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FLOWS
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Wednesday, 8 October, 2014
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BUY
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SKPETRO, TM, TENAGA
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SELL
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ASTRO, GENM, SIME
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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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MRCB(1651)
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8/10/2014
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RM1.59
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ACCUMULATE
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RM2.00
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Group’s new management
(Gapurna & MRCB) has proven to be effective as it has been successful in
realizing its transformation plans and getting back on its growth track. YTD,
the group has resolved the PJ Sentral Garden City tussle, injection of
Platinum Sentral into Qcap is on track and more disposal of MRCB’s prime office
(Shell Tower & Ascott Residence) into the Trust to follow imminently in
hopes to degear the group’s balance sheet further. Group has also announced
its role as master developer of the 26ha RRI land in SG Buloh which is
estimated to have a RM8bil of GDV (exp to start work in 1Q2015). Group’s
replenishment of orderbook shouldn’t be a concern as it currently has an
outstanding E&C order book of around RM1.1bn and unbilled property sales
of RM1.8bn which will keep them busy for at least the next 2 years. Although
the valuations might be hefty, the group is asset rich and its pipeline of
tenders and launches are expected to start yielding as soon as FY15. Share
price fell from its high of RM1.79 and looks to have found support at the
38.2% retracement support of RM1.59. Group is trading at 30-40% to RNAV of
analysts’ SOP. Accumulate on weakness. TP of RM2.00 which is 20% discount to
RNAV before factoring the MX-1 (RRI land) job flows as catalyst.
(RL)
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HARTA(5168)
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8/10/2014
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RM7.02
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TRIM
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-
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HARTALEGA (RM7.02) – Share price continue to
outperform the broad market gaining 26% since the end of May 15’ despite a
flattish revenue and lower net profit yoy due to an increase in electricity
and natural gas tariffs as well as maintenance costs. Group was also
unsuccessful in passing on the additional cost to consumers given the wide
range of competitors out there incurring a drop in margins. Group’s margin
will most likely see a strain in terms of operation expenses following more
hiring of workers of ahead of the NGC project which will commission end of
2014. Valuations appear expensive at 22x for FY15, 18x for FY16 compared to
peers. Technical charts are currently overbought with RSI crossing 60%, MACD
has also just turned down. We advocate a Trim on stock and switch to KOSSAN
for a better growth exposure or SUPERMX on undemanding valuations.
(RL)
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Calls for SEPT WEEK 4 / OCT
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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ORIENT (4006)
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30/9/2014
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RM7.79
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BUY
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RM9.00
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RM7.64
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-2.0%
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TENAGA (5347)
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30/9/2014
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RM12.28
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ACCUMULATE
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RM13.50
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RM12.58
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+2.4%
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IJM (3336)
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1/10/2014
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RM6.47
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BUY
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RM7.20
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RM6.47
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-0.0%
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UNISEM(5005)
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1/10/2014
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RM1.63
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Trading BUY
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RM1.80
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RM1.60
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-1.9%
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WELLCALL (7231)
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2/10/2014
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RM1.63
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ACCUMULATE
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RM1.83
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RM1.60
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-1.9%
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MBMR (5983)
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2/10/2014
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RM2.85
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Trading BUY
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RM3.50
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RM2.82
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+1.1%
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ELSOFT (0090)
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3/10/2014
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RM1.68
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Trading SELL
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-
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RM1.62
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+3.6%
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FABER (1368)
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3/10/2014
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RM3.21
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ACCUMULATE
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RM3.50
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RM3.24
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+0.9%
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MASTEEL (5098)
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7/10/2014
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RM1.03
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ACCUMULATE
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RM1.21
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RM1.02
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+1.0
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MBSB (1171)
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7/10/2014
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RM2.42
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TRIM
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-
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RM2.42
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0.0%
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Given that
our call initiated on the 22/9 to buy TMCLIFE (0101) has achieved our target
of RM0.60,
we advocate a take profit on the stock.
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Performance
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Positive
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Negative
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Neutral
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