BUYS: CIMB, Maxis
SELLS: PChem, Dialog, TNB
Technical Stk Alert:
WTK (RM1.51) - showed signs of breaking out from recent RM1.50 high as
volume ballooned with MACD cutting upwards. Recent anticipated stronger
demand from Japan's plywood importers for start of spring in April and
normalization of overstocked warehouses will continue to drive plywood
exports higher. Industry sources also quote firmer plywood prices as
Japan begins reconstruction of houses after devastating earthquake.
Trades at attractive PER 9x-accum for next immediate target of RM1.65.
(GO/LJN)
Gamuda (RM3.65) - expect to announce 1HFY12 results later today coming
in line with annualised consensus of RM400m. 2Q net expect to be in
range of RM100-120m on better construction and property contribution.
However, believe Gamuda had to hire more staff and spent more money to
co-bid with MMC for the recently awarded MRT tunneling job tender.
Management might also revise their Vietnam property sales forecast lower
for FY12 - FY13 if things don't pan out as planned. Stk has retraced
from recent high of RM3.94 as excitement from MRT award has fizzled out.
Track for buying opportunity nearer RM3.55 next support
level.Technically, MACD closing gap and cutting upwards, RSI neutral at
48.8. Buy on weakness.
(LJL/LJN)
DRB (RM2.51) - Share price has fallen nearly 25% from this year's high
of RM3.26, back to RM2.50 immediate support levels (10/50SMA), RSI 39.
Trading at attractive valuations of FY13 P/Bk of 0.8x & PER of 11x.
Group remains the best proxy to VW's ambition to become a key Asean
player and share price should be well supported by it's massive RM7.5b
defense contract. Latest update from its Proton acquisition, DRB is
still in talks with Perodua on strategic collaboration between them in
hopes of maximising potential growth for co-trading buy.
(RL/LJN)
