Morning Call | 16 April 2013

FLOWS

Tuesday, 16 April 2013

BUY

MAYBANK, KNM, CIMB

SELL

GENM, MRCB, AIRASIA

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

TAGB(5158)

16/4/2013

RM0.245

ACCUMULATE

RM0.33

This 2nd largest landbank owner in KLCC vicinity has been largely ignored since it debuted in 2009 at IPO of 50c. With recent interest in property names, this stk stands out as a big laggard in this space, languishing around RM0.225 lvls. Stk has halved in value since IPO whilst its asset/landbank values should have increased since then. Property investment contributes a huge 60% to its profits whilst from prop devm (40% earnings come from Australia). Co has been on acquisition spree over the yrs with 6 international hotels in their books currently. Earnings have climbed back up to 2009 days backed by stronger hotel operations and stable prop investment income from overseas. Past years, earnings have been dragged down by slow prop devm as but with recent renewed interest in property sector, its recent and future launches in Puchong and KLCC should propel co back into invetors’ radars. Technically trying to clear above its 200D SMA with immediate target of RM0.33. Trades at P:B 0.47x and yield of 3.67% (LJN)

IJM-WC (3336WC)

16/4/2013

RM1.36

BUY

RM1.80-RM2.00

IJM’s OB of RM2.5bn will last co over next 2-3yrs with further impending construction contracts from: WCE~RM4bn, ETP spending, MRT projs, RM5bn Warisan Merdeka and also the new Kuantan Deep Water Port. This further lends support to co’s improving construction margins. This pause in the recent run up shows technicals consolidating with MACD at oversold lvls, RSI 58. A cheaper alternative to trade on IJM’s bright prospects is to trade on IJM-WC which has a strike px of RM4 but gives 4x gearing. With IJM targets mostly around RM6, trading buy on the warrants for a target of between RM1.80-2.00 (LJN)

Calls for APRIL Week 2-3

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

CRESBLD(8591)

9/4/2013

RM0.95

Trading BUY

RM1.20

RM1.00

+5.2%

MYEG(0138)

9/4/2013

RM0.87

Trading BUY

RM1.20

RM0.835

-4.1%

KNM(7164)

10/4/2013

RM0.495

Trading BUY

RM0.60

RM0.470

-5.3%

YEELEE(5584)

10/4/2013

RM0.92

Trading BUY

RM1.10

RM0.895

-2.7%

DIALOG(7277)

11/4/2013

RM2.39

ACCUMULATE

RM2.80

RM2.36

-1.3%

GBGAQRS(5226)

11/4/2013

RM0.94

ACCUMULATE

RM1.04

RM0.915

-2.7%

CMSB(2852)

12/4/2013

RM3.25

ACCUMULATE

RM3.53

RM3.18

-2.2%

TDM(2054)

12/4/2013

RM4.52

Trading SELL

RM3.90

RM4.42

-2.2%

AIRASIA(5099)

15/4/2013

RM2.84

Situational BUY

RM3.30

RM2.80

-1.4%

DIGI(6947)

15/4/2013

RM4.69

Technical BUY

RM5.08

RM4.69

0.0%