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FLOWS
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Thursday, 14 November, 2013
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BUY
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CIMB,
IOIC, ALAM
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SELL
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DIALOG, GENM, SIME
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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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NAIM (5073)
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14/11/2013
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RM3.56
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ACCUMULATE
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RM5.12
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Besides construction projects under SCORE,
group has also taken up constructing its Bandar Baru Permyjaya (strategically
located near Miri Town) which has outstanding GDV of more than RM3.0bil that
will drive earnings for the next 3-5 years. We continue to like Naim for its
ability to sustain its higher construction margins due to its oligopoly state
among the other smaller developers in Sarawak; as well as its direct exposure
in the O&G sector via 33.7% stake in Dayang. Stock is currently trading
at attractive multiple of 6.7x for FY14 and 6.49x for FY15. Share price
slipped 8.2% due to the weaker overall construction sector to current levels
(50% retracement) from its recent high of RM3.92 a fortnight ago; while
Dayang’s (RM5.30) share price remained steady thruout. RSI is currently
oversold at only 36%. We believe that the widening divergence between NAIM
and DAYANG’s share price is unjustifiable and should correct upwards. We feel
that this is an opportunity to accumulate on current weakness with a TP of
RM5.12 based on 9x FY14 EPS of 0.53 sens.
(RL)
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ALAM (5115)
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14/11/2013
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RM1.40
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Technical BUY
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RM1.68
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Upon winning yet another 38mil vessel
chartering contract just 2 weeks back and also the having secured RM1.3b
worth of contracts for 2013 (vs 528.7mil in 2012), Alam has outperformed it’s
historical performance as it is currently running at as much as 90%
utilization for its fleet of work boats and work barges. Looking ahead, group
is looking to secure more OSV charter contracts as 6-7 of them are expiring
soon. Moreover, Alam is looking to either secure a portion of Pan Malaysia’s
T&I (transportation and installation umbrella project worth 3bil-5bil) or
atleast work on a sub contract work for main incumbents such as SKPETRO.
Share price fell 13% in the last 3 days itself and is currently trading at the
neckline support of RM1.40 and RSI is at an oversold level of only 33%.
Current valuation is attractive as it trades at only 10.8x PE for FY14 and
9.8x for FY15 which is below the sector average of 17x. We advocate a
Technical Buy with a TP of RM1.60-RM1.68 in the short term.
(RL)
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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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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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RM2.91
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+6.2%
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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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RM5.05
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+0.7%
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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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RM1.07
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-1.9%
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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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RM2.53
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-1.2%
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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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RM6.83
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-0.5%
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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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RM2.72
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+2.6%
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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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RM0.82
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+7.4%
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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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RM1.98
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-1.5%
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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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RM1.64
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+0.6%
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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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