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FLOWS
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Tuesday, 26 November, 2013
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BUY
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GTRONIC,
SKPETRO, UEMS
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SELL
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MAYBANK, TENAGA,
AXIATA
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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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BJLAND (4219)
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26/11/2013
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RM0.815
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BUY
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RM1.47
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The SOP of BJLand ranges from RM1.60 to > RM2.50
depending on how optimistic the analysts are on BJLand's property development
projects in Vietnam (70% of property development & investment RNAV &
>90% of forecasted GDV). Recently, international newswire has been
reporting of foreign investors flocking into the Vietnamese stock market and
this rush has exhausted the government-limited supply of shares, freezing out
some as inflation dropped to a14-month low and the central bank has cut its
benchmark refinancing rate 8 times since the beginning of 2012. Exports jumped
13% in October, more than twice the pace in China, and pledged FDI surged 66%
in the first 10 months of the year. The Vietnam's Communist Party, which has
ruled over the reunified country since 1976, is also revising the
constitution in a draft version dated 17/11/13 that highlights the importance
of the private sector, quite similar to the plan disclosed by the Chinese
leaders recently. The Vietnamese finance ministry has also submitted a plan
to raise the foreign ownership cap from 49% to 60% of voting shares. Year to
date, Ho Chi Minh Stock Exchange index gained 22.4% & the Dong is one of
the best Asian performing currencies against the USD. BJLand had earlier
bought land & entered into JVs with various Vietnamese state institutions
for joint developments of townships around the main cities of Ho Chi Minh
& Hanoi. The company has also managed to secure approvals for the
investment license to start work. With the current favourable macro
environment, these multibillion dollar projects have a better chance of
success compared to a year ago. BjLand is an interesting proposition for the
longer term especially when it has been totally ignored by the analyst
community because of its poor performance in the past years. In addition, Tan
Sri Vincent Tan has over the last 2 months bought 79.396m shares ranging from
RM0.75 to RM0.895 in his personal capacity. There were also block crossings
of 436m shares (8.72%) over the last few months where no reporting was made
on changes in major shareholdings with the exit of UBS AG as a major
shareholder. The fact that the price of the stock has been quite stable while
UBS AG was exiting denotes strong hands absorbing the float - a possible new
major shareholder who notices BJLand's potential? Long-term buy
(PT)
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BSTEAD (2771)
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26/11/2013
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RM5.33
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ACCUMULATE
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RM6.00
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Stock is on the verge of confirming a break out from
a 5-month reverse head & shoulder pattern with the neckline resistance
around the RM5.30 level. The volume, though,has not been impressive enough to
confirm this break out. However, the weekly macd indicator has just turn
positive after being negative since the end of June which denotes positive
buying momentum. It is appropriate timing to begin accumulation of this stock
as its fundamentals have also changed for the better with the sharp
turnaround in the performance of its shipbuilding & heavy industry
division backed by the inking of the RM9b combat vessels contract and the
potential for more patrol boat contracts from the Malaysian Maritime Enforcement
Agency to increase security in Sabah Waters. The plantation sector would also
benefit from the higher CPO prices coupled with the catalyst of a potential
plantation arm IPO in 2014. Boustead is currently preparing for the IPO with
the ongoing privatisation of its plantation real estate REIT & acquiring
a brownfield plantation in Sabah (2,409.8 ha for RM180m). With the
improvement in these 2 major divisions, the company is likely to report
better year on year profit as the pharmaceutical, retail & banking divisions
are expected to continue to see steady growth. Boustead trades an attractive
FY14 & FY15 PER of 12.5x & 11.6x, and is a solid dividend-yielding
stock with yields of 5.8% to 6.3% for FY14/15. Accumulate
(PT)
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Calls for NOV Week 3
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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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MAYBULK (5077)
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19/11/2013
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RM1.71
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BUY
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RM2.00
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RM1.70
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-0.6%
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FGV (5222)
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19/11/2013
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RM4.30
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BUY
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RM4.93
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RM4.50
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+4.6%
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MATRIX (5236)
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20/11/2013
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RM3.24
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Trading SELL
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RM2.90
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RM3.23
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+0.4%
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GADANG (9261)
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20/11/2013
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RM0.99
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BUY
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RM1.41
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RM1.05
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+6.0%
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TSH (9059)
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21/11/2013
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RM2.83
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Take Profit
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RM2.50
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RM2.79
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-1.5%
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HOVID (7213)
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21/11/2013
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RM0.345
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ACCUMULATE
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RM0.41
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RM0.345
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0.0%
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UEMS (5148)
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22/11/2013
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RM2.25
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BUY
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RM2.55
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RM2.25
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0.0%
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DAYA (0091)
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22/11/2013
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RM0.365
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BUY
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RM0.41
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RM0.36
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-1.4%
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SIME (4197)
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25/11/2013
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RM9.56
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BUY
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RM10.50
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RM9.60
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+0.4%
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SALCON (8567)
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25/11/2013
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RM0.665
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BUY
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RM0.75
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RM0.685
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+3.0%
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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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