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FLOWS
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Wednesday, 2 October, 2013
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BUY
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AMMB, CIMB, MPHBC
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SELL
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IOICORP, MAXIS, GAMUDA
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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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LBS (5789)
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2/10/2013
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RM1.77
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BUY on weakness
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RM2.20
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The
share has outperformed the market over the past 2 months, surging c44% before
settling at current level ( still 30% higher). This was largely on the back
of Co’s part disposal of its Zhuhai land for HKD1.65b (RM680m), which
arguably will put its financial position on a firmer footing. And together with
the improving visibility of its Malysian property business & the
likelihood of LBS announcing a special dividend & formalizing a dividend
policy, has sparked buying interest in the stock. Although valuation is not
cheap now based on its existing earning stream ( 14.5x FY13 EPS ) compared to
other small cap property stock, it’s still trading at about 45% discount to
RNAV of RM3.40. The anticipated dividend policy is expected to be sustainable
over the next 4 years (as it receives the remaining proceeds from sale of
Zhuhai land). LBS’s long term prospect in Malaysia is underpinned by its
remaining sizeable GDV of RM15b, and given its improved B/S, more land-bank
acquisitions are also on the card. We believe the discount to RNAV should
narrow from positive news flow on formalization of dividend policy,
declaration of special dividend and more land-bank acquisitions – BOW. (TP
RM2.20, 35% discount to RNAV).
(AK)
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PERISAI (0047)
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2/10/2013
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RM2.54
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ACCUMULATE
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RM1.66
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Share price has eased over the past 6 weeks, this
we believe was largely due to the company not being able to renew charter
contracts for the Rubicone MOPU as well as the Enterprise 3 (E3) barge. With
these immediate term uncertainties on contract renewal, short term sentiment
can be anticipated to be subdued. Management has guided that it hopes to
secure a charter within a period of 6 months. However, we believe the
negative news has been reflected in the share price. Investors should
accumulate on weakness, as negative non-renewal news is already out &
we’re positive on Perisai’s expansion into jack-up rigs and the FPSO markets,
as they will provide strong recurring income. Co is set to receive 2 jack-up
rigs ( in mid-14 & 15) & its long awaited asset swap ( a stake in E3
for a stake in Ezra’a FPSO ) was completed in August 13. This will minimise
the impact of the E3 being idle. Currently trading at PE of 16x & 11.7x
for FY13/14 , RSI @ 44 – Accumulate ( TP RM1.66 16x FY14 EPS)
(AK)
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Calls for SEPT Week 4/ OCT 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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ZHULIAN (5131)
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25/9/2013
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RM3.80
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TRIM
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RM3.37
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RM3.75
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-1.4%
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MUDAJYA (5085)
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25/9/2013
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RM2.66
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ACCUMULATE
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RM3.36
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RM2.72
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+2.2%
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GENTING (3182)
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26/9/2013
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RM10.42
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SELL
into Strength
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RM9.70
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RM10.40
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-0.2%
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TSH (9059)
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26/9/2013
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RM2.40
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BUY
on Weakness
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RM2.98
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RM2.41
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+0.4%
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YINSON (7293)
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27/9/2013
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RM4.86
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BUY
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RM5.80
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RM4.82
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-0.9%
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NCB (5509)
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27/9/2013
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RM3.98
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Trading BUY
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RM4.40
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RM3.93
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-1.3%
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COASTAL (5071)
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30/9/2013
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RM2.91
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BUY
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RM3.43
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RM2.91
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0.0%
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ALAM (5115)
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30/9/2013
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RM1.45
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BUY
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RM1.80
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RM1.44
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-0.7%
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BAT (4162)
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1/10/2013
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RM64.20
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Take Profit
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RM59.70
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RM64.20
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0.0%
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DIALOG (7277)
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1/10/2013
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RM2.54
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ACCUMULATE
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RM2.90
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RM2.60
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+2.3%
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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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