Morning Call | 19 March 2013

FLOWS

Tuesday, 19 March, 2013

BUY

CIMB, DIGI, PERDANA

SELL

GAMUDA, MUDAJAYA, MPHB

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

ARMADA(5210)

19/3/2013

RM3.72

ACCUMULATE

RM4.00

Armada (RM3.72) – dipped briefly to RM3.68 intraday low yesterday, almost hitting its neckline support lvl of RM3.65 with ultimate support at RM3.60, RSI 40. Stk has been trading within a tight range this yr despite recent award of RM2.3bn FPSO contract from ONGC, India. Anticipation is high that co will continue to secure another 1-2 FPSO charter contracts for the Belud (Msia) and Madura (Indo) fields. With recent newsflow on OSV players, Armada lags in terms of performance but co is positioning itself for deepwaters in Brazil, Africa and Msia as it is expanding in this segment from recent purchase of 4 MPSVs which yield higher rates. Another possible rerating catalyst for stk is Shell’s EOR contract which is expected to be awarded in June’13 which Armada is frontrunner. Trades at discount 20x to mkt leader SKPetro PER’13 26x-accumulate. (LJN)

SUNWAY(5211)

19/3/2013

RM2.73

Take Profit

Buyback RM2.50

Sunway (RM2.73) – stk peaked at RM2.82 in recent run up on IDR related stks. This is what we anticipated (refer morning call 8/1/13) but feel that stk has had a gd run of +15% and is poised to take a breather as technically a bit stretched-RSI 66 and MACD signaling overbought and cutting downwards situation even as px dipped below its 10D SMA. Also recently co was awarded RM452m BRT line but reaction was muted, further indicating stk is toppish. Potential RI and GE13 may see investors lock in profit ahead of events. Tentatively lock in profit with aim to buy back around RM2.50 (50D SMA). (LJN)

Calls for MARCH Week 2/Week 3

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

GENM(4715)

12/3/2013

RM3.58

SWITCH

RM3.80

RM3.47

-3.1%

IHH(5225)

12/3/2013

RM3.51

SELL into strength

RM3.30

RM3.44

-2.0%

CMMT (5180)

13/3/2013

RM1.80

ACCUMULATE

RM2.00

RM1.78

-1.1%

GASMSIA (5209)

13/3/2013

RM2.84

SELL into strength

Buyback RM2.60

RM2.85

+0.2%

TOPGLOV (7113)

14/3/2013

RM5.50

Trading BUY

RM5.80

RM5.39

-2.0%

CIMB (1023)

14/3/2013

RM7.11

SELL

RM6.50

RM7.06

-0.7%

MUHIBAH(5703)

15/3/2013

RM0.875

BUY

RM1.10

RM0.88

+0.5%

RHBCAP (1066)

15/3/2013

RM8.30

SELL

RM7.80

RM8.42

+1.4%

SIME(4197)

18/3/2013

RM9.00

Trading BUY

RM9.50

RM9.16

+1.7%

MAXIS(6012)

18/3/2013

RM6.50

TRIM

RM6.21

RM6.50

0.0%