Tuesday, August 28, 2012

Morning Call | 28 August 2012


MORNING CALL                                       28 AUGUST 2012

 

FLOWS;

 

BUYS: Sime, Genting, PChem

 

SELLS: KNM, Maybank, WCT

 

Technical Stock Alert;

 

KIAN JOO (RM2.73) - We are recommending take profits on the counter after it reached our medium term price objective of around RM2.80 (refer to our Buy note on 6th July). The current spurt is driven by the more aggressive dividend policy from the new management which will help Canone's cash flow, who owns 32.9%. Although the Nilai lines will provide new capacity and efficiency in the 2 piece cans, there is still execution risk with the current new board.

 

IHH ( RM3.11) - Accumulate as its price has settled into a support level around RM3.10 vs its IPO of RM2.80. Recent selling has been ahead of 2Q numbers due out today. The street consensus view is generally bullish on its medium to long term growth as one of the leading private health care provider in Emerging Markets with target prices as high as RM3.75.