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FLOWS
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Wednesday, 10 October 2012
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BUY
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PERISAI,
CIMB, AIRASIA
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SELL
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SIME,
MPHB, AXIATA
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Stock
Alert
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STOCK
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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KOSSAN (7153)
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10/10/2012
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RM3.05
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BUY
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RM4.00
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Share price has contracted c6% YTD, underperforming the FBMKLCI by 14%.We
believe it could be due for a re-rating in the near term, taking in view
valuations from the privatization of Adventa & Latexx recently. The offer
price of RM2.30 per share has effectively valued Latexx at 13.6x and 11.5x
for FY12 & FY13 respectively. The recent takeover offer for Adventa was
valued at 13x FY13 PE. We anticipate the recent takeover valuations of 11-13x
to serve as a new benchmark for selective glove companies, including Kossan.
Co, which has remained a laggard, is trading at compelling valuations of
below 9x for FY13 & P/BK of 1.7x. Benchmarking it to valuation of 11x
forward PE, TP of RM4 implies upside of 30% - Buy.
(AK)
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BENALEC (5190)
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10/10/2012
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RM1.30
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BUY on weakness
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RM1.48
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2) Benalec RM1.30 : The share price has added 8% on improved volume over the past 2
trading days. News reports have cited that Co was confident of striking a
deal to develop the first 250 acres of prime seafront land within the next
few months in South Johor, following the recent signing of a Development
Agreement (DA) with the Johor Govt. The DA also gives Benalec exclusive
rights to reclaim/develop 5,485 acres of prime seafront land in Pg Piai and
Pengerang into a future oil hub. Also reported that Co’s Pengerang landbank
may be included in RAPID’s masterplan. Benalec is a cheaper entry to the
repositioning of South Johor as an emerging O&G hub, trading at only
8-12x for FY13-15 vs O&G sector’s 18x. Contribution from the O&G
segment is expected to reach c65% of group EBIT in FY14-15. With gearing at
just 0.1x, Co has the B/S to embark on these sizeable projects – BOW.
Immediate target RM1.48
(AK)
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Calls
for OCT Week 1 / Week 2
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STOCK
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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LAST PRICE
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% CHANGE
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MAHB (5014)
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3/10/2012
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RM5.63
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ACCUMULATE
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RM5.84
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RM5.90
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5.51%
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MPHB (3859)
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3/10/2012
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RM3.56
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BUY
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RM3.80
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RM3.55
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0.28%
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WASEONG (5142)
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4/10/2012
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RM1.76
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ACCUMULATE
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RM1.92
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RM1.75
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-0.57%
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HIAPTECK (5072)
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4/10/2012
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RM0.49
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Long Term BUY
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RM0.60
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RM0.475
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-3.06%
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HSL (6238)
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5/10/2012
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RM1.57
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Trading BUY
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RM1.80
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RM1.56
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-0.64%
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DRBHCOM (1619)
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5/10/2012
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RM2.39
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Trading BUY
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RM2.70
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RM2.40
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0.42%
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QL (7084)
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8/10/2012
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RM3.20
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Trading BUY
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RM3.50
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RM3.20
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0.00%
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HLI (3301)
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8/10/2012
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RM4.70
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BUY
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RM5.12
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RM4.86
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3.4%
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UEMLAND (5148)
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9/10/2012
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RM1.83
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Trading BUY
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ST RM2.00
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RM1.84
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0.55%
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MUHIBAH (5703)
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9/10/2012
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RM0.93
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Trading BUY
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RM1.11
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RM0.93
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0.00%
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