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FLOWS
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Tuesday, 6 August, 2013
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BUY
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CIMB, KLK, DIGI
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SELL
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DIALOG, MAYBULK, SIME
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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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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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Group’s
outlook remain positive as its trading division may pick up in the near term
due to the bullish local o&g sector recently. Domestic demand for the
company’s pipes, fittings and flow control products has picked up speed again
with the resumption of contracts flow now that the general election is over.
Thus, we expect a strong recovery for trading sales in the coming quarters.
Also, group’s recent quarter saw a boost in its trading sales revenue to due
contributions from its overseas arm UK Nautic Steels which has turned around
since the takeover by Pantech in 2012. Comparing to its mid cap o&g peers
in the sectors, Pantech is only trading at about 10x multiple which is
relatively lower than sector average of 15x, group expected to maintain a
double digit growth rate for the next 3 years. Technical chart shows a strong
bounce after hitting the 68.1% level (RM0.995), MACD turning up and RSI only
38%, forecast yield is about 5% for FY14. BUY with a TP of RM1.40 based on
13x FY13 PE based on 10sens per share.
(RL)
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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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SKPETRO
(RM3.84) – recent weakness in price was the result of the delay from
Petronas’ RAPID in dishing out RM60mil worth of contracts. Nevertheless,
group secured up to 9bil worth of new order with the largest was the 8.6mil
charter for 3 flexible pipelaying vessels from Petrobras, this raises the
order book of the group to 26.5bil for the next few years. While prospect
were dimmed by the delay, we believe that the group’s is still an attractive
growth story offering a 3 year EPS CAGR of 35%. Price had fallen 5% in just 3
days and is currently trading at the major support level. Currently trading
at Accumulate on weakness.
(RL)
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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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GADANG (9261)
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30/7/2013
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RM0.92
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BUY
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RM1.20
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RM0.935
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+1.6%
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PERISAI(0047)
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30/7/2013
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RM1.56
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ACCUMULATE
on weakness
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RM2.00
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RM1.50
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-3.9%
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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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RM1.59
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+1.9%
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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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RM1.33
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-2.3%
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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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RM3.65
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+11.2%
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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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RM2.74
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+1.4%
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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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RM5.20
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-3.2%
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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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RM6.65
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-0.3%
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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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RM1.91
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+1.5%
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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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