Morning Call | 10 October 2013

FLOWS

Thursday, 10 October, 2013

BUY

YTL, MRCB, CMSB

SELL

MAYBANK, UOADEV, AMMB

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

CYPARK (5184)

10/10/2013

RM2.01

ACCUMULATE

RM2.40

CYPARK (RM2.01) – stock continued to consolidate sideways around the RM2.00 level as it builds a solid floor for the stock price. We remain optimistic on Cypark’s longer-term outlook given that the group is the key beneficiary of Malaysia’s government initiative to raise the level of RE in the national grid. Group should see a boost in earnings by year 14/15 as the group expect to see an increase in contributions from its RE concessions. Cypark has secured a 21 year solar PPA (8MW) and a 16 year PPA (2MW) with TNB at its Pajam land fill in Nilai that increased Cypark’s RE portfolio to 33MW solar and 27MW biogas and biomass. Increasing gas prices will also be a boon for RE sales in future. Currently trades at 12x PE only 9x for FY14 and 6x for FY15. MACD still negative but price well supported at this range. Accumulate ahead of the budget 2014 before the end of October. (RL)

GASMSIA (5209)

10/10/2013

RM3.91

Take Profit

RM3.40

Stock  has done very well for this year with ytd performance of 57% vs the KLCI Index’s 4.75%. It is also trading at lofty valuations with PER of 30x & p/bk of 4.98x compared to Asia ex Japan average utility stocks PER of 11x & p/bk of 1.5x. Earnings forecasts were cut by several analysts amid lower gas volume due to a delay in the commissioning of the Melaka regasification plant and a profit margin squeeze from the higher gas prices. We believe it time to take profit at current level as the positives have been reflected in the price. RSI overbought at 72%, MACD turning down. Take profit with a Buy Back at RM3.40 based on 25x. (RL)

Calls for  OCT Week 1/ Week 2

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

MAYBULK (5077)

3/10/2013

RM1.83

SELL into strength

RM1.55 - RM1.65

RM1.80

-1.7%

GADANG (9261)

3/10/2013

RM0.825

BUY on weakness

RM1.30

RM0.81

-1.9%

E&O (3417)

4/10/2013

RM2.01

ACCUMULATE

RM2.30

RM1.97

-2.0%

INARI (0166)

4/10/2013

RM1.11

Take Profit

<RM1.00

RM1.20

+8.1%

CIMB (1023)

7/10/2013

RM7.44

Trading BUY

RM8.40

RM7.40

+0.6%

PENERGY (5133)

7/10/2013

RM2.06

BUY

RM2.50

RM2.08

+0.9%

CMSB (2852)

8/10/2013

RM5.43

Take Profit

RM4.60

RM5.23

-3.7%

KLK (2445)

8/10/2013

RM22.90

Take Profit

RM21.00

RM22.64

-1.1%

MISC (3816)

9/10/2013

RM5.09

TRIM

RM4.80

RM5.11

-0.3%

QL(7084)

9/10/2013

RM3.82

SELL into Strength

RM3.63

RM3.83

+0.2%

 

HOLD
CONT SELL	SELL/ TAKE PROFIT
CONT BUY	STRONG BUY