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FLOWS
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Tuesday, 12 November, 2013
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BUY
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MAYBANK,
AXIATA, BARAKAH
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SELL
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GENTING, DIALOG, TM
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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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BHIC (8133)
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12/11/2013
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RM2.65
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ACCUMULATE
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RM3.20
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Begin accumulation of BHIC as sentiment on
this stock will see a sharp improvement when the Q3 & Q4 results are
announced as they will be a substantial turnaround from last year
losses of RM27m (Q3’12) & RM73m (Q4’12). This is due to the contribution
from higher margin jobs of maintenance, repairs & overhaul of naval
vessels, and the expected recognition of profit from work done for the RM9b
Littoral Combat Ships (LCS) contract. The company has also in 1H13 completed
the legacy contracts secured in the aftermath of the global credit crisis
which are of very low margins & some even had issues of default where
provisions are required. The added catalyst ahead is BHIC is looking to
secure contracts worth >RM1b from the Malaysian Maritime Enforcement
Agency for patrol boats & fast interceptor crafts to boost security off
the shore of Sabah post the Lahad Datu incursion. Valuation is also
attractive at 12.9x & 8.2x for FY13 & FY14 respectively. Accumulate
(PT)
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GHLSYS(0021)
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12/11/2013
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RM0.885
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Take Profit
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-
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Take
profit on GHLSYS as it is heavily overbought with daily RSI of 81% &
weekly RSI of 88%, and a year-to-date gain of 242%. The weekly chart depicts
gains that are not sustainable with its rise over the last 7 weeks
practically in a vertical straight line and the gains were especially pronounced
in the last 2 weeks after the announcement of implementation of GST in April
2015 on hopes of GHLSYS securing GST-related contracts. It is noted that a
top notch listed competitor in this field, MYEG, who is tipped to be a
frontrunner for such contracts in view of their existing e-commerce jobs for
the government, has already corrected >11% after its sharp run post the
Budget announcement. Hence this pull back is likely to happen for GHLSYS.
Incidentally, Morgan Stanley has also lowered their rating on the
internet/e-commerce stocks last night after their sharp gains impacted on
their valuations. GHLSYS valuation is also currently expensive relative to
its historical average with forward FY13 PER of 24.2x versus 5-year average
of 12.8x, and p/bk of 2.88x versus 0.88x. Take profit
(PT)
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Calls for NOV week 1/ Week 2
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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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ARMADA (5210)
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4/11/2013
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RM3.97
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ACCUMULATE
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RM4.50
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RM3.90
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-1.8%
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HARTA (5168)
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4/11/2013
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RM7.23
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TAKE PROFIT
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RM6.50
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RM7.39
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+2.2%
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JTIASA (4383)
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6/11/2013
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RM2.28
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SELL
into Strength
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RM2.07
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RM2.39
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+4.8%
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TUNEINS (5230)
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6/11/2013
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RM1.84
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ACCUMULATE
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RM2.20
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RM1.84
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0.0%
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GAMUDA (5398)
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7/11/2013
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RM4.82
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BUY on weakness
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RM5.30
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RM4.87
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+1.0%
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DIALOG (7277)
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7/11/2013
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RM2.74
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ACCUMULATE
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RM3.30
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RM2.97
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+5.8%
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MISC(3816)
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8/11/2013
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RM5.01
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ACCUMULATE
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RM5.50
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RM5.13
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+2.3%
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AAX(5238)
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8/11/2013
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RM1.09
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ACCUMULATE
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RM1.20
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RM1.10
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+1.0%
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DRBHCOM(1619)
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11/11/2013
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RM2.56
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BUY
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RM2.83
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RM2.61
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+1.9%
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AXIATA(6888)
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11/11/2013
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RM6.86
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SELL
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RM6.40
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RM6.84
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+0.2%
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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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