Morning Call 8 JUNE 2012
FLOWS:
Buys: Maybank,
Genting
Sells: UEMLand,
TNB, AirAsia, Axiata
Techincal Stk Alert:
Sendai (RM1.53) - structural steel specialist which is
well positioned to take advantage of recent Govt initiative to build more power
plants in country. In addition it is stepping up efforts to increase its
presence in M.East (tendering for A.Dhabi Airport extension, National
Exhibition Centre etc) to enhance current OB of RM1.4bn. Co has secured RM844m contracts
ytd (well on track to achieve targeted RM1bn OB replenishment). Technically
poised for a rebound as stock is severely oversold with RSI 16, MACD widening
gap. Stk px retraced from a hi of RM1.78 to current support lvl of RM1.50, still below its
IPO px of RM1.62. Trades at cheap PER 8x, rerating catalyst on further proj
awards-Trading buy.(LJN)
KIMLUN (RM1.47): Company yesterday announced a contract
award worth RM48.8mil for precast concrete tunnel lining job for the Sungai
Buloh-Kajang MRT line. This brings its job won YTD to RM794mil or 1.2xFY11 turnover. This improves its orderbook to
RM1.85bn to last till 2015. Kimlun remains the front runner for further
tunnelling works/MRT in Malaysia and Singapore and buidling contracts from
Johor and K.Valley. Valuation is attractive at PER of 7.6xFY12 and 6.3xFY13
with MACD cutting up, hovering at 200day SMA support of RM1.47-Trading Buy
(TYK/LJN)