Morning Call | 30 April 2013

FLOWS

Monday, 30 April 2013

BUY

MAYBANK, KLK, AFFIN

SELL

BJTOTO, MRCB, ASTRO

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

PETGAS(6033)

30/4/2013

RM19.64

SELL into stregth

RM18.50

Stock has recently been on uptrend ever since it broke above RM19 despite coming in short in latest earnings, affected somewhat by slower demand for propane and butane gas.  Negotiations on terms on existing supply agreement have begun with majority s/h Petronas-due to finalize agreement in coming months. The new contract is expected to include more variables with a separate processing and transmission agreement. The Melaka regassification plant has suffered numerous delays and targeted completion is sometime in June/Jul only. These –ves will continue to cap further price appreciation. Technically also looking stretched as RSI at 72 and valuations are rich with PER 25x and trading at lower end of its yield curve at mere 2.5%. (LJN)

PCHEM(5183)

30/4/2013

RM6.49

SELL into strength

RM6.00

Since our buy call on 4/12/12 at RM5.66, stocks has gained 15% and surpassed our initial target price of RM6.20. It has hit its technical resistance at current RM6.50 levels and trades at a pricey PER’14 of 13.6x v regional peers of average 10x. Limited near term catalyst to rerate stock as its industry outlook remains bleak, clouding any immediate capacity expansion plans. Co is due to announce its 1Q results end next month with full year consensus expecting RM3.8bn, 47.6c. Co has discontinued its vinyl business but its prevailing problems of weaker demand for olefins and higher raw material costs may continue. (LJN)

Calls for APRIL Week 3-4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

SKPETRO(5218)

23/4/2013

RM3.10

BUY on weakness

RM3.80

RM3.10

0.0%

TOPGLOV(7113)

23/4/2013

RM6.09

Take Profit

RM5.50

RM6.38

+5.0%

AMMB(1015)

24/4/2013

RM6.52

ACCUMULATE

RM7.30

RM6.68

+2.5%

IJMLAND(5215)

24/4/2013

RM2.55

BUY on weakness

RM3.00

RM2.59

+1.5%

BHIC(8133)

25/4/2013

RM2.20

ACCUMULATE

RM2.53

RM2.12

-3.7%

MRCB(1651)

25/4/2013

RM1.38

BUY on weakness

RM1.68

RM1.40

+1.4%

MUHIBAH(5703)

26/4/2013

RM1.12

ACCUMULATE

RM1.60

RM1.14

+1.7%

MAYBULK(5077)

26/4/2013

RM1.53

BUY on weakness

RM1.80

RM1.50

-2.0%

TENAGA(5347)

29/4/2013

RM7.83

TRIM

RM7.30

RM7.84

+0.1%

SPSETIA(8664)

29/4/2013

RM3.30

ACCUMULATE

RM4.40

RM3.40

-2.6%