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FLOWS
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Monday, 15 July, 2013
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BUY
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TENAGA, GAMUDA,
SKPETRO
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SELL
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CIMB, ASTRO, HLBANK
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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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WCT (9679)
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15/7/2013
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RM2.49
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ACCUMULATE
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RM2.98
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The
share price of WCT added only 6% YTD as compared with the sector’s rise of
21% over the same period. This laggard largely due to the series of
unfortunate events from the Middle East recently and also the unresolved
contract dispute on Nad Al Sheba Racecourse project. However, from hereon, we
expect positive news flow & job visibility to pick up in 2HY2013, driven
by RM1-1.5b in targeted new domestic jobs and another potential RM1b
infrastructure job in Qatar. Management has guided that construction pretax
margin of 10-12% is sustainable over the coming quarters. 2 key medium term
projects that could be out soon & in the advanced stages of tender
includes the RM1b earthworks package for the RRI Land and a RM800m hospital
in Sabah. Trading at PE 11.7X FY14, an attractive laggard play – Accumulate.
(TP RM2.98 based on PE 14x FY14).
(AK)
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JCY(5161)
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15/7/2013
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RM0.705
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Trading SELL
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RM0.53
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The share price has moved up 40% over the past 2
months. This is despite the group reporting a 2QFY13 net loss of RM20.8m,
widening its 1HFY13 net losses to RM46.5m. This was mainly attributable to
reduction in volume shipped, moderating ASP, tighter quality requirements
from customers & the implementation of minimum wage policy earlier in the
year. The lacklustre PC demand amid global uncertainties & customer’s
preference towards smart gadgets could continue to suppress revenue growth.
Note that Western Digital & Seagate have guided for global HDD shipments
to be flat in the near term. Only bright spot is the enterprise segment,
which grew strongly due to affordability &demand for bulk data storage
devices. We see little upside catalyst for JCY, thus the share price run up
provides a good opportunity to trim; Trading Sell. (Possible buy back at
RM0.53, 1x Bk/sh).
(AK)
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Calls for JULY week 2 / week
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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PADINI(7052)
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8/7/2013
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RM1.89
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ACCUMULATE
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RM2.20
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RM1.89
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0.0%
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IJMLAND(5215)
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8/7/2013
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RM2.85
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ACCUMULATE
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RM3.30
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RM2.87
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+0.7%
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FITTERS (9318)
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9/7/2013
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RM0.745
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ACCUMULATE
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RM1.15
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RM0.735
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-1.4%
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OLDTOWN (5201)
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9/7/2013
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RM2.75
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BUY on weakness
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RM3.40
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RM2.79
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+1.4%
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POS(4634)
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10/7/2013
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RM4.80
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ACCUMULATE
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RM5.50
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RM4.78
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+0.5%
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TMCLIFE(0101)
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10/7/2013
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RM0.395
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BUY
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RM0.50
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RM0.390
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-1.2%
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SUPERMX(7106)
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11/7/2013
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RM2.00
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SWITCH
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RM2.32
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RM2.01
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+0.5%
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CRESBLD(8591)
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11/7/2013
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RM1.23
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BUY
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RM1.44
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RM1.31
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+6.5%
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MTDACPI(5924)
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12/7/2013
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RM0.555
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BUY
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RM0.76
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RM0.575
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+3.6%
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GENTING (3182)
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12/7/2013
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RM9.98
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BUY
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RM10.58
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RM10.06
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+0.8%
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Monday, July 15, 2013
Morning Call | 15 July 2013
