|
FLOWS
|
Wednesday, 30 October, 2013
|
|||||||||||||
|
BUY
|
PERISAI, CIMB
|
|||||||||||||
|
SELL
|
SKPETRO, MAXIS, ARMADA
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
IJM (3336)
|
30/10/2013
|
RM5.84
|
ACCUMULATE
|
RM6.70
|
||||||||||
|
Group is seen as a major beneficiary from the recently announced Budget
2014, as it look set to leverage on the rollout of 2 major projects
highlighted, namely the West Coast Expressway (WCE) and the Kuantan Port
expansion. These projects may signal a turnaround of IJM’s construction
division with the normalization of profit margins. The 2 projects could more
than double OB to RM8b. The WCE is expected to achieve financial close within
the next 2 quarters. IJM could secure c70% of capex works. The emergence of
China’s Guangxi Beibu Group as a 40% shareholder of Kuantan Port for RM334m
should also prove positive for IJM’s planned RM3b investment at the port.
From here, IJM & Guangxi Beibu may move to formalize a JV pact to develop
c700 acres of land located north of Kuantan Port. The strategic network of
Guangxi Beibu is also understood to be seeking investors for a steel mill,
aluminium processing plant & edible oil processing plant in Kuantan. WCE
& Phase 1 of Kuantan Port will provide group with close to RM5b worth of
job opportunities. IJM’s share price has consolidated at current level for
the past month, multiples attractive at 15.4x & 13x for FY03/14 & 15
respectively, P/Bk of 1.4x. Also. following the sale of IJM shares by Zelan
over the last 6 months ( 38.4m collectively), the overhang has reduced significantly
( balance of 18.3m shares by our estimate) - Accumulate, as it remains
a blue chip laggard which is likely to have more positive news flow in the
coming months. ( TP RM 6.70 based on 15x FY03/15 )
(AK)
 |
||||||||||||||
|
UOADEV (5200)
|
30/10/2013
|
RM2.22
|
BUY
|
RM2.68
|
||||||||||
|
Group’s share price has been fairly depressed in
the 3 months leading up to the Budget 2014. This is despite the group’s
commendable 1H13 performance, which came in within expectation. New property
sales was strong at RM1.34b, driven by its on-going projects (incl Horizon
office blocks, Binjai 8, Desa Green ). The recently announced measures in
Budget 2014 to curb speculation in the property sector ( incl tweaking of
RPGT rates, minimum ceiling prices of foreign property purchases, removal of
DIBS ) are far more benign compared to what the market had earlier
anticipated. We expect sentiments on property stocks to improve as key policy
overhangs have now been removed. UOA would be an excellent proxy for a sector
rebound, given it’s attractive valuation of 7.5x FY14 PER, high
dividend yield of over 6% ( more attractive that MReits average of 5.5%),
strong net cash position and strong branding & track record. Strong sales
should continue to provide re-rating catalysts. BUY ( TP RM 2.68, based on 9x
FY14).
(AK)
 |
||||||||||||||
|
Calls for OCT Week 3/ Week 4
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
WEIDA (7111)
|
22/10/2013
|
RM1.74
|
BUY
|
RM2.45
|
RM1.87
|
+2.2%
|
||||||||
|
WCT(9679)
|
22/10/2013
|
RM2.45
|
BUY
|
RM3.08
|
RM2.45
|
0.0%
|
||||||||
|
MAXIS (6012)
|
23/10/2013
|
RM7.21
|
TAKE PROFIT
|
RM6.70
|
RM7.20
|
-0.1%
|
||||||||
|
KULIM (2003)
|
23/10/2013
|
RM3.27
|
ACCUMULATE
|
RM3.80
|
RM3.38
|
+3.3%
|
||||||||
|
ENGTEX(5056)
|
24/10/2013
|
RM1.60
|
BUY on weakness
|
RM2.00
|
RM1.71
|
+6.8%
|
||||||||
|
FAVCO (7229)
|
24/10/2013
|
RM2.79
|
ACCUMULATE
|
RM3.60
|
RM2.86
|
+2.5%
|
||||||||
|
BRAHIMS (9474)
|
25/10/2013
|
RM1.50
|
BUY
|
RM2.04
|
RM1.50
|
0.0%
|
||||||||
|
GLOMAC(5020)
|
25/10/2013
|
RM1.19
|
Trading BUY
|
RM1.45
|
RM1.14
|
-4.3%
|
||||||||
|
KEURO(3565)
|
28/10/2013
|
RM1.26
|
ACCUMULATE
|
RM1.58
|
RM1.27
|
+0.7%
|
||||||||
|
CARLSBG(2836)
|
28/10/2013
|
RM12.46
|
Trading BUY
|
RM15.00
|
RM12.48
|
+0.1%
|
||||||||
|
MAGNUM (3859)
|
29/10/2013
|
RM3.31
|
Trading BUY
|
RM3.60
|
RM3.29
|
-0.7%
|
||||||||
|
KPJ (5878)
|
29/10/2013
|
RM6.15
|
ACCUMULATE
|
RM6.80
|
RM6.12
|
-0.5%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|