Morning Call | 3 July 2013

FLOWS

Wednesday, 3 July, 2013

BUY

TENAGA, AXIATA

SELL

CIMB, MAYBANK, UEMS, GENTING

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

YTL(4677)

3/7/2013

RM1.64

ACCUMULATE

RM2.00

stk has retraced in line with the mkt as it falls back to its 50D SMA support lvl of RM1.65 after touching a brief high of RM1.80. RSI at 42, MACD has turned oversold since mid-May on lack of catalyst. Defensive stock with strong earnings visibility from its concessions protected by its co share buybacks with outstanding issues: privatisation of subsidiaries-imminently YTLPower, infra contract for KL-Spore high speed rail proj or any M&A as co eyes distressed European assets. Co is armed with warchest of RM4bn, targeting to maintain div yield of 5%. Accumulate. (LJN)

INTEGRAX (9555)

3/7/2013

RM1.64

BUY

RM2.00

stk has recently broken out with MACD just cutting upwards on possible new developments. Co owns and operates Lumut Port and Lekir Bulk Terminal (LBT). Largest s/h TNB is currently in midst of tendering for 1000MW coal fired power plant in Manjung (bidding 22.78c/kWh v competitor IMDB/Mitsui JV’s 24.86c/kWh). If TNB is successful it will benefit Integrax as Lumut Port will get to carry additional coal cargo. Also, TNB is in midst of building a an extension at LBT called Manjung 4, a 1010MW coal fired facility which will boost LBT’s coal throughput by 3m tones to 9m tones once it is operational in 2015. Additionally, talks with Vale has always been ongoing and may be closed to being finalized for Vale to use Integrax as a transshipment hub. Trades at P:B 0.8x, PER 11x- buy (LJN)

Calls for JUNE Week 4 - JULY week 1

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

GAMUDA(5398)

26/6/2013

RM4.45

ACCUMULATE

RM5.20

RM4.83

+8.5%

SKPETRO(5218)

26/6/2013

RM3.86

ACCUMULATE

RM4.50

RM4.05

+4.9%

UOADEV(5200)

27/6/2013

RM2.23

BUY

RM2.70

RM2.41

+8.0%

LIONIND(4235)

27/6/2013

RM0.975

BUY

RM1.40

RM0.995

+2.0%

UEMS(5148)

28/6/2013

RM3.08

Trading SELL

BUYBACK RM < 2.60

RM3.03 Ex

-1.6%

SILKHLD(5078)

28/6/2013

RM0.395

BUY

RM0.50

RM0.38

-3.7%

KIMLUN(5171)

1/7/2013

RM2.06

ACCUMULATE

RM2.61

RM2.00

-3.0%

DAYA(0091)

1/7/2013

RM0.24

Trading BUY

RM0.28

RM0.235

-2.1%

GTRONIC (7022)

2/7/2013

RM2.18

Strong BUY

RM2.97

RM2.25

+3.2%

IGB (1597)

2/7/2013

RM2.54

Trading BUY

RM3.00

RM2.55

+0.3%