|
FLOWS
|
Wednesday, 20 November, 2013
|
|||||||||||||
|
BUY
|
AIRASIA,
ALAM
|
|||||||||||||
|
SELL
|
MISC, MAYBANK,
SKPETRO
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
MATRIX (5236)
|
20/11/2013
|
RM3.24
|
Trading SELL
|
RM2.90
|
||||||||||
|
The share price has surged c11% over the past 3 days on improved
volume. This probably on the back of improved recognition of Co being a
dominant developer in Seremban and a major beneficiary of the Klang Valley
property boom, as well as commendable Q3 results. Co also surprised with a
10s dividend declared for the quarter. It stil has over 2000 acres of
undeveloped landbank located some 15-20 mins from Seremban town centre. Since
its IPO in May, Co has added 3 parcels of land into its portfolio ( 430 acres
in Labu & Kemayan and 1.1 acre in KL ), resulting in GDV being boosted by
RM1.8b to RM8.2b. Group’s lofty margin is expected to hover c40% ( low land
cost & pent up demand ), above the sector’s average. Its strong
cash position should also underpin the attractive dividend payout ( 40%
payout sustainable). However with the price run-up, it’s discount to RNAV has
narrowed to c43%, quite in line with valuation for other small cap
developers. Following the Budget 2014 which contained several measures to
curb excessive speculation in the property sector, it recently added the “net
selling price” to determine the LTV ( loan to value) ratio. This is negative,
and some can argue the adverse impact on the sector can be more pronounced
than initially anticipated. Transaction volume may fall going into 2014. We
see this share price jump a good opportunity to sell into strength as it’s
cheaper valuation dissipates – Trading Sell ( Buyback at RM 2.90, 48% disc to
RNAV ).
(AK)
 |
||||||||||||||
|
GADANG (9261)
|
20/11/2013
|
RM0.99
|
BUY
|
RM1.41
|
||||||||||
|
Interest in the stock has picked up again over the
last few trading sessions, accompanied with a price rise of c5%. It is
understandable given that the group is currently trading at c6.5x FY05/14,
below its small cap construction peers PER of closer to 9x. Gadang can be
viewed as an emerging civil engineering name, after it completed &
secured several sizeable projects ( incl LKSA Highway, MRT1-V2 ). OB is
healthy at RM1.58b which should support earnings until 2016 & the
construction tender book stands at RM6b. It’s chances of securing up to RM400m
every year is also considered bright, given the robust construction sector (
govt programs), strong track record & strong financials. While
construction remains its main business ( 75% revenue), we also like Gadang
for its efforts to diversify its business into properties (16%), utilities (
7%) & plantations. Group’s strong cash flow (cash balance RM134m in FY13
from land sales) which translates into net cash/share of 26s, should pave the
way for expansion – Buy ( TP RM1.41 based on 9x FY14 EPS ).
(AK)
 |
||||||||||||||
|
Calls for NOV Week 2
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
E&O(3417)
|
13/11/2013
|
RM2.01
|
Trading BUY
|
RM4.20
|
RM2.02
|
-0.4%
|
||||||||
|
BJFOOD(5196)
|
13/11/2013
|
RM1.63
|
ACCUMULATE
|
RM2.07
|
RM1.69
|
+3.6%
|
||||||||
|
NAIM (5073)
|
14/11/2013
|
RM3.56
|
ACCUMULATE
|
RM5.12
|
RM3.67
|
+3.0%
|
||||||||
|
ALAM (5115)
|
14/11/2013
|
RM1.40
|
Technical BUY
|
RM1.68
|
RM1.51
|
+7.8%
|
||||||||
|
WASEONG (5142)
|
15/11/2013
|
RM1.70
|
ACCUMULATE
|
RM2.00
|
RM1.68
|
+1.2%
|
||||||||
|
PERDANA (7108)
|
15/11/2013
|
RM1.94
|
BUY
|
RM2.30
|
RM2.00
|
+3.0%
|
||||||||
|
TM(4863)
|
18/11/2013
|
RM5.16
|
Trading BUY
|
RM5.90
|
RM5.12
|
-0.8%
|
||||||||
|
SWKPLNT(5135)
|
18/11/2013
|
RM2.50
|
BUY
|
RM2.90
|
RM2.56
|
+2.4%
|
||||||||
|
MAYBULK (5077)
|
19/11/2013
|
RM1.71
|
BUY
|
RM2.00
|
RM1.74
|
+1.7%
|
||||||||
|
FGV (5222)
|
19/11/2013
|
RM4.30
|
BUY
|
RM4.93
|
RM4.52
|
+5.1%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|