|
FLOWS
|
Thursday, 31 October 2013
|
|||||||||||||
|
BUY
|
PERDANA, ARMADA
|
|||||||||||||
|
SELL
|
CIMB, MAYBANK
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
GTRONIC (7022)
|
31/10/2013
|
RM3.00
|
ACCUMULATE
|
RM3.50
|
||||||||||
|
Group has already lined up their next
upcoming high margin product (the optical interface sensors & multiport
that are used in smartphones, tablets and gaming applications) that will be
introduced in 4Q 2013/1Q 2014. Group should see a revenue contributions from
the new addition by 2015. We continue to like the group for its growth story
as well as its net profit margin that grew from 10% to 14% in FY12 and is
expected to grow to 17% in the next 2-3 years from its new product. In
addition to the group’s strong balance sheet (net cash of RM0.52sens/share),
group also expects a CAGR of 25% growth in net profit averagely for the next
3 years. Valuations seem attractive a 13.3x for FY14, and only 11x for FY15,
current dividend yield is still attractive at current price at 5.8% for the
last 12 months and is expected to increase to 7.1% in fy15 when the earnings
from their turnkey product kicks in. The share price has fallen from an
all-time high of RM3.17 (ex div of 9 sens) to the RM3.00 level and we think
this is an opportunity to accumulate on any weakness. We rate it a defensive
buy due to its visible earnings stream and attractive yield of 5.7%.
(RL)
|
||||||||||||||
|
HUAYANG (5062)
|
31/10/2013
|
RM2.11
|
BUY
|
RM2.62
|
||||||||||
|
We continue to like Huayang
for being one of the few property developers to focus on the affordable
housing market which will enjoy resilient demand for the next few years
especially ahead of the governments initiative to encourage more mid low
developements (e.g Pr1ma a mid low housing dev project). Also, Huayang should
not be impacted by the Budget 2014 property cooling measures as they do not
have any initial exposure to the DIBS. Despite the weaker first half results,
the group is expecting to reveal better numbers as the billing was heavily
loaded towards the 2h FY2014 backed by unbilled sales of RM559mil. Moving forward,
we think that the continue trend upwards couple with the growing need for
mass housing will benefit the group. Valuation of the group is attractive
with only 6x** multiple for FY14 and c.5x** for FY15. Pays div of 4.2% at
this price and expect an increase to 6% by 2015 due to more launches in the
Puchong region. BUY with a TP of RM2.62 based on 10% to our RNAV of RM2.91.
(RL)
|
||||||||||||||
|
Calls for OCT Week 3/ Week 4
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
ENGTEX(5056)
|
24/10/2013
|
RM1.60
|
BUY on weakness
|
RM2.00
|
RM1.74
|
+8.7%
|
||||||||
|
FAVCO (7229)
|
24/10/2013
|
RM2.79
|
ACCUMULATE
|
RM3.60
|
RM3.04
|
+8.9%
|
||||||||
|
BRAHIMS (9474)
|
25/10/2013
|
RM1.50
|
BUY
|
RM2.04
|
RM1.49
|
-0.6%
|
||||||||
|
GLOMAC(5020)
|
25/10/2013
|
RM1.19
|
Trading BUY
|
RM1.45
|
RM1.13
|
-5.1%
|
||||||||
|
KEURO(3565)
|
28/10/2013
|
RM1.26
|
ACCUMULATE
|
RM1.58
|
RM1.24
|
-1.6%
|
||||||||
|
CARLSBG(2836)
|
28/10/2013
|
RM12.46
|
Trading BUY
|
RM15.00
|
RM12.90
|
+3.5%
|
||||||||
|
MAGNUM (3859)
|
29/10/2013
|
RM3.31
|
Trading BUY
|
RM3.60
|
RM3.31
|
0.0%
|
||||||||
|
KPJ (5878)
|
29/10/2013
|
RM6.15
|
ACCUMULATE
|
RM6.80
|
RM6.13
|
-0.4%
|
||||||||
|
IJM (3336)
|
30/10/2013
|
RM5.84
|
ACCUMULATE
|
RM6.70
|
RM5.83
|
-0.2%
|
||||||||
|
UOADEV (5200)
|
30/10/2013
|
RM2.22
|
BUY
|
RM2.68
|
RM2.18
|
-1.9%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|
