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FLOWS
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Friday, 8th 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,
TOPGLOVE
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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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SUPERMX (7106)
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8/3/2013
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RM1.91
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ACCUMULATE
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RM2.20
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The share price has retraced c9% from its
recent high of RM2.09 in Jan 2013, despite results coming in within street’s
expectation. Fundamentals remain sound – as costs remain stable, hikes in ASP
to mitigate effect of minimum wage policies, global demand for gloves remain
strong and efficiency gains from new capex. Besides these, management’s
decision to raise dividend policy from 20% to 30% & its decision not to
move upstream should also be well received by investors. Its plan to expand
into emerging markets such as China & India should be positive in the
longer term. Co is currently trading at 9x FY13, a hefty 40% discount to that
of Top Glove, which we think is unjustified, given its net profit growth of
15% over the next 2 years. MACD has just cut up, RSI at 52 & it’s trading
below the SMA (100 days) of RM1.98 – Accumulate, TP 2.20.
(AK)
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SENDAI(5205)
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8/3/2013
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RM1.12
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BUY
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RM1.40
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Co recently announced that it had secured
it’s maiden project in Azerbaijan worth RM87m, bringing YTD jobs secured to
RM412m & outstanding OB close to RM2b, which could last it for another
2-3 years. Management has guided that it was in line for further contract
wins in the region. We continue to like the company, especially since the
share price has retreated c32% from its recent peak of RM1.64 in June 2012.
Group remains a good proxy to the infrastructure boom in the Middle East (esp
Qatar, who’s racing to build buildings & infrastructure ahead of the 2022
FIFA World Cup) as well as the Klang Valley MRT domestically for structural
steel works for stations. Other catalyst include Co being a preferred
structural steel specialist for international contractors & the potential
of Co moving into O&G sector via its investment in Technics. Trading at
just 6.6x FY12/13, Buy TP RM1.40.
(AK)
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Calls for FEB WEEK 3/4
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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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SCOMI(7158)
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28/2/2013
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RM0.315
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BUY
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RM0.37
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RM0.330
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+4.6%
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PUNCAK(6807)
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28/2/2013
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RM1.35
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Switch
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RM1.60
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RM1.39
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+2.9%
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MUDAJYA(5085)
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1/3/2013
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RM2.45
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ACCUMULATE
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RM2.90
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RM2.50
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+2.0%
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GAMUDA(5398WD)
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1/3/2013
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RM1.10
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BUY
|
RM1.30
|
RM1.17
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+6.3%
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E&O(3417)
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5/3/2013
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RM1.57
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ACCUMULATE
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RM1.82
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RM1.64
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+4.3%
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IJMLAND(5215)
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5/3/2013
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RM2.15
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BUY
|
RM2.62
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RM2.34
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+8.8%
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APM (5015)
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6/3/2013
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RM4.99
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ACCUMULATE
|
RM5.50
|
RM5.00
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+0.2%
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TEBRAU(1589)
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6/3/2013
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RM0.94
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BUY
|
RM1.40
|
RM0.975
|
+3.6%
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MAS(3786)
|
7/3/2013
|
RM0.70
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ACCUMULATE
|
RM0.785
|
RM0.70
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0.00%
|
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SKEPETRO(5218)
|
7/3/2013
|
RM2.98
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BUY
|
RM3.22
|
RM2.99
|
+0.3%
|
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Friday, March 8, 2013
Morning Call | 8 March 2013
