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FLOWS
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Monday, 10 November, 2014
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BUY
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SKPETRO, YTL, MAYBANK
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SELL
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MISC, TENAGA, MAXIS
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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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E&O(3417)
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10/11/2014
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RM2.55
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ACCUMULATE
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RM3.36
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We
see the recent share price weakness on the back of weak broader market an
opportunity to accumulate the stock. Fundamentally, group is on track to
complete the bonus, warrants & bonds issuance. The reclamation timeline
for STP2 is well on track. It is currently at the pre-qualification stage and
targets to award the reclamation tender in January and work to commence
following that. Group is likely to undertake a land sale for a select parcel
of commercial land to an established global developer, which we believe will
enhance STP2 land value & set a benchmark pricing. Last week, it
announced the acquisition of ESCA House (GDV RM400m), its second venture into
the London property market. We see this positive, given its proven track
record with the first project Princess House which was well received. Trading
at a steep discount of c48% to RNAV, we consider it unjustified given the
significant accretion to NAV from the STP2 project and it’s international
growth prospect & geographical diversification of its exposure to the UK
– Accumulate ( TP RM3.36 based on 30% disc to RNAV ).
(AK)
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KIMLUN (5171)
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10/11/2014
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RM1.42
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Reduce
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-
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Share price has been fairly
subdued over the past 3 months, hitting a low of RM1.31, due to slow
construction order-book replenishment and low construction margins. Price has
since rebounded to RM1.42. Although Kimlun remains an excellent proxy for the
Klang Valley MRT value chain, given its involvement in producing concrete
segments for the mega project, we are concerned about its prospect moving
forward. News-flow has been thin and slow with regards the MRT Line 2 and its
prospect for the Thompson Line has been clouded by the emergence of new
suppliers/competition coming into the equation. Recent meeting with
management suggested that the much talked about prospects of these 2 catalyst
( MRT Line 2 & Thompson Line) are not as rosy as earlier anticipated.
Manufacturing & construction margins are expected to remain subdued due
to product mix, higher manpower costs and depreciation costs. – Reduce
exposure in the share price recovery.
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Calls for OCT WEEK 4 / NOV
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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PANTECH (5125)
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31/10/2014
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RM0.97
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ACCUMULATE
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RM1.18
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RM0.97
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0.0%
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AIRPORT (5014)
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31/10/2014
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RM7.26
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TRIM
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RM6.60
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RM7.08
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-2.5%
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SALCON (8567)
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3/11/2014
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RM0.74
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TRADING BUY
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RM0.82
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RM0.75
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+1.3%
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GTRONIC (7022)
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3/11/2014
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RM4.52
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TRADING BUY
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RM4.99
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RM4.60
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+1.7%
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SOP (5126)
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4/11/2014
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RM5.75
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ACCUMULATE
on weakness
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RM6.20
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RM5.71
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-0.7%
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MMCCORP (2194)
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4/11/2014
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RM2.58
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BUY
– closer to RM2.30
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RM2.80
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RM2.52
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-2.4%
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PARKSON (5657)
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5/11/2014
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RM2.52
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BUY
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RM3.10
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RM2.53
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+0.3%
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SIME (4197)
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5/11/2014
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RM9.68
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BUY
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RM10.50
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RM9.60
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-0.9%
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KPS (5843)
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7/11/2014
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RM1.75
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Take Profit
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RM1.58
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RM1.68
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-4.0%
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SKPETRO (5218)
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7/11/2014
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RM3.14
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BUY
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RM3.75
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RM3.08
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-2.0%
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Performance
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Positive
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Negative
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Neutral
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