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FLOWS
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Friday, 26 April, 2013
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BUY
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PETGAS, GENTING, IOICORP
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SELL
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TNB, ARMADA, AMBANK
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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
|
TARGET PRICE
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MUHIBAH(5703)
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26/4/2013
|
RM1.12
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ACCUMULATE
|
RM1.60
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Share price has retraced 16% from its recent high of RM1.33 and
currently sits on its neckline support of RM1.11. This is a good level to
accumulate as we see sustainable recovery in earnings on the back of healthy
orderbook of RM2.5bn and additional job replenishments. Ytd, Group has bagged
close to RM500mil in job coming mainly from ship building and MRT Co. Given
Muhibah past experience in major O&G platforms and terminals, they are
among the front runners for projects such as RAPID. Muhibah will also benefit
from Petronas planned high CAPEX in the region via its shipbuilding and
cranes business. Associate income via Cambodia Airports and Road maintenance
has also seen significant growth with contributions jumping 55% to RM55mil in
2012. We believe Muhibah is a deeply
undervalued stock and proxy to O&G sector. Adding 62% stake in Favco
(valued at RM275mil) and BV of associates (RM171mil) would yield close to
Muhibah’s market cap of RM457mil, essentially giving us core business such as
infra and shipbuilding for free. We advocate a BUY as it trades at only 5.6xFY13PE
against low teen valuation for O&G players with an estimated div yield of
4.3%. TP: RM1.60 (8xPE) (TYK)
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MAYBULK(5077)
|
26/4/2013
|
RM1.53
|
BUY on Weakness
|
RM1.80
|
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Share price has fallen 9% from its recent high of RM1.68. We see
strong support at RM1.50 and an opportunity to accumulate ahead of potential
listing of POSH in Singapore. POSH is among the major players in the OSV
segment as they own over 120 vessels incl anchor handlers, towing and harbour
tugs, barges, submersible barges, accommodation vessels, and crane barges.
Given its size and young fleet, its potential listing which will be decided
around mid July will most likely command premium valuation with market cap
over RM4bn. Maybulk has also ordered 3 vessels to coincide with the expected
market recovery by 2015. Although FY13 remains weak, we expect recovery in
2014 with significant contribution from POSH. At this juncture share price is
trading at P/B of 0.89x vs 7 yr average of 1.62x. Given 70% of its price is
supported by its 21.23% investment in POSH (RM885mil) and net cash of
RM175mil, we value Maybulk at RM1.80 (1xBV). (TYK)
 |
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Calls for APRIL Week 3-4
|
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|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
|||||||
|
HSL(6238)
|
19/4/2013
|
RM1.54
|
ACCUMULATE
|
RM1.74
|
RM1.50
|
-2.6%
|
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TAANN(5012)
|
19/4/2013
|
RM3.52
|
BUY on weakness
|
RM4.10
|
RM3.50
|
-0.6%
|
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|
TCHONG(4405)
|
22/4/2013
|
RM5.61
|
Take Profit
|
RM5.05
|
RM5.50
|
-2.0%
|
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|
MAHSING(8583)
|
22/4/2013
|
RM2.28
|
BUY
|
RM3.00
|
RM2.34
|
+2.6%
|
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|
SKPETRO(5218)
|
23/4/2013
|
RM3.10
|
BUY on weakness
|
RM3.80
|
RM3.02
|
-2.6%
|
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|
TOPGLOV(7113)
|
23/4/2013
|
RM6.09
|
Take Profit
|
RM5.50
|
RM6.27
|
+2.9%
|
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|
AMMB(1015)
|
24/4/2013
|
RM6.52
|
ACCUMULATE
|
RM7.30
|
RM6.61
|
+1.4%
|
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|
IJMLAND(5215)
|
24/4/2013
|
RM2.55
|
BUY on weakness
|
RM3.00
|
RM2.57
|
+0.8%
|
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|
BHIC(8133)
|
25/4/2013
|
RM2.20
|
ACCUMULATE
|
RM2.53
|
RM2.16
|
-1.8%
|
|||||||
|
MRCB(1651)
|
25/4/2013
|
RM1.38
|
BUY on weakness
|
RM1.68
|
RM1.37
|
-0.7%
|
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Friday, April 26, 2013
Morning Call | 26 April 2013
