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FLOWS
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Wednesday, 24 October, 2012
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BUY
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ASTRO, TM
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SELL
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TNB, SIME, MAYBANK
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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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SCABLE (5170)
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24/10/2012
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RM1.69
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BUY
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RM2.20
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SCable
RM1.69 : stk has jumped some 19% over the last 5 trading days after consolidating
around RM1.55lvls. But has since retraced 5% yesterday. Co is in the midst of
transforming from a pure cable & wire manufacturer into a one-stop
centre, which will enable it to access the power transmission industry’s
value chain and to tap into SCORE’s immense potential. The proposed
acquisition of a 100% stake in Trenergy (EPC contractor for transmission
lines) and buying out Sarwaja Timur ( fabrication of transmission towers
& other steel products) - targeted for end 2012 - will transform
the group into an integrated transmission line specialist. We see rising
contract momentum for SCable in the short term especially from SCORE. Co also
expects a new income stream from mini-hydro power generation starting 2014
via 65% owned PT Inpola Mitra Elektrindo. Major s/h: Sarawak Energy 21.5%,
Bekir Taib Mahmud 19.3%, Leader Universal 15.5%. Trading at just below 8x for
FY12/13, and a likely frontrunner & able to ride of the full value chain
for any power transmission project in Sarawak - BUY.
(AK)
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FABER (1368)
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24/10/2012
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RM1.49
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Trading Buy
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RM1.72
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2)
Faber RM1.49 : The share price has broken above the 100SMA on Oct 18 &
has since reached RM1.54. Despite there being no conclusive outcome on its
concession renewal, we see that the market has started to price in a higher
possibility of it getting the concessions renewed. We continue to believe
that the chance of renewal is high based on Co’s sound track record with the
government as well as the drive from its major shareholder Khazanah Nasional
( 34% stake). There is also now a potential for synergies at shareholders
level, with Khazanah also owning a 45% stake in IHH. A possibility of the 2
parties creating synergies in the future can’t be ruled out. With a potential
payout ratio of 40%, will translate to a net yield of about 5% in FY13. Co is
currently one of the cheapest healthcare stock listed on the KLSE, at 8.5x
FY12 PER, P:B 1.x and 30% disc to SOP of RM2.16 – Trading Buy. (AK)
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Calls for OCT Week 3 / Week 4
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STOCK
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Initiation Dates
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PRICE
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BUY/SELL
|
TARGET
PRICE
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LAST
PRICE
|
% Change since Initiated
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FITTERS (9318)
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17/10/2012
|
RM0.685
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Trading BUY
|
RM0.80
|
RM0.680
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-0.07%
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MRCB (1651)
|
17/10/2012
|
RM1.68
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Accumulate
|
RM1.90
|
RM1.68
|
0.00%
|
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MAYBULK (5077)
|
18/10/2012
|
RM1.44
|
Trading BUY
|
RM1.60
|
RM1.39
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-3.59%
|
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PADINI (7052)
|
18/10/2012
|
RM1.89
|
Accumulate
|
RM2.10
|
RM1.98
|
4.7%
|
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LIONIND (4235)
|
19/10/2012
|
RM1.10
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Strong BUY
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Mid
- RM1.70
|
RM1.07
|
0%
|
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FAVCO (7229)
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19/10/2012
|
RM1.63
|
Trading BUY
|
RM1.81
|
RM1.63
|
0%
|
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SUNWAY (5211)
|
22/10/2012
|
RM2.32
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Trading BUY
|
RM2.60
|
RM2.31
|
-0.4%
|
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HAIO (7668)
|
22/10/2012
|
RM2.18
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BUY
|
RM2.50
|
RM2.24
|
2.7%
|
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ARMADA (5210)
|
23/10/2012
|
RM3.70
|
BUY
|
RM4.20
|
RM3.70
|
0.00%
|
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PMETAL (8869)
|
23/10/2012
|
RM1.75
|
Trading BUY
|
RM1.91
|
RM1.73
|
1.15%
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Wednesday, October 24, 2012
Morning Call | 24 Oct 2012
