Morning Calls | 29 Oct 2012

FLOWS

Monday, 29 October, 2012

BUY

MAYBANK, PCHEM, AXIATA

SELL

BJTOTO, MISC, DRBHCOM

Stock Alert

STOCK

DATE

PRICE

BUY/SELL

TARGET PRICE

TRC (5054)

29/10/2012

RM0.585

BUY

RM0.73

TRC (RM0.585): Recent pick up in buying interest of construction names such as MRCB, Gamuda and HSL could see spillover effect into TRC Synergy which is trading near its ytd low of RM0.58. Share price has consolidated around the RM0.58-0.60 level for almost 2 months with volume showing signs of picking up in the last trading session. Weakness in share price could be due to disappointing 1H2012 earnings which was only at RM1mil. However earnings is expected to recover in 2H and beyond on the back of its orderbook which stands at RM2.1bn or 6.2xFY11 revenue. Orderbook are mainly from the LRT (RM950mil) and MRT (743mil). Trades at only 7xFY13PE with net cash of RM0.126 capping downside. Breaking above RM0.62 would clear its downward trend with mid term target of RM0.73     (TYK)

MKLAND (8893)

29/10/2012

RM0.375

Buy

RM0.465

MKLAND (RM0.375): Share price has consolidated well within the range of RM0.36-RM0.38 since recovering from its low of RM0.315 as it looks poised to resume its uptrend and retest its recent high of RM0.435 back in August. Should it break above the RM0.39 neckline share price could reach another high of RM0.465. MACD has also just turned positive. Buying interest in MKLAND has picked up recently as they are the largest land owner in Damansara Perdana with land size measuring 586acres. Carry value of the land is only at RM16.50psf compared to recent sale of RM111psf in 2011.This is the last large tract of land in the vicinity that will benefit from accessibility to the MRT station as well as governments infrastructure and land development in the nearby rubber reserve land.  Trades at only 0.5xPBV and net gearing of 0.1x.      (TYK)

Calls for OCT Week 3 / Week 4

STOCK

Initiation Dates

PRICE

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

LIONIND (4235)

19/10/2012

RM1.10

Strong BUY

Mid - RM1.70

RM1.11

0.90%

FAVCO (7229)

19/10/2012

RM1.63

Trading BUY

RM1.81

RM1.65

1.20%

SUNWAY (5211)

22/10/2012

RM2.32

Trading BUY

RM2.60

RM2.40

3.40%

HAIO (7668)

22/10/2012

RM2.18

BUY

RM2.50

RM2.20

0.90%

ARMADA (5210)

23/10/2012

RM3.70

BUY

RM4.20

RM3.80

2.70%

PMETAL (8869)

23/10/2012

RM1.75

Trading BUY

RM1.91

RM1.73

-0.11%

SCABLE (5170)

24/10/2012

RM1.69

BUY

RM2.20

RM1.70

0.59%

FABER (1368)

24/10/2012

RM1.49

Trading BUY

RM1.72

RM1.48

-0.67%

DIJACOR (5401)

25/10/2012

RM1.04

Trading BUY

RM1.20

RM1.05

0.96%

MAXIS (6012)

25/10/2012

RM6.89

Buy

RM 7.50

RM6.93

0.58%