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FLOWS
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Monday, 17 June 2013
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BUY
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AMBANK, UEMLAND, KLK
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SELL
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JCY, MAYBANK, MRCB
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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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GADANG
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17/6/2013
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RM0.81
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BUY
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RM1.04
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The
share price has retraced c16% in the recent pull back after a strong ascend
from early May (+60%). Judging from contracts win of late, Gadang is
increasingly being seen as an emerging civil engineering giant. OB is healthy
at RM1.4b, which should support earnings visibility until 2016. We see group
securing cRM500 jobs every year, given the robust construction sector, Co's
strong track record & strong B/S (net cash/share of 25s). The improving
profitability of the group is expected to continue after FY13. Besides
construction, we also like Gadang's efforts to diversify into property,
utilities & plantation. Currently trading at forward PE of 6.3x, a 20%
discount to its small cap construction peer's average PE of 8x for FY14. We
deem this discount unwarranted - Buy (TP RM1.04, PE8x FY05/14).
(AK)
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DELEUM(5132)
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17/6/2013
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RM3.06
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ACCUMULATE
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RM3.50
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The recent pullback in price from its recent high
of RM3.85 (c20%) should appeal to investors. For a small O&G service
provider, its outstanding OB of RM1.4b (largely made up of long term service
contracts in the Power & Machinery and Oilfield Services segments) should
last the group into 2018. Gas turbine servicing & retrofit projects will
provide core sustainable income going forward (60-70%). Recurring income is
also secured under the OFS segment, via slick line umbrella contracts for
Sabah & Sarawak. Riding on the O&G uptrend, we expect to see
continued net profit growth into FY14 & 15. Catalyst ahead include
additional Pan Malaysian contract in OFS, ad-hoc retrofit works, turnaround
in its Maintenance, repair & overhaul ( MRO) segment. Trading at forward
PE of 8.8x FY14, it’s still at a discount to peers ( UZMA 11x, closest peer)
& industry PER. Healthy dividend payout of c50% pa could provide yields
of c 5.5% for FY13. Potential value play in O&G – Accumulate (TP RM3.50
at FY14 10x PE).
(AK)
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Calls for JUNE Week 1 &2
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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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PMETAL(8869)
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10/6/2013
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RM2.57
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ACCUMULATE
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RM3.00
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RM2.50
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-2.8%
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MUHIBAH(5703)
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10/6/2013
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RM1.43
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BUY
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RM2.09
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RM1.37
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-4.2%
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PARKSON(5657)
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11/6/2013
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RM3.80
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ACCUMULATE
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RM4.45
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RM3.90
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+2.6%
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QL(7084)
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11/6/2013
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RM3.29
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Trading BUY
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RM3.59
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RM3.20
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-2.7%
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TM(4863)
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12/6/2013
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RM5.45
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ACCUMULATE
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RM6.00
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RM5.46
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-0.1%
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DSONIC(5216)
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12/6/2013
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RM3.16
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SELL
into Strength
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RM2.50
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RM2.99
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-5.6%
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GCB(5102)
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13/6/2013
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RM1.75
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BUY
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RM2.40
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RM1.74
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-0.6%
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NOTION(0083)
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13/6/2013
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RM0.76
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BUY
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RM0.89
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RM0.74
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-2.7%
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MAYBANK(1155)
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14/6/2013
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RM10.04
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BUY
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RM10.58
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RM10.18
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+1.3%
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MRCB(1651)
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14/6/2013
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RM1.55
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BUY
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RM1.80
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RM1.59
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+2.6%
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