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FLOWS
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Wednesday, 13 November, 2013
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BUY
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UMW,
IOICORP, DRBHICOM
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SELL
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TENAGA, IGB, BENALEC
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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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E&O(3417)
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13/11/2013
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RM2.01
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Trading BUY
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RM4.20
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The
share price is currently not far off its 4 months low of RM1.90, partly due
to the Budget 2014 measures which dampened the operating environment for
developers. We expect the sector to take 3-6 months to adjust to the
regulatory changes & see this an opportune time to accumulate the shares.
We’re convinced the Co’s share price re-rating cycle is still at an early
stage. Regulatory approval for the commencement of reclamation works at Seri
Tanjung Pinang 2 (STP2) is a key catalyst. Based on latest developments on
the submission of the Detailed Environmental Impact Assessment ( DEIA), the
approval are expected to come in early 2014, while reclamation works is
envisaged to start in 2HCY2014. The estimated GDV of STP2 stands at a massive
RM25-30b. We like E&O for being the best proxy for Penang developers, low
institutional shareholding (c10%), it’s high RNAV ( c RM4.20) & the
potential of its re-rating catalyst STP2 coming about soon; Trading Buy, as
news flow on STP2 should pick up in the coming months ( TP RM 2.52, based on
40% discount to RNAV of RM4.20).
(AK)
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BJFOOD(5196)
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13/11/2013
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RM1.63
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ACCUMULATE
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RM2.07
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Largely trading below the radar
since its listing in March 2011, the group has transformed itself from a one
brand player into a diversified regional player in the F&B arena, driven
by a string of acquisitions in 2012. It’s network currently comprises of a
staggering 274 outlets and 4 core brands ( Starbucks, Kenny Rogers Malaysia
& Indon & Jollibean). Group has demonstrated impressive SSSG ( via
pricing, new products & loyalty programs ), breaking into new markets (
Cambodia, China, Brunei ) and broadening its sales channels ( drive through
& kiosk outlets), all of which contributing to its impressive 3-year
revenue CAGR of 26% and earnings CAGR of 29%. BJFood is an excellent play on
consumption growth given its regional presence and strong franchise value.
Valuation wise, it’s trading at c17x & 14.2x for FY04/14 and FY15. We
think it deserves a higher valuation as it is in its infrastructure building
phase with strong future earnings growth and it’s also viewed as a cheaper
proxy to Starbucks Corp (US) which is trading at a high 38x ; Accumulate ( TP
RM 2.07, based on 18x FY15).
(AK)
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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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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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RM4.86
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+0.8%
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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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RM2.96
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+8.0%
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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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RM5.10
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+1.7%
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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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RM1.09
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+0.0%
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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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RM2.60
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+1.5%
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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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RM6.85
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-0.1%
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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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RM2.65
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0.0%
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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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RM0.875
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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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