCUMULATE
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RM2.55
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RM1.95
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+3.7%
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ECONBHD (5253)
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29/10/2014
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RM0.94
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Trading BUY
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RM1.15
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RM0.95
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+1.0%
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Performance
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Positive
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Negative
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Neutral
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