FLOWS:
BUYS: TNB, Gamuda
SELLS: PChem, CIMB, MBB, Axiata
Techincal Stk Alert:
PChem (RM6.56) - stock has retraced 7% from a high of 7.03 this yr on concerns of lower utilization rates and gas supply issues. Recent selldown sees stk trading close to the 200days MACD lvl @ 6.50, with RSI at 40. Should it break below RM6.50, next support is seen at RM6.30. Believe it is at a good trading buy lvl now with immediate target price of RM6.80 and eventually RM7, supported by higher oil prices which translates to increase in O&G activities which is +ve for the grp's operations.
JCY (RM1.12) - Stk has retraced 36% from its peak of RM1.50 and is tethering at its head and shoulder formation neckline of RM1.13. Continue to take profit ahead of a possible break down to next immediate support at 80c on recent reports by competitors resuming their production to pre-flood lvls faster than anticipated. Co may lose its 1st mover advantage which saw co post record earnings from higher sales and better margins in recent qtrly results.
Stk of the Day:
Kimlun (RM1.56)
- Announced yesterday it's 3rd contract win within a month, comprising of 2 contracts totaling RM152m for construction works in Johor from SP Setia & Keck Seng.
-This brings total jobs won YTD to RM597m, improving total OB to a healthy RM1.65b. As Co had earlier projected job replenishment of RM600m for 2012, the contract win means it has met 99% of its projection.
- Other immediate rerating catalyst include: the Klang Valley MRT project where Kimlun remains the front runner for the tunnel works (RM200-250m) and Singapore MRT tunnel lining jobs (S$100m).
- MACD started to cut upwards supported by RSI inching upwards at 64.5 lvl, stk is poised to reclaim recent hi of RM1.70
- Trading at PERs of 7x for current year with a 3-year CAGR of 20%, stock remains a BUY with strong support at RM1.50.
