Morning Call | 24 July 2013

FLOWS

Wednesday, 24 July, 2013

BUY

MAYBANK,CIMB, AMBANK

SELL

DIALOG, SKPETRO, TENAGA

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

PUNCAK (6807)

24/7/2013

RM2.48

BUY on weakness

RM3.50

stk has retraced 17% from its peak of RM3 and is now trading in an upward trend channel with a higher high and higher low. Recent breakout following Sngor Govt’s offer for its water assets. Puncak has a SOP value of 3.64, with 3/4 of the value coming from the secured water treatment business under Puncak Niaga Sdn Bhd with business of water distribution under Syabas contributes to 25% of the SOP. Major rerating will still hinge on resolving the valuation of Selangor State water assets. Puncak is also a play in marginal oilfields through its subsidiary, Puncak Oil & Gas, which is involved in offshore pipe laying and also owns vessel for this business which recently secured RM187m integrated transport and installation proj for North Malay Basin from HESS. Buy as stk is well supported by its deep value assets and o&g potential.  (LJN)

DRBHCOM (1619)

24/7/2013

RM2.70

BUY

RM3.30

stk has been on consolidation mode after peaking at RM2.96 with MACD flattening out and RSI 48. This gives good opportunity to accum this undervalued stk as it trades at mere P:B 0.7x, PER 9x despite good growth potential from its revamped auto division: Proton and VW, recently reinforced defence division with acquisition of CTRM and property segment with its RM13.3bn GDV projs (large development landbanks in Iskandar & Glenmarie). Buy (LJN)

Calls for JULY week 3 / week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

PRESBHD (5204)

17/7/2013

RM2.11

Trading BUY

RM2.80

RM2.14

+1.4%

HSL(6238)

17/7/2013

RM2.02

BUY

RM2.60

RM2.07

+2.4%

WASEONG (5142)

18/7/2013

RM1.96

BUY

RM2.33

RM1.95

-0.5%

MUDAJYA (5085)

18/7/2013

RM2.70

BUY

RM3.44

RM2.66

-1.5%

MAYBULK (5077)

19/7/2013

RM1.85

BUY

RM2.30

RM1.83

-1.1%

DAYA(0091)

19/7/2013

RM0.255

BUY

RM0.295

RM0.265

+3.8%

THHEAVY(7206)

22/7/2013

RM0.945

Trading SELL

RM0.85

RM0.89

-5.9%

SAM(9822)

22/7/2013

RM2.45

BUY on weakness

RM3.00

RM2.69

+9.7%

BRAHIMS (9474)

23/7/2013

RM1.00

Trading BUY

RM1.20

RM1.11

+11.0%

WTK(4243)

23/7/2013

RM1.24

BUY on weakness

RM1.55

RM1.26

+1.26%