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FLOWS
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Thursday, 15 August, 2013
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BUY
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CIMB, DIALOG, MRCB
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SELL
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MAS, PBBANK, AXIATA
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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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BUY BACK TP
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PTARAS(9598)
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15/8/2013
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RM6.16
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Trading SELL
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RM5.50
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The share price has moved up c23% over the past 2
weeks, on expectations that Co will be the best proxy to the piling sector in
Malaysia, driven by developments in large scale infrastructure, property and
O&G projects. Being an industry leader with PBT margins in excess of 30%,
OB is expected to pick up strongly from the MYR150m currently to about
MYR300. Demand for piling works is expected to accelerate over the next 6-12
months, with additional jobs coming from Iskandar, RAPID, TRX, WCE and new
property launches. Pintaras’s B/S is strong, with net cash of RM110m or
RM1.38/share as at March 2013. However, valuation is looking stretched after
the price rise. Trading at c9.5x FY06/14, Co is still exposed to the
cyclicality of the construction, property & O&G sectors & influx
of foreign piling contractors to the local market. Share liquidity remains
low despite the one-for-one bonus issue announced recently, RSI at 76. –
Trading Sell, buyback at RM5.50 ( 8.5X FY06/14)
(AK)
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SUPERMX(7106)
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15/8/2013
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RM2.40
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Trading SELL
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RM2.08
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The weakening MYR against the USD recently, the
expectations that margins will improve from 2QFY13 & new capacity from
the 12 replacement lines and 2 new plants over FY13 & FY14 have all
contributed to the strong share price run +18% over the past 2 weeks. A
strong Q2 FY13 results, which we expect margins to improve, will also dispel
skepticism that Supermax is unable to implement cost pass through. Co remains
a beneficiary of a weaker MYR since they do not hedge it’s USD receipts. But
with the share price run, it is now trading at 11.6x FY13, above the 5-year
mean PE of 9x for FY13 earnings. Management has also guided for a higher
effective tax rate, as the group is close to full utilization of its
reinvestment allowances (RA) claims & that MITI has refused RA extension
for the sector. There also remains the fear that over capacity expansions
could lead to price competition & lower margins in 2H13. We reckon the
Supermax is fairly valued now, RSI at 79; Trading Sell, Buyback at RM2.08 (10x
PE FY13).
(AK)
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Calls for AUGUST Week 1/Week 2
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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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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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RM6.68
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+0.1%
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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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RM1.93
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+2.6%
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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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RM3.74
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-2.7%
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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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RM2.51
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+1.2%
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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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RM1.36
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0.0%
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WCT(9679)
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13/8/2013
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RM2.52
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BUY
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RM3.08
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RM2.54
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+0.8%
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CENSOF (5195)
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13/8/2013
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RM0.525
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BUY
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RM0.69
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RM0.55
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+4.7%
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SKPETRO(5218)
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14/8/2013
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RM3.71
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BUY
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-
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RM3.74
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+0.8%
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RHBCAP(1066)
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14/8/2013
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RM8.05
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BUY
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-
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RM8.05
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0.0%
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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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