|
FLOWS
|
Thursday, 25 April, 2013
|
||||||||||||
|
BUY
|
DIALOG, AFFIN, JCY
|
||||||||||||
|
SELL
|
TENAGA, AMMB, YTL
|
||||||||||||
|
STOCK ALERT
|
|||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
|||||||||
|
BHIC(8133)
|
25/4/2013
|
RM2.20
|
ACCUMULATE
|
RM2.53
|
|||||||||
|
Stock is trading
near 6-year low due to delay in award of the new batch of second generation
combat vessels following the completion of the last 6 patrol vessels in Dec
2010. Prolonged technical evaluations of weapons, equipment and parts with
overseas suppliers was the main reason for this delay. As a result the co shifted
focus to building commercial vessels which have lower margins and higher
credit risk due to the overcapacity in the commercial shipping sector and
shipyards post the global credit crisis. BHIC was landed with 3 chemical
tankers built for customers who defaulted due to severe conditions in the
industry. In addition, with fair value accounting, an impairment provision of
RM30m was made for these tankers in FY12. Currently these tankers are being
chartered out but the plan is to dispose of when they have the right price.
The co also suffered cost overruns & late delivery charges from the
competitive commercial contracts secured during the tough times. These legacy
contracts have been completed and the potential losses have substantially
been provided for in the last FY. BHIC may surprise on a significant
sustainable turnaround as it is starting on a clean slate and has returned to
its roots of focusing on high margin naval defense-related contracts with
wins of slightly above RM1bn in the last 6 months, resulting in outstanding
gross and net orders of RM10.5b & Rm3.5b respectively. With more
surveillance required for
 |
|||||||||||||
|
MRCB(1651)
|
25/4/2013
|
RM1.38
|
BUY on Weakness
|
RM1.68
|
|||||||||
|
MRCB(1.38) –
accumulate as stock has retraced 50% of its up move from the low of 1.21 to
1.54 due to the uncertainty of the impending elections and the
perception of being a politically-linked counter. This is a misconception as
EPF has been the largest shareholder (42% stake) for the last decade and is
expected to continue to enjoy the support of whichever coalition that wins
the elections. The timing is also appropriate as the EGM to approve the
recently proposed Nusa Gapurna acquisition will be held in June and this
exercise is very positive for MRCB as it addresses its depleting landbank from
the KL Sentral project which will be substantially completed in 2014. In
addition, 85% of the consideration is settled via the issue of shares priced
at 1.55, a 12% premium to the current price. Post the acquisition, MRCB will
also be helmed by an entrepreneurial CEO with a 22% interest in the co, who
will be better motivated to take the co forward.
 |
|||||||||||||
|
Calls for APRIL Week 3-4
|
|||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
|||||||
|
WASEONG(5142)
|
18/4/2013
|
RM1.63
|
ACCUMULATE
|
RM1.84
|
RM1.65
|
+1.2%
|
|||||||
|
PANTECH(5125)
|
18/4/2013
|
RM0.755
|
BUY
|
RM0.85
|
RM0.745
|
-1.3%
|
|||||||
|
HSL(6238)
|
19/4/2013
|
RM1.54
|
ACCUMULATE
|
RM1.74
|
RM1.50
|
-2.6%
|
|||||||
|
TAANN(5012)
|
19/4/2013
|
RM3.52
|
BUY on weakness
|
RM4.10
|
RM3.52
|
0.0%
|
|||||||
|
TCHONG(4405)
|
22/4/2013
|
RM5.61
|
Take Profit
|
RM5.05
|
RM5.50
|
-2.0%
|
|||||||
|
MAHSING(8583)
|
22/4/2013
|
RM2.28
|
BUY
|
RM3.00
|
RM2.31
|
+1.3%
|
|||||||
|
SKPETRO(5218)
|
23/4/2013
|
RM3.10
|
BUY on weakness
|
RM3.80
|
RM3.07
|
-1.0%
|
|||||||
|
TOPGLOV(7113)
|
23/4/2013
|
RM6.09
|
Take Profit
|
RM5.50
|
RM6.04
|
-0.8%
|
|||||||
|
AMMB(1015)
|
24/4/2013
|
RM6.52
|
ACCUMULATE
|
RM7.30
|
RM6.60
|
+1.2%
|
|||||||
|
IJMLAND(5215)
|
24/4/2013
|
RM2.55
|
BUY on weakness
|
RM3.00
|
RM2.57
|
+0.7%
|
|||||||
Thursday, April 25, 2013
Morning Call | 25 April 2013
