Morning Call | 28 March 2013

FLOWS

Thursday, 28 March, 2013

BUY

AIRASIA, MAYBANK, AXIATA

SELL

CIMB, GENM, IJM

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

MMCCORP(2194)

28/3/2013

RM2.55

BUY

RM2.75

The stock bottomed at 2.26 in Feb’13 and rebounded strongly to 2.50  levels before consolidating for the next 3 weeks in a 2.49 to 2.55 band. MMC is poised for a break-out from this flag pattern with attractive upside of 2.70/80. Technically, it has an attractive set up for both short term and longer term indicators as both the daily and weekly macd showed a recent positive crossover. MMC is also a laggard compared to other Iskandar-related stocks. It has  more than 2/3 of its asset value in Iskandar, Johor.  Recently MMC has started to unlock value with the sale of 400 acres of land in Senai. After this sale, it still has a remaining 4,300 acres of land in the Iskandar region. Other catalysts are the listing of Malakoff which is earnings accretive from the interest savings and the potential positive newsflows from its JV with Gamuda for the bidding of the other 2 MRT lines. Buy (PT)

MUDAJYA(5085)

28/3/2013

RM2.38

ACCUMULATE

RM2.70

Stock has underperformed the other construction stocks recently from a weaker Q4’12 results due to logistic issue on the transport of power plant equipment to India. However, management has guided recently that the assembly of the power plant equipment modules have begun and the overall progress of the plant is at 70%;  with the 1st phase targeted to be test-fired by end of CY13 and the balance by 1HCY14. Hence, Q1’13 results will show a significant jump in QoQ performance. The main catalyst for Mudajaya is the expected signing of the fuel supply agreement by 1HCY13, hence it is appropriate to start step-buying of the stock as we are already into the end of Q1. There are also signs of accumulation with volume increasing recently and the price charts depicting higher lows. It  has also been seeing consistent share buy-backs at current levels and it trades at an attractive PER of  5.0x for FY13 and 4.7x for FY114.  Accumulate (PT)

Calls for MARCH Week 3/Week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

PENERGY(5133)

21/3/2013

RM1.26

BUY

RM1.47

RM1.33

+5.5%

MULPHA(3905)

21/3/2013

RM0.405

Trading BUY

RM0.50

RM0.400

0.0%

KOSSAN(7153)

22/3/2013

RM3.47

BUY

RM3.94

RM3.48

-0.3%

UMW(4588)

22/3/2013

RM13.22

Trading SELL

RM12.20

RM13.42

+1.5%

DIGI (6947)

25/3/2013

RM4.42

ACCUMULATE

RM4.80

RM4.61

+4.2%

FAVCO(7229)

25/3/2013

RM1.75

Trading SELL

RM1.56-1.60

RM1.79

+2.2%

TM(4863)

26/3/2013

RM5.30

ACCUMULATE

RM5.80

RM5.40

+1.8%

AFG(2488)

26/3/2012

RM4.33

Trading BUY

RM5.20

RM4.40

+1.6%

MHB(5186)

27/3/2013

RM3.82

ACCUMULATE

RM4.40

RM3.79

-0.7%

BENALEC(5190)

27/3/2013

RM1.17

BUY

RM1.50

RM1.18

+0.9%