Morning Call | 8 Nov 2012

FLOWS

Thursday,8 November, 2012

BUY

YTL, MRCB,AXIATA

SELL

MAYBANK,DRBHCOM, AMMB

Stock Alert

STOCK

DATE

PRICE

BUY/SELL

TARGET PRICE

BJTOTO (1562)

08/11/2012

RM4.32

Defensive BUY

RM4.65

Share price experienced a dip recently as it is apparently facing regulatory hurdles in getting listing approvals fro STM Trust due to the sensitive nature of its gaming license (NFOs) ahead of elections in Malaysia. This could push its targeted listing date back a few months.  The proposal however has received approvals from BNM as well as MOF of Malaysia. Post listing, group would consider distributing a substantial portion of its remaining 3.89bn units in STMT back to existing shareholders and also distribute part of the money raised back to shareholders. Current set up has consistently delivered an attractive yield of 6%. RSI only 37, MACD continues to widen.  Defensive BUY (RL)

SUPERMX(7106)

08/11/2012

RM2.07

ACCUMULATE

RM2.30

the share price has consolidated at current levels for the past 2 months. We think Supermax offers a cheap proxy to the glove sector, which should benefit from lower latex prices & a stronger USD. The recent takeover offer valuation of 11-13x forward PE of Latexx Partner by Semperit may soon serve as a new benchmark for selective glove companies. Supermax which trades at less than 10x FY13 PE, as the world’s 2nd largest glove maker in terms of production capacity, should likely trade closer to 11x in the near future. Also the discount to Topglove @ PE of 16x should also narrow given it’s improved fundamentals. Unlike some of its peers which are going upstream, Supermax said it will continue to focus on its strength in downstream through global sales & marketing, another likely positive. Management has guided for 20% earnings growth for FY12 & with an average 15-20% growth pa for the next 5 years – Accumulate on any weakness. (AK)

Calls for OCT Week 3 / Week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

MAS (3786)

01/11/2012

RM1.03

TRADING BUY

RM1.24

RM1.03

0.00%

POS (4634)

01/11/2012

RM3.02

BUY

RM3.80

RM3.00

-0.06%

ASTRO( 6399)

02/11/2012

RM2.71

TRADING BUY

RM2.86

RM2.63

-3.04%

TEBRAU (1589)

02/11/2012

RM0.685

TRADING BUY

RM0.80

RM0.68

-0.07%

APM (5015)

05/11/2012

RM4.86

BUY

RM5.15

RM4.90

0.8%

SKPRES (7155)

05/11/2012

RM0.375

BUY

RM0.46

RM0.375

0.00%

TM (5863)

07/11/2012

RM5.69

Buy on weakness

RM6.00

RM5.60

-1.6%

AXIATA (6888)

07/11/2012

RM6.02

HOLD

-

RM5.83

-

DIGI (6947)

07/11/2012

RM5.09

HOLD

-

RM5.02

-

MAXIS (6012)

07/11/2012

RM6.74

Buy On weakness

RM7.15

RM6.75

+0.15%