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FLOWS
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Friday, 11 January, 2013
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BUY
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CIMB, IOIC, PERDANA
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SELL
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DIALOG, JCY, KLK
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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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MISC (3816)
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11/1/2013
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RM4.15
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Trading BUY
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RM4.80
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The share price
has retraced c32% ytd and has consolidated around the RM4.10 level for the
past 1.5 months. It’s 9MFY12/12 core net profit came in below expectations,
largely due to the higher than expected final losses from the now defunct
container shipping business. However, management has guided for a seasonally
stronger 4Q, mainly due to stronger petroleum tanker freight rates ahead of
winter months in the northern hemisphere. Chemical freight rates are unlikely
to recover significantly in the short term due to slowdown in manufacturing
activities worldwide, particularly China. With the continued lending curb on
the shipping sector by European Banks & consolidation in the global
shipping sector, there’s a strong likelihood that a sustainable recovery can
come about. We believe this to be a good time to position for the recovery,
the play backed by the steep decline of MISC’s share price ytd, worst in
financial performance seen to be over & the superior solvency strength of
major shareholder Petronas – Trading Buy, TP of RM4.80 ( 1x P/Bk).(AK)
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WCT-WB (9679WB)
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11/1/2013
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RM0.435
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ACCUMULATE
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RM1.00
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Contract flows
has been very strong with the 2012 sum at RM1.9b, compared to the meager
RM187m the year prior. Group’s OB stands at RM3.2b, with 55% located in the
Middle East (Qatar & Oman). It’s active tender book @ RM3.5b. Besides
these, WCT also has a strong chance to secure the RM3b race course project in
Iskandar Malaysia ( Peter Lim, Johor royal family & Khazanah’s project )
as Co has built 3 of the designer’s other F1 race tracks. On its Property division,
management has maintained its FY12 sales target of RM700m (estimated YTD
sales to Nov @ RM600m). Management acknowledges the potential steep net
gearing rise given its land-banking activities (OUG land, Kemayan Mall in JB
& Medini) & guides to keep it below 1x. The share price has
consolidated cRM2.40 level for the past 2 months, implying a FY13 PE of 10.3x
(below its long term forward mean of 14x). We expect share price to recover
once election risk dissipates, TP RM3.00 ( PE 13x FY13) – Accumulate WCT-WB (
trading at a 5.2% disc - exercise price RM1.85, ratio 1:1, gearing 5.45, mat
date 22/04/2013), which offers a cheaper entry to WCT.(AK)
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Calls for JAN WEEK 1/WEEK 2
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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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MBMR (5983)
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4/1/2013
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RM3.37
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Accumulate
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RM4.00
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RM3.30
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-2.0%
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PERDANA (7108)
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4/1/2013
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RM1.13
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Trading BUY
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RM1.30
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RM1.21
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+6.7%
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RHBCAP(1066)
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7/1/2013
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RM7.77
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BUY
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RM8.40
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RM7.83
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+0.8%
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TIMECOM (5031)
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7/1/2013
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RM3.96
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BUY
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RM4.32
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RM4.10
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+3.5%
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PENERGY (5133)
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8/1/2013
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RM1.60
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ACCUMULATE
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RM2.00
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RM1.59
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-0.6%
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SUNWAY (5211)
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8/1/2013
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RM2.43
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BUY
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RM3.00
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RM2.42
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-0.3%
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UOADEV (5200)
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9/1/2013
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RM1.77
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BUY
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RM2.70
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RM1.80
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+1.7%
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MUDAJYA (5085)
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9/1/2013
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RM2.69
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BUY
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RM3.64
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RM2.74
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+2.1%
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DIALOG (7277)
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10/1/2013
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RM2.43
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ACCUMULATE
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RM2.90
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RM2.40
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-1.2%
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SCOMI (7158
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10/1/2013
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RM0.365
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Trading BUY
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RM0.41
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RM0.360
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-1.5%
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