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FLOWS
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Monday, 3 November 2014
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BUY
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TENAGA, SKPETRO, GENP
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SELL
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YTLP, RHBCAP,
IOICORP
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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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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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Salcon (RM0.74) – Group is an
under-researched small cap water and sewerage that will look to capitalize on
the on going water/wastewater- related expenditure under the 10th
Msia plans, (E.g RAPID project and the Langat 2.) Group’s growth prospects
remains compelling as it has secured RM645mil orderbook & has an outstanding
tenderbook of RM2.2bil with an expected 20-30% success rate with an
expected pretax margin of 10%. Moving forward, the group also plans to
expand its property dev biz via a JV with Ecoworld that’s expected to start
materializing an RM1.2bn GDV mixed dev project in Johor next year which would
contribute positively to earnings for the next 2-3 years. Balance sheet
remains healthy as the group has a net cash of 57cents after disposing of its
China asset, which brings its PE to just 4x excluding its cashpile. Technical
charts revealed an ascending triangle with a breakout TP of 8 cents from its
neckline (RM0.74). Weekly MACD turning up. Trading BUY with a target of
RM0.82 and eventually RM0.90 accounting expected news flows from Langat 2
towards the year end.
(RL)
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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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GTRONIC (RM4.52) – Share price broke below
its long term uptrend over the past 3 months swinging from a high of RM5.20
to RM3.60 before recovering to RM4.52 on Friday (3/11/2015). While there are
no changes in fundamental, the group’s growth moving forward will be driven
by more high margins sensor products. The group has revealed its plans to
venture into manufacturing medical related sensors catered to its Swiss and US
clients which will unfold early 2015 and contribute positively towards the
group’s earnings; the group also indicated a new product transfer from its
LED/ solid state lighting from its Japanese customer that would further
enhance its 2015 earnings . We think that the group deserve to be trading at
the a slight premium to the sector for its excellent track record in its
earnings delivery (negating negative reports regarding slowdown in global
semiconductor demands), solid management team leading the group as well its
ability to maintain a 3 year CAGR of 24%. Group is net cash of RM158mil,
trading at 14x PE for FY16 and pays 5.5% div. Technical chart looks ripe for
a rebound as it formed a ascending flag with a 50 cents upside (11% upside)
from its neckline of RM4.49. Trading BUY with an immediate target px of
RM4.99.
(RL)
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Calls for SEPT OCT 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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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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RM2.27
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-2.2%
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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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RM3.44
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+4.2%
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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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RM2.07
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+3.5%
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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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RM6.74
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+0.8%
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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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RM2.02
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+7.4%
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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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RM0.985
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+4.7%
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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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RM2.61
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+7.8%
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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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RM1.56
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+5.4%
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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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RM0.975
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+0.5%
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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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RM7.22
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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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