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FLOWS
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Friday, 22 March, 2013
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BUY
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UEMLAND, AXIATA,
ARMADA
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SELL
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CIMB, GENM, WCT,
MAYBANK
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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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KOSSAN(7153)
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22/3/2013
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RM3.47
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BUY
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RM3.94
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Kossan
Rubber RM3.47: We believe Kossan is poised for a good 2013, possibly a
re-rating, on the back of improving fundamentals in the sector. Latex prices has
been stable, USD has been strengthening and the dynamics of supply/demand in
the sector has been improving. Even concerns about cost impact from minimum
wages & potential natural gas price hikes has been downplayed, by cost
pass-through, technology improvement & weaker MYR arguments. As for
Kossan specific, management has indicated there could be potential corporate
exercises to improve liquidity of the shares ( bonus / warrants) as well as
potential business ventures in Indonesia. We see Kossan as an excellent proxy
to these improving fundamentals, due to its cheap FY13 PE valuation of 9.3x
versus sector’s 12x – Buy (TP RM3.94, FY13 PE 10.5x).
(AK)
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UMW(4588)
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22/3/2013
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RM13.22
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Trading SELL
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RM12.20
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UMW
RM13.22: Stock has outperformed the FBMKLCI by c14% ytd, on the back of
strong Toyota sales, performances from the O&G & Equipment divisions
& the potential listing of its O&G division in 2013. We believe the
current share price has fully factored in these positives. On the other hand,
there is potential headwind in the auto sector as competition heats up
(aggressive price discounting, new models by competitors) may see margins
reduced as Co attempts to retain market share. We also think the appeal of
the O&G listing has been priced in. Group is trading at 14.1x FY13, above
its 5-year historical average of c12x. Thus, we see limited scope for further
meaningful upside in 2013; Trading sell, with buyback closer to RM12.20.
(AK)
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Calls for MARCH Week 2/Week 3
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STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
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MUHIBAH(5703)
|
15/3/2013
|
RM0.875
|
BUY
|
RM1.10
|
RM1.17
|
+33.7%
|
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RHBCAP (1066)
|
15/3/2013
|
RM8.30
|
SELL
|
RM7.80
|
RM8.51
|
+2.5%
|
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SIME(4197)
|
18/3/2013
|
RM9.00
|
Trading BUY
|
RM9.50
|
RM9.20
|
+2.1%
|
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MAXIS(6012)
|
18/3/2013
|
RM6.50
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TRIM
|
RM6.21
|
RM6.50
|
+0.0%
|
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ARMADA(5210)
|
19/3/2013
|
RM3.72
|
ACCUMULATE
|
RM4.00
|
RM3.79
|
+1.8%
|
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SUNWAY(5211)
|
19/3/2013
|
RM2.73
|
Take Profit
|
Buyback RM2.50
|
RM2.82
|
+3.2%
|
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PAVREIT(5212)
|
20/3/2013
|
RM1.58
|
SELL
|
RM1.45
|
RM1.62
|
+2.5%
|
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CARLSBG(2836)
|
20/3/2013
|
RM14.06
|
SELL
|
RM12.50-13.00
|
RM13.84
|
-1.6%
|
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PENERGY(5133)
|
21/3/2013
|
RM1.26
|
BUY
|
RM1.47
|
RM1.29
|
+2.3%
|
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MULPHA(3905)
|
21/3/2013
|
RM0.405
|
Trading BUY
|
RM0.50
|
RM0.415
|
+2.4%
|
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Friday, March 22, 2013
Morning Call | 22 March 2013
