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FLOWS
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Monday, 22 July, 2013
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BUY
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UMW, IOICORP, AAX
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SELL
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TENAGA, MAXIS, CIMB
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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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THHEAVY(7206)
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22/7/2013
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RM0.945
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Trading SELL
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RM0.85
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The
share price has surged c35% over the past month, interest fuelled by several
catalysts. These include it’s imminent entry into the FPSO market via its 85%
completed Deep Producer 1 (DP1), expansion of its 57 acre fabrication yard in
Pulau Indah , it’s 30% stake in derrick pipe lay barge DB30 & strategic
partnership with McDermott International for fabrication jobs. The group, one
of 7 Petronas’s licensed O&G fabricators has a rather modest O/B of
RM220m & T/B of RM2b. The price run up has caused valuation to spike,
with PER for FY12/2013 PE at 35x, but expected to fall to 15x & 12x for
FY14 & 15. Although PEs for FY14 compares favorably to mid to large cap
peers of average 18x, execution risks still prevails on potential earnings
growth going forward. RSI at 77 ; Trading Sell ( Buy back at RM0.85, FY14 PE
13x)
(AK)
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SAM(9822)
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22/7/2013
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RM2.45
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BUY on weakness
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RM3.00
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The acquisition of Avitron,
the aero engine casing manufacturing division of SAM Singapore in Sept
2012 has made the Group more appealing. Earning is expected to improve
strongly, to account for the earning accretion from this new division. Group
has repositioned itself from its traditional semiconductor player to a
diversified engineering group. The new earning stream from the aerospace
division should be able to cushion any shortfall in semiconductor earnings
& help stabilize earnings during the technology downcycle, as aerospace
business is much less volatile. The division has an OB of RM1.2b wich should
last until 2018. Outlook promising, driven by the robust aerospace industry as
well as possibility of more synesgistic business acquisitions ( potentially
from SAM Singapore) as group is eyeing to expand further in this segment (
with targeted 2/3 earnings contribution , as opposed to ½ currently). However, the share price
has moved up c20% over the past week. Trading at PER of c12x FY03/14 ( vs
industry’s 12-16x); BOW.
(AK)
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Calls for JULY week 2 / week
3
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STOCK
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Initiation Dates
|
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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WCT (9679)
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15/7/2013
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RM2.49
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ACCUMULATE
|
RM2.98
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RM2.44
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-2.1%
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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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RM0.755
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+7.0%
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JOHOTIN(7167)
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16/7/2013
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RM1.97
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BUY
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RM2.60
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RM1.92
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-2.6%
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GENM(4715)
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16/7/2013
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RM3.99
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Take profit
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RM3.68
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RM3.86
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-3.3%
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PRESBHD (5204)
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17/7/2013
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RM2.11
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Trading BUY
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RM2.80
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RM2.14
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+1.4%
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HSL(6238)
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17/7/2013
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RM2.02
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BUY
|
RM2.60
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RM2.08
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+2.9%
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WASEONG (5142)
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18/7/2013
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RM1.96
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BUY
|
RM2.33
|
RM1.96
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0.0%
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MUDAJYA (5085)
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18/7/2013
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RM2.70
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BUY
|
RM3.44
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RM2.69
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-0.4%
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MAYBULK (5077)
|
19/7/2013
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RM1.85
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BUY
|
RM2.30
|
RM1.81
|
-2.1%
|
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DAYA(0091)
|
19/7/2013
|
RM0.255
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BUY
|
RM0.295
|
RM0.265
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+3.9%
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Monday, July 22, 2013
Morning Call | 22 July 2013
