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FLOWS
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Tuesday, 22 October, 2013
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BUY
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AMBANK, CIMB, MRCB
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SELL
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IOICORP, MAXIS, HUAYANG
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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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WEIDA (7111)
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22/10/2013
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RM1.74
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BUY
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RM2.45
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Company core business is in the
production of 1) polyethylene engineering (PE) products, 2) building of
telecommunication towers 3) Water, wastewater and other infrastructure and
recently added 4) property development. WEIDA has seen revenue grew at a CAGR
of 8-9% over past 4 years generates 51% of its revenue from PE products such
as storage tanks, road barriers and flexible PE Pipes. These are commonly
used products with higher demand from recent construction jobs such as MRT,
LRT as well as governments commitment to develop Sarawak state. Being based
in Kuching, WEIDA has stronghold in the development of Sabah and Sarawak
rural utilities infrastructures such as rural water supply through water
pipes, storage tanks, treatment plants as well as Telco towers. Govt’s push
to develop these states bodes well for continued demand. Having sold its
plantation land in early 2013, company now sits on a net cash of RM0.65 with
2 JV signed to venture into property development with initial projects in Ara
Damansara (AD) and Mont Kiara. Urbana in AD with GDV around RM250mil was launched
recently with a 90% takeup rate. These 2 projects has estimated GDV of around
RM600mil and expected to contribute around RM60mil over next 3-4years. Based
on SOP valuation company is potentially worth RM3.50 assuming net profit of
RM32mil for its core business while adding cash (RM86mil) and property
profits (RM60mil). Based on RM32mil profit Jan FY14 PER is 7.25x. Buy with
TP: RM2.45 (30% discount to SOP, 10xPE)
(TYK)
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WCT(9679)
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22/10/2013
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RM2.45
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BUY
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RM3.08
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Share price has been consolidating
since June around RM2.50 with negative property sentiment weighing on the
company ahead of budget that is due this Friday. We believe there could be
catalyst ahead from less stringent property tightening, opening of KLIA2 in
02 May 2014, and potential jobs by year end. Stocks related to KLIA2 has been
on the uptrend since Oct (Airport +13%, Airasia +13%, Brahim+7%) and this too
will likely benefit WCT which operates the mall in KLIA2. Potential job each
worth RM1bn could come from ME, earthworks package for the RRI Land, RM800m
hospital in Sabah. Property launches in 2013 will surpass RM1bn this year.
Orderbook stands at RM3bn and trades at 11.6xFY14 PE. Buy with TP: RM3. 08
(14.5xFYPE)
(TYK)
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Calls for OCT Week 2/ Week 3
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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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DELEUM(5132)
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14/10/2013
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RM4.17
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Take Profit
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RM3.50
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RM4.03
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-3.4%
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SUNWAY (5211)
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14/10/2013
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RM2.90
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BUY
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RM3.40
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RM2.94
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+1.3%
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YTL (4677)
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16/10/2013
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RM1.52
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ACCUMULATE
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RM1.80
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RM1.61
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+5.9%
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SCOMIES(7045)
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16/10/2013
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RM0.67
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ACCUMULATE
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RM0.80
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RM0.725
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+8.2%
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MALTON (6181)
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17/10/2013
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RM0.97
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Trading BUY
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RM1.20
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RM0.995
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+2.5%
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SENDAI (5205)
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17/10/2013
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RM1.42
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ACCUMULATE
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RM1.80
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RM1.47
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+3.5%
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NAIM (5073)
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18/10/2013
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RM3.75
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ACCUMULATE
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RM5.12
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RM3.78
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+0.8%
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OLDTOWN (5201)
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18/10/2013
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RM2.48
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Trading BUY
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RM2.88
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RM2.54
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+2.4%
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UEMS (5148)
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21/10/2013
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RM2.51
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ACCUMULATE
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RM3.22
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RM2.59
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+3.1%
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MRCB (1651)
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21/10/2013
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RM1.46
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ACCUMULATE
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RM1.70
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RM1.48
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+1.3%
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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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