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FLOWS
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Wednesday, 12 August, 2013
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BUY
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MAYBANK, MAGNUM, MISC
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SELL
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GENTING, IJM, KNM
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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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MUHIBAH(5703)
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12/8/2013
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RM2.48
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ACCUMULATE
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-
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Stock has pulled back 14% from its high of
RM2.72 to RM2.34 before consolidating in the RM2.40 -50 range. The current
weakness in the market is an opportunity to accumulate Muhibah as its growth
drivers in the oil & gas sector continued to gain further traction with
its recent award of licence by Petronas as an approved supplier of major
onshore fabrication & construction works. This is expected to lead to
contracts win from Petronas and the other oil major operators in Malaysia on
its own, without having to tie-up with other O&G players and having to
share the profits. With its good track record with Petronas, Muhibah is
tipped to be one of the front runners for the RM60b RAPID project Pengerang
project. In addition, Muhibah & its JV partner, which has also been
shortlisted as a concessionaire for the Mandalay International Airport in
Myanmar, is tipped to be the likely winner in view of the expertise &
track record of its JV partner. Valuation wise, Muhibah trades at an
attractive PER of 11.7x & 10.4x for FY13 & FY14 respectively – the
lower end of small & mid-cap O&G players PER band in Malaysia.
Accumulate
(PT/LJN)
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SUNREIT(5176)
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12/8/2013
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RM1.36
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ACCUMULATE
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-
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Recent selling by the US capital Group has
drove the price & valuation down to compelling levels vis-a-vis its
peers. SunReit offers a distribution yield of 6.02% & 6.92% for the next
2 FYs which is attractive compared to CMMT, Pavreit & IGBReit which have
distribution yields ranging from 5.4% to 6.4%; and MGS 10yr bond yield of
3.9%. Management has also committed to continue with their 100% distribution
policy for FY14. Since IPO, SunReit has registered a commendable 3-yr
distribution per unit CAGR of 12.3%. For future growth, the 3 properties
which are undergoing refurbishments, Sunway Putra Place, Sunway Putra Hotel
& Sunway Putera Tower, will see a significant jump in earnings when
completed in FY15. In addition, the main contributor to revenue &
bottom-line, Sunway Pyramid Shopping Mall, will see a major rental renewal
exercise in FY14, and the asset enhancement exercise under Oasis Boulevard Phase
5 of the same mall is expected to be completed by end-2013. Technically,
Sunreit is oversold with an RSI of 24% and has also achieved its minimum 38%
retracement of its bull run from its listing day price of RM0.745 to its high
of RM1.70. In percentage terms, it has also retraced more than its peers.
Accumulate
(PT/LJN)
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Calls for JULY Week 4 /
AUGUST Week 1
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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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SENDAI (5205)
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31/7/2013
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RM1.56
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Trading BUY
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RM1.75
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RM1.63
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+4.4%
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TEBRAU (1589)
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31/7/2013
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RM1.36
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Trading BUY
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RM1.70
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RM1.37
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+0.7%
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KIMLUN (5171)
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1/8/2013
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RM2.00
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ACCUMULATE
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RM2.60
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RM2.03
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+1.5%
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DELEUM (5132)
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1/8/2013
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RM3.28
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BUY
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RM3.90
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RM3.73
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+13.7%
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UEMS (5148)
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2/8/2013
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RM2.70
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BUY
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RM3.15
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RM2.76
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+2.2%
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MISC(3816)
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2/8/2013
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RM5.37
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BUY
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RM5.80
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RM5.14
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-4.3%
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KPJ(5878)
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5/8/2013
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RM6.67
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ACCUMULATE
on weakness
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RM7.25
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RM6.75
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-1.1%
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MYEG(0138)
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5/8/2013
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RM1.88
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ACCUMULATE
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RM2.20
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RM2.01
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+6.9%
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PANTECH(5125)
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6/8/2013
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RM1.04
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BUY
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RM1.40
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RM1.08
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+3.8%
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SKPETRO(5218)
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6/8/2013
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RM3.84
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ACCUMULATE
on weakness
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RM4.60
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RM3.80
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+1.1%
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We’ve added
an extra feature (first column from right) to indicate our recommendation for
our call.
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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