FLOWS
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Friday, 23 Nov 2012
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BUY
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SIME, AMMB, AXIATA
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SELL
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DIGI,JCY, AIRASIA
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STOCK ALERT
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STOCK NAME
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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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WASEONG (5142)
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23/11/2012
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RM1.80
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Accumulate
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RM2.00
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A major O&G laggard despite improving
newsflow. Fundamentals for next year remain strong as in addition to deep
water Phase 2 Turkmenistan, WSC is still eyeing more than 10 other higher
deep water jobs in the gulf of Mexica through its 49% JV with Insituform
Technologies. WSC is also targeting higher margins with “Hell Oil” pipe
coating jobs (currently developing super high temperature solutions with Dow
Chemicals). It is also the leading contender for local pipe coating bids in
the North Malay Basin. Co currently only trades at about 11.3x FY13, falling
to 10.8x FY14. The price has been on a steady climb recently and a break out
above the RM1.80 could see it retest RM2.00 resistance immediately.
Accumulate.
(AK)
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MBSB (1171)
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23/11/2012
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RM2.34
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Trading BUY
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RM2.80
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Co recently released 3Q12 results which were
in line despite a higher tax charge (RM22m due to under provision in the
previous year). Management had earlier guided for good earnings growth for
the rest of FY12, led by substantial loan disbursement and a healthy recovery
in its interest income and marginal NIM compressions. Although Q3 loan growth
moderated given that the promotional “Zero transfer package” PF-I campaign
that led to the strong loan growth had ended in 2Q12, we should likely see a
healthy recovery in fee based income from Q2 henceforth since subsidizing the
package is no longer required. Group’s main strategy now is to build on its
HP loans, which currently only accounts for 1% of its total RM20b gross loans
(banking average of 14%). MBSB is also a prime candidate for M&A activity
in the sector. Trading at P/Bk of 1.7x and PER 7.1x for FY13 – Trading buy,
immediate target RM2.80.
(AK)
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Calls for NOV Week 2 / Week 3
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STOCK
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Initiation Dates
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Initiation price
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BUY/SELL
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TARGET
PRICE
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LAST
PRICE
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% Change since Initiated
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COASTAL (5071)
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16/11/2012
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RM2.01
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BUY
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RM2.40
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RM2.01
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0.00%
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QL (7084)
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16/11/2012
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RM3.15
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BUY
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RM3.55
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RM3.12
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+0.9%
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YTLP (6742)
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19/11/2012
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RM1.53
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BUY
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RM1.70
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RM1.53
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+0.00%
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RHBCAP (1066)
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19/11/2012
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RM7.60
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BUY
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RM8.20
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RM7.42
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-2.4%
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MBMR (5983)
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20/11/2012
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RM3.42
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BUY
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RM3.72
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RM3.40
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-0.6%
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KIMLUN (5171)
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20/11/2012
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RM1.33
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Trading BUY
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RM1.60
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RM1.37
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+2.2%
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YINSON (7293)
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21/11/2012
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RM1.84
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MT BUY
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RM2.67
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RM1.90
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+3.2%
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CYPARK (5148)
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21/11/2012
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RM1.56
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Trading BUY
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RM2.00
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RM1.56
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0.00%
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KNM (7164)
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22/11/2012
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RM0.50
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Trading BUY
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RM0.585
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RM0.485
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-3.0%
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GENM (4715)
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22/11/2012
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RM3.45
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Accumulate
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RM3.68
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RM3.46
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+0.1%
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