|
FLOWS
|
Monday, 24 June, 2013
|
||||||||||||
|
BUY
|
CIMB, DIALOG, GTRONIC
|
||||||||||||
|
SELL
|
MAS, PBBANK, AXIATA
|
||||||||||||
|
STOCK ALERT
|
|||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
|||||||||
|
FAVCO(7229)
|
24/6/2013
|
RM2.86
|
ACCUMULATE
|
RM3.40
|
|||||||||
|
Co’s (a 62% subsidiary of Muhibbah
Engineering) share price has pulled back c10% in the recent correction. With
its core business in the manufacturing of customized cranes for the offshore
O&G, construction & port & wharfs industries, Co is very well
positioned to benefit from the heightening activities in these sectors. This
is evident from the recent contract wins, which brought YTD orders to RM316m
& OB to MR645m as at end-May 2013. There’s reason to believe this trend
will continue strongly into 2HY2013 given the robust O&G activities in
the region. Some 85% of the OB are O&G cranes while 83% are from oversea
customers. Although Co has yet to have a formal dividend policy, it has
distributed more than 20% annually, translating to yields c3.5%. Currently
trading at c7.3x FY14, we see valuation does not reflect its growth
potential; Accumulate (TP RM3.40 based on PE 9x FY14).
(AK)
 |
|||||||||||||
|
TROP-WA(5401WA)
|
24/6/2013
|
RM0.865
|
Trading BUY
|
RM1.50
|
|||||||||
|
Group is now entering the transformation stage
after the amalgamation exercise in 3Q2012. It has a total GDV of RM50b (vs market
cap of RM1.8b), holds many prime landbanks in matured areas (incl Kota
Damansara, Cheras, Subang Jaya, Penang) & is the 3rd largest
listed big cap landbank owner in Iskandar ( behind UEMS & Sunway). Group
is also in the midst of de-gearing it’s BS by sale of pocket landbanks this
year (current gearing 0.77x to 0.5x in the next 12 months & eventually to
0.3x if land sell-down fully executed). The group also offers decent dividend
yields of c4%, which is higher than the typical developer’s 1-4%. It’s Q1 PAT
of RM44m was within consensus, in line to achieve PAT of RM166m FY13,
translating to EPS of 17s & PE of 11x, with P/BK at c0.6x (vs other
developers > 1b market cap’s PE of c12x & P/BK of 1.3x). We believe
the market has yet to fully factor in the full prospects of the company -
Trading Buy WA (Maturity 6.5 years, gearing 2.15x, no premium). (TP RM1.50,
P/BK 1x & 30% disc to RNAV RM3.58).
(AK)
 |
|||||||||||||
|
Calls for JUNE Week 2 & 3
|
|||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
|||||||
|
GADANG(9261)
|
17/6/2013
|
RM0.81
|
BUY
|
RM1.04
|
RM0.84
|
+3.7%
|
|||||||
|
DELEUM(5132)
|
17/6/2013
|
RM3.06
|
ACCUMULATE
|
RM3.50
|
RM3.12
|
+1.9%
|
|||||||
|
SUPERMX(7106)
|
18/6/2013
|
RM1.91
|
BUY on weakness
|
RM2.40
|
RM1.98
|
+3.6%
|
|||||||
|
MAHSING (8583)
|
18/6/2013
|
RM2.86
|
BUY
|
RM3.60
|
RM2.98
|
+4.2%
|
|||||||
|
SKPRES(7155)
|
19/6/2013
|
RM0.315
|
BUY
|
RM0.37
|
RM0.31
|
-1.6%
|
|||||||
|
YTLLAND(2577)
|
19/6/2013
|
RM1.12
|
BUY
|
RM1.36
|
RM1.08
|
-3.6%
|
|||||||
|
KKB(9466)
|
20/6/2013
|
RM2.10
|
ACCUMULATE
|
RM2.80
|
RM1.96
|
-6.6%
|
|||||||
|
CANONE(5105)
|
20/6/2013
|
RM3.44
|
ACCUMULATE
|
RM5.00
|
RM3.34
|
-3.0%
|
|||||||
|
IHH(5225)
|
21/6/2013
|
RM4.03
|
TAKE PROFIT
|
-
|
RM3.95
|
-2.0%
|
|||||||
|
E&O(3417)
|
21/6/2013
|
RM1.84
|
BUY
|
RM2.05
|
RM1.83
|
-0.6%
|
|||||||
Monday, June 24, 2013
Morning Call | 24 June 2013
