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FLOWS
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Tuesday, 6 November, 2012
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BUY
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MAYBANK, PCHEM,
AFFIN
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SELL
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BJTOTO, MRCB,ASTRO
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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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GENTING
(3182)
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06/11/2012
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RM9.03
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BUY
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RM9.68
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There
has been a marked shift in strategy for the last 1 month with the defensive
stocks like BAT and the telcos retracing substantially and the Malaysian KLCI
underperforming the regional markets. Funds have been reallocating to
the higher-beta stocks that are more sensitive to economic growth and better
times, with Macao casino stocks doing very well in the HKSE, gaining from 13%
to 22% the past month. Genting is an attractive proposition in this type of
environment as it is has a beta of 1.39 and is a favourite of the foreign
funds with its high liquidity and huge market cap for them to conveniently
move their funds. It has retraced and consolidated for the last 6 months and
looks to have bottomed. It is one of the cheapest casino stocks on an
EV/ebitda basis, and is trading at the lower end of its PER band with PER of
12.5x for FY13. In addition, its charts exhibit a rounding bottom formation
with positive divergences against its technical indicators, and recently
triggering buy signals with the stock piercing through the 8.98 – 9.00
resistance level. Buy
(PT)
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MALTON
(6181)
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06/11/2012
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RM0.55
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ACCUMULATE
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RM0.62
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A
property developer that is under the radar screen of the analyst
community, hence a stock with huge potential as the story is not yet told. It
also has construction and project management expertise which provides better
margins for its projects compared to sub-contracting the jobs to external
contractors. Its quarterly performance has been improving the last 3
quarters, and it now trades at very attractive valuations of historical
FY06/12 PER of 3.6x and a p/bk of 0.4x. Its on-going development projects are
in Bukit Rimau, Amaya Maluri and the VSQ Phase 2 corporate suites. It will be
launching a high end condominium project at Cantonment Road, Penang in
FY06/13. Despite a medium-to-small-sized developer, Malton has recently
managed to secure a JV with Batu Kawan Group for a joint development of
300 acres of land in Batu Kawan, Penang with an estimated GDV of RM3.8bn.
Malton will be responsible for the entire development financing and is entitled
to 82% of the GDV and the remaining accruing to Batu Kawan. This piece of
land is strategic as it is adjacent to the Penang Second Bridge. In addition,
Malton has settled out of court with Ho Hup Construction Co Bhd on their
tussle of the huge tract of land at Bukit Jalil. They have instead signed a
Supplementary Agreement for joint development for mutual interest and
benefits. The on-going projects and the potential of the future developments
will sustain and improve the company’s performance in the foreseeable future.
Accumulate ahead of stock discovery.
(PT)
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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
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TARGET
PRICE
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LAST
PRICE
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% Change since Initiated
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DIALOG (7277)
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30/10/2012
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RM2.36
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BUY
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RM2.58
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RM2.44
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3.3%
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GENM (4715)
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30/10/2012
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RM3.48
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Accumulate
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RM3.80
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RM3.48
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0.00%
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SENDAI (5205)
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31/10/2012
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RM1.44
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BUY
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RM1.65
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RM1.43
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0.03%
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JTIASA (4383)
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31/10/2012
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RM2.33
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Accumulate
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RM2.60
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RM2.24
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-4%
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MAS (3786)
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01/11/2012
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RM1.03
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TRADING BUY
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RM1.24
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RM1.03
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0.00%
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POS (4634)
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01/11/2012
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RM3.02
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BUY
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RM3.80
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RM3.00
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-0.06%
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ASTRO( 6399)
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02/11/2012
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RM2.71
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TRADING BUY
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RM2.86
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RM2.63
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-3.04%
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TEBRAU (1589)
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02/11/2012
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RM0.685
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TRADING BUY
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RM0.80
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RM0.68
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-0.07%
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APM (5015)
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05/11/2012
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RM4.86
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BUY
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RM5.15
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RM4.90
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0.8%
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SKPRES (7155)
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05/11/2012
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RM0.375
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BUY
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RM0.46
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RM0.375
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0.00%
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