MORNING CALL 19 JUNE
2012
FLOWS;
BUYS: Genting, Gamuda, SPSetia
SELLS: TNB, Sime, PCHEM
Technical Stock Alert;
CRESBLD (RM1.13) - The price is set to test a new year
high after consolidating around the RM1.05 levels in the past month ahead of
its private placement pricing. RSI is trending higher with MACD just cutting
upwards indicating a strong momentum building towards an immediate price target
of RM1.30. The company is in the midst of a transformation from a construction
company into a property developer with its JV project to redevelop the Dang
Wangi LRT Station with a GDV of RM1bn. It has also been linked as a JV partner
for the redevelopment of the Malaysian Rubber Board land on Jalan Ampang. Trading BUY
BHIC (RM2.85) - stock has retraced > 70% of the last
12-month rally from low of RM2.36 to high of RM4.05. The last 2 weeks' trading
exhibit base formation, coupled with the increased volume the last days, there
are indications of step-up accumulation. Technical indicators have turned
neutral to positive with potential positive divergences. Also reported that
insider bought recently on 12/6/12. BHIC should trade towards the short-term
bounce target of RM3.25. Trades at PER of FY12 12.2x and FY13 6.3x, attractive
compared to historical average of PER 15x. Gross order book of RM10bn, net
order book of RM3.6bn (i.e. revenue secured for the next 4 years), with the bulk
from the monopolistic-related naval contracts
which have superior margins to commercial contracts. As the only
reputable defence/security shipbuilder in M'sia, BHIC also consistently secures
multi-billion contracts from other government security-related agencies such as
the Police and the Maritime Enforcement Agency. Accumulate
(PT)