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FLOWS
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FRIDAY, 25 January, 2013
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BUY
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CIMB, KLK, YTL
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SELL
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DIALOG, IOIC, RHBCAP
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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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ACCUMULATE PRICE
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GASMSIA (5209)
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25/1/2013
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RM2.62
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DEFENSIVE ACCUMULATE
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RM2.53 >
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A solid
defensive stock with strong free cash flow (estimated to be 30%) &
earnings for FY12 – FY15. This is derived from a higher supply of gas from
parent, Petronas, arising mainly from the new Malacca regasification plant.
Management has also secured customers for 80% of this additional supply coming
in. Co is debt free and mgt has guided that capex has already peaked in
FY12 and is expected to be reduced by RM100m in FY13, hence the stock is
expected to provide dividend yield in excess of 4%. In addition, GasMsia has
very low foreign shareholdings, an appropriate shelter in the midst of an
approaching storm. Accumulate
(PT)
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PMETAL (8869)
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25/1/2013
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RM1.87
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ACCUMULATE on
weakness
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RM1.87 >
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With
the tripling of capacity once the expansion plans for phase 2 plant has been
fully commissioned in the current FY, the valuation of PMetal will drop
drastically from PER 19.3x in FY12 to 8.1x & 6.0x in FY13 & FY14
respectively, coupled with a strong eps CAGR of 23%. Stock is also selling
below book costs, at 0.70x p/bk. Aluminium prices have also outperformed
versus other commodities since commodities’ prices bottomed in Oct’12 -
rising 9% vs CRB Commodity Return Index 3%. This is a positive catalyst for
PMetal’s selling prices and bottomline. There are also only 2 aluminum
smelters in the growing Asean region, hence there is relatively less risk of
excess capacity and in addition, PMetal has comparative advantage because of
the long-term contractual cheaper power supply from Bakun. Accumulate on
weakness
(PT)
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Calls for JAN 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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ARMADA (5210)
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17/1/2013
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RM3.81
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ACCUMULATE
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RM4.12
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RM3.73
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-2.1%
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MALTON (6181)
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17/1/2013
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RM0.535
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Trading BUY
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RM0.62
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RM0.51
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-4.9%
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KNM (7164)
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18/1/2013
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RM0.525
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Trading BUY
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RM0.66
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RM0.50
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-5.0%
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SENDAI (5205)
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18/1/2013
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RM1.27
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ACCUMULATE
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RM1.87
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RM1.20
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-5.8%
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YTL (4677)
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21/1/2013
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RM1.80
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BUY on weakness
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RM2.00
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RM1.74
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-3.4%
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FITTERS (9318)
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21/1/2013
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RM0.63
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ACCUMULATE
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RM0.84
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RM0.60
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-5.0%
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GENTING (3182)
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22/1/2013
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RM9.58
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SELL
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RM8.48
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RM9.58
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0.00%
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YINSON (7293)
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22/1/2013
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RM2.13
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BUY
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RM2.70
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RM2.16
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+1.5%
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MEDIA (4502)
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23/1/2013
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RM2.17
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BUY
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RM2.40
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RM2.26
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+4.0%
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PADINI (1052)
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23/1/2013
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RM1.73
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BUY
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RM2.00
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RM1.78
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+2.9%
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