|
FLOWS
|
Friday, 25 September 2013
|
||||||||||||
|
BUY
|
CIMB, DIGI, MRCB
|
||||||||||||
|
SELL
|
GAMUDA, MUDAJYA, PCHEM
|
||||||||||||
|
STOCK ALERT
|
|||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
|||||||||
|
ZHULIAN (5131)
|
25/9/2013
|
RM3.80
|
TRIM
|
RM3.37
|
|||||||||
|
The
share price has jumped c23% over the last 3 weeks. This was fueled by Co’s
promising outlook & prospect as a MLM player, compared to peers Hai-O
& Amway. Zhulian’s dominant position in both the domestic & regional
Bumiputra market & heightened earnings visibility in terms of EPS growth
and a potential net dividend yield of 6% had appealed to investors. Besides
this, there is the belief that Thailand will continue to drive growth as Co
is now amongst the top 3 MLM companies there and is expected to grow at c20%
pa. Around 80% of Zhulian’s products are manufactured in-house, which enables
better cost & supply control, resulting in stronger EBIT margins (average
of 24% in the past 5 years). However, the sharp rise in share price has
brought valuations higher, 11.4x for FY14 ( vs Amway’s 17X & Hai-O
9.8x). Despite the prospects, the low liquidity & free float ( 35%) of
the shares, low entry barrier & MLM regulatory risks may suggest upside
may be limited from here, RSI at 77 - TRIM, buy back at RM3.37 (10x FY14).
(AK)
 |
|||||||||||||
|
MUDAJYA (5085)
|
25/9/2013
|
RM2.66
|
ACCUMULATE
|
RM3.36
|
|||||||||
|
The
share price surged above RM2.80 on news of the Co securing the coal supply
for Phase 1 of its Indian IPP, but has since settled around current level for
the past 2 weeks. Mudajaya remains the dominant player in domestic power
plant construction. Market expects news-flow on power plant awards to pick up
in the next 6 months. Management has guided that group is looking at
cRM500m-1bn worth of new jobs in 2HY13, backed by RM5b worth of tenders (60%
for power plant work). We also anticipate a strong re-rating when the signing
of coal supply for Phase 2 comes about ( expected soon, according to
management ), as past delays in the signing of coal supply have been a major
investor concern & share price overhang. Valuation appears attractive at 7.1x
FY14. Interest in small caps remain strong & Mudajaya offers an
attractive domestic exposure, with numerous near term catalysts –
Accumulate. ( TP RM3.36, 9x FY14).
(AK)
 |
|||||||||||||
|
Calls for SEPT Week 3/ Week 4
|
|||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
|||||||
|
PMETAL (8869)
|
18/9/2013
|
RM2.09
|
ACCUMULATE
|
RM2.87
|
RM2.17
|
+3.8%
|
|||||||
|
CARLSBG (2836)
|
18/9/2013
|
RM12.86
|
TRIM
|
RM11.70
|
RM12.92
|
+0.4%
|
|||||||
|
BURSA (1818)
|
19/9/2013
|
RM7.56
|
BUY
|
RM8.88
|
RM7.50
|
+0.8%
|
|||||||
|
SKPETRO(5218)
|
19/9/2013
|
RM3.67
|
ACCUMULATE
|
RM4.60
|
RM3.76
|
+2.4%
|
|||||||
|
INARI (0166)
|
20/9/2013
|
RM0.90
|
BUY
|
RM1.01
|
RM0.885
|
-1.7%
|
|||||||
|
PANTECH (5125)
|
20/9/2013
|
RM0.99
|
BUY
|
RM1.10
|
RM0.975
|
+1.6%
|
|||||||
|
GAMUDA (5398)
|
23/9/2013
|
RM4.59
|
BUY
|
RM5.20
|
RM4.64
|
+1.0%
|
|||||||
|
UOADEV (5200)
|
23/9/2013
|
RM2.21
|
BUY
|
RM2.80
|
RM2.26
|
+2.2%
|
|||||||
|
BIMB (5258)
|
24/9/2013
|
RM4.71
|
Take Profit
|
RM4.04
|
RM4.64
|
+1.5%
|
|||||||
|
BHIC (8133)
|
24/9/2013
|
RM2.44
|
ACCUMULATE
|
RM2.80
|
RM2.43
|
+0.5%
|
|||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|
