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FLOWS
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Friday, 12 December, 2014
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BUY
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GENTING, YTL, TM
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SELL
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AXIATA, UMW, FGV
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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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KPJ (5878)
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12/12/2014
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RM3.75
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TRIM
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-
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Co is expected to face earnings drag and
margin compression on three main fronts (1) new hospital openings which
require a gestation period of 2-3 years to break even, (2) higher operating
cost from additional staff and (3) GST implementation where Co is expected to
pass on costs to customers. This is expected to drive patient traffic to the
cheaper alternative of heavily subsidized government hospitals. As such, we
expect FY15 EPS to decrease to 11cents/share (vs 0.13cents EPS FY14)
implying an FY15 PER of 34x which we think is overvalued vs its 3 years
average of 28x PER, unattractive dividend yield of 1.8% FY15 and momentum
indicators turning negative, we suggest a Switch to AHEALTH.
(SPK)
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AHEALTH(7090)
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12/12/2014
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RM3.53
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ACCUMULATE
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RM4.00
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With market volatility not likely to abate soon, we see good value in
the defensive natured AHEALTH. Group has
undergone a transformation into a healthcare group from a
pharmaceutical-based company, venturing into direct-to-consumer healthcare
products, diagnostics and contract manufacturing of orthopaedic devices
providing growth whilst supported by a steady pharmaceutical division. Co’s venture into the orthopaedic
market is timely and prime to capitalize on a market that is expected to
record CAGR of 5% due to an ageing population globally, especially developed
markets. Additional catalysts moving forward include a major upgrade for its
manufacturing plant, increasing exports and widening reach into generic
drugs, prescription drugs for cardiovascular, cholesterol management and
antibiotics. Stock is fundamentally attractive with net cash of RM43m,
dividend yield of 3.4% and 10.1x PER FY15. Accumulate. (SPK)
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Calls for DEC WEEK 1/ WEEK 2 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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AFG (2488)
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04/12/2014
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RM4.77
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TRIM
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BB – RM4.20
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RM4.69
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-1.7%
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IHH (5225)
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04/12/2014
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RM4.78
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TRIM
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BB –RM4.20
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RM4.80
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+0.4%
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WPRTS (5246)
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08/12/2014
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RM3.30
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SELL
INTO STRENGTH
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BB – RM2.90
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RM3.34
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+1.2%
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IJM (3336)
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08/12/2014
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RM6.57
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ACCUMULATE
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RM7.20
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RM6.49
(ex 4 sens)
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-1.3%
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UNISEM(5005)
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09/12/2014
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RM1.95
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TAKE PROFIT
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BB – RM1.45
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RM1.94
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-0.6%
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PADINI (7052)
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09/12/2014
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RM1.63
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BUY ON WEAKNESS
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RM1.85
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RM1.61
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-1.3%
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CIMB(1023)
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10/12/2014
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RM5.41
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ACCUMULATE
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RM6.15
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RM5.50
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+1.6%
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PETDAG(5681)
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10/12/2014
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RM17.62
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TRADING BUY
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RM20.86
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RM16.70
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-5.3%
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TITIJYA (5239)
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11/12/2014
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RM1.76
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BUY
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RM2.50
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RM1.79
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+1.7%
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TMCLIFE (0101)
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11/12/2014
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RM0.48
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TRADING BUY
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RM0.55
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RM0.465
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-3.2%
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Performance
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Positive
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Negative
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Neutral
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