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FLOWS
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Friday, 15 March, 2013
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BUY
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MRCB, TM, UOADEV
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SELL
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ARMADA, GENTING, TENAGA
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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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MUHIBAH(5703)
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15/3/2013
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RM0.875
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BUY
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RM1.10
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Share price has remained largely depressed, c40% lower than the RM1.50
level a year ago, largely due to the APH issue. Co had conservatively made a
RM245m provision for APH in Q412, although it is still pursuing legal claims
for the outstanding receivables from APH. Excluding the provision, Co would
have achieved underlying PBT of RM203m in 2012, which is 82% higher that the
preceding year. We believe Muhibbah has turned a corner, with broad based
growth coming mainly from it’s crane unit Favelle Favco & it’s Cambodian
airport operations. Earnings visibility is high for the next 2 years, with OB
of RM2.2b ( infra-structure RM1.34b, crane RM0.6b, shipyard RM0.3b). Net
earnings is expected to recover to about RM80m in 2013, which will place the
stock’s PER at just 4.5x, with dividend yield at c5% . With the APH
uncertainties out of the way, Muhibbah appears attractively priced - Buy, TP
RM1.10 (AK)
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RHBCAP (1066)
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15/3/2013
|
RM8.30
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SELL
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RM7.80
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Share price has outperformed over the past
month, rising more than 10% to RM8.58 before settling at the current level.
This was probably on the back of the maiden consolidation with OSK, which
spurred revenue as well as pushed up loan growth in Q4. Gross impaired loan
ratio also fell to 2.99% in Dec 2012. We see this rise in share price an
opportunity to sell, as concerns of slower loan growth and weaker margins
still prevail. The acquisition of OSK Investment Bank is also expected to be
earnings dilutive in the short term ( benefits to arise only after 2014).
Group has also maintained that it is likely to contemplate a rights issue,
the size of which would be slightly larger than the cost of RM651m to acquire
Bank Mestika. All these, with the looming overhang of the coming GE13 -
Trading sell, with buyback closer to RM7.80. (AK)
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Calls for MARCH Week 1/Week 2
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STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
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MAS(3786)
|
7/3/2013
|
RM0.70
|
ACCUMULATE
|
RM0.785
|
RM0.715+
|
+0.21%
|
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SKEPETRO(5218)
|
7/3/2013
|
RM2.98
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BUY
|
RM3.22
|
RM3.06
|
+2.7%
|
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SUPERMX(7106)
|
8/3/2013
|
RM1.91
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ACCUMULATE
|
RM2.20
|
RM1.93
|
+1.05%
|
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SENDAI(5205)
|
8/3/2013
|
RM1.12
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BUY
|
RM1.40
|
RM1.13
|
+0.9%
|
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JCY(5161)
|
11/3/2013
|
RM0.525
|
TRIM
|
RM0.32
|
RM0.54
|
+2.86%
|
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GTRONIC(7022)
|
11/3/2013
|
RM1.82
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BUY
|
RM2.20
|
RM1.74
(ex 0.05)
|
-0.2%
|
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GENM(4715)
|
12/3/2013
|
RM3.58
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SWITCH
|
RM3.80
|
RM3.55
|
-0.8%
|
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IHH(5225)
|
12/3/2013
|
RM3.51
|
SELL into strength
|
RM3.30
|
RM3.45
|
-1.7%
|
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CMMT (5180)
|
13/3/2013
|
RM1.80
|
ACCUMULATE
|
RM2.00
|
RM1.77
|
-1.6%
|
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GASMSIA (5209)
|
13/3/2013
|
RM2.84
|
SELL into strength
|
Buyback RM2.60
|
RM2.84
|
+0.0%
|
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TOPGLOV (7113)
|
14/3/2013
|
RM5.50
|
Trading BUY
|
RM5.80
|
RM5.41
|
-1.6%
|
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CIMB (1023)
|
14/3/2013
|
RM7.11
|
SELL
|
RM6.50
|
RM7.09
|
-0.3%
|
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Monday, March 18, 2013
Morning Call | 15 March 2013
