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FLOWS
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Monday, 24 June, 2013
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BUY
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CIMB, DIALOG, GTRONIC
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SELL
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MAS, PBBANK, AXIATA
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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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FAVCO(7229)
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24/6/2013
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RM2.86
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ACCUMULATE
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RM3.40
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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)
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TROP-WA(5401WA)
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24/6/2013
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RM0.865
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Trading BUY
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RM1.50
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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)
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Calls for JUNE Week 2 & 3
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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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GADANG(9261)
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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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RM0.84
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+3.7%
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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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RM3.12
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+1.9%
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SUPERMX(7106)
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18/6/2013
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RM1.91
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BUY on weakness
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RM2.40
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RM1.98
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+3.6%
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MAHSING (8583)
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18/6/2013
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RM2.86
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BUY
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RM3.60
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RM2.98
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+4.2%
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SKPRES(7155)
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19/6/2013
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RM0.315
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BUY
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RM0.37
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RM0.31
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-1.6%
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YTLLAND(2577)
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19/6/2013
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RM1.12
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BUY
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RM1.36
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RM1.08
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-3.6%
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KKB(9466)
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20/6/2013
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RM2.10
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ACCUMULATE
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RM2.80
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RM1.96
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-6.6%
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CANONE(5105)
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20/6/2013
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RM3.44
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ACCUMULATE
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RM5.00
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RM3.34
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-3.0%
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IHH(5225)
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21/6/2013
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RM4.03
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TAKE PROFIT
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-
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RM3.95
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-2.0%
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E&O(3417)
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21/6/2013
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RM1.84
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BUY
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RM2.05
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RM1.83
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-0.6%
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