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FLOWS
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Wednesday, 11 December, 2013
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BUY
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FGV,
MAYBANK, WCT
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SELL
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GENM, CIMB, GAMUDA
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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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SUNWAY (5211)
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11/12/2013
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RM2.68
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ACCUMULATE
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RM3.20
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The share price has drifted lower over the
past 2 months (-17%) partly on the back of negative news flows on the
property & lack of catalyst on the construction sector. We believe this
is a good opportunity to accumulate the stock as the group’s fundamentals
remain strong. Its recent Q3 core earnings was in line with the street’s.
It’s construction OB stands at RM3b (with RM1.5b worth of wins YTD), with
construction EBIT margin expected to remain healthy at 5-7%. The property
division would also ensure steady earnings delivery with its unbilled sales
at RM1.8b. The group has launched cRM1.7b worth of projects YTD, surpassing
its initial launch target of RM1.5b for 2013. Property EBIT margin expected
to remain at a healthy 25-28%. Its next anticipated launch of Sunway Iskandar
in Medini (GDV RM330m) is expected to do well. Group is currently trading at
an attractive 10.3x FY14, with several re-rating catalysts in place – good
earnings visibility from existing jobs, Sunway Iskandar being an appealing
Iskandar Malaysia proxy & expectation of further upside from domestic
building jobs in 1H2014; Accumulate ( TP RM3.20, 12.5x FY14 EPS ).
(AK)
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ENGTEX (5056)
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11/12/2013
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RM1.68
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Trading BUY
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RM2.00
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The share price has consolidated well for the past 6
weeks around current levels, after a 50% run up from RM1.10 (largely led by
expectation of a demand up-cycle for the group's products). The appeal for
Engtex’s products still hold - management estimates future water pipe
demands could exceed RM5.4b after the water issue is resolved (driven by the
Langat 2 Water plant and the Pengerang project, the RM5b worth of pipes for
replacement market and the demand from new townships). Its manufacturing
plants have been running at 50% average utilization rates, so production can
easily be ramped up to 70-80% utilization to meet the increased demand. The
replacement market is significant, as water loss due to leakage averaged c37%
in 2011, with some states recording more than 50%. Co is also aiming to
participate in the Singapore government's NEWater project. Currently trading
at 7x FY14, although marginally higher than its 5-year average PER of
c6X, we consider this attractive given it’s potentially explosive growth
potential, especially with the increased momentum & efforts to resolve
the water issue - Trading Buy ( TP RM2.00, 8.5x FY14 ).
(AK)
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Calls for DEC 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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SENDAI (5205)
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4/12/2013
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RM1.16
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ACCUMULATE
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RM1.60
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RM1.18
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+1.7%
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TROP (5401)
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4/12/2013
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RM1.36
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ACCUMULATE
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RM1.70
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RM1.38
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+1.4%
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SUPERMX (7106)
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5/12/2013
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RM2.68
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BUY
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RM3.40
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RM2.73
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+1.8%
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UOADEV (5200)
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5/12/2013
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RM1.98
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BUY
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RM1.70
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RM2.00
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+1.0%
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IOICORP (1961)
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6/12/2013
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RM5.80
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Trading BUY
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RM6.20
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RM5.93
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+2.2%
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JTIASA (4383)
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6/12/2013
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RM2.22
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BUY
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RM2.90
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RM2.23
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+0.4%
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WCT (9679)
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9/12/2013
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RM2.24
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Trading BUY
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RM2.50
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RM2.16
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+3.5%
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WTK (4243)
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9/12/2013
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RM1.23
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Trading BUY
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RM1.50
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RM1.20
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-2.5%
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KULIM (2003)
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10/12/2013
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RM3.58
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Trading BUY
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RM4.00
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RM3.58
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0.0%
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SEALINK (5145)
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10/12/2013
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RM0.40
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Trading BUY
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RM0.50
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RM0.395
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+1.2%
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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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