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FLOWS
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Thursday, 12 December, 2013
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BUY
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PERISAI,
GADANG, DIGI
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SELL
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GENTING, IOICORP,
CIMB
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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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AIRASIA (5099)
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12/12/2013
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RM2.36
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BUY on weakness
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RM3.24
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Airasia’s share price shed
approximately 21% since recent high in Mid October after group posted its 3rd
quarter results which came in mixed that showed higher revenue but weaker
yield (lower fare due to competition) and lower contributions from its Thai
and Indonesia associates. We however saw some positive development whereby
its ancillary income charges improved and the reduction of operation cost
(due to introduction of self check-in services). Moving forward, we expect
performance to improve as Q4 is seasonally their strongest quarter because of
the holidays towards year end. 2014 would also be in Airasia’s favour as the
country will be promoting Visit Malaysia year 2014 on a global basis; also,
the opening of KLIA2, where Airasia will be the main tenant, will further
boost passenger traffic and improve capacity of the group. Airasia is
currently trading at undemanding PE of 7.27x for FY15 vs average of 10x.
Technical indicators remained in the negative territory with MACD turning
down; RSI however is only at 32%. Given the current situation we believe a
BUY on weakness call is sufficient as the counter is also a possible
candidate for the year end window dressing. TP RM3.24 based on 10x PE for
FY15.
(RL)
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MAYBANK (1155)
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12/12/2013
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RM10.08
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ACCUMULATE
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RM11.33
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MAYBANK (RM10.08) – Maybank’s
fundamentals continue to improve especially for its Indonesian and Investment
bank business. The bank’s move to regionalize CFS (a major unit that houses
its consumer, SME and business banking operations within the region) will
also synergize their organic growth in the regions altogether. This allows
the group to transfer expertise to wherever needed, synchronize marketing
plans and product development as well as improve efficiency for the group.
Moving into 2014, the group expects to see lower loan growth due to the
softening of property sales but will definitely benefit from the Economic
Transformation Program (ETP) as well as the government’s efforts to
strengthening the SME segment in the country as part of the 12 (NKEA)
National key Economic Areas. Valuations deemed attractive as it trades at
12.2x FY15 PE vs their 7 year average of 16.5x. Dividend payout marginally higher than its
peers at 5.5% est. Technical indicators showed a turnaround in share price as
it broke above its 16 weeks downtrend a few days back. Weekly chart is
forming a double bottom with a potential 95 cents upside from RM10.38. Given
its solid fundamentals and its well supported share price we believe that
this is a good opportunity to accumulate the stock. TP of RM11.33 based on
technical breakout calculation.
(RL)
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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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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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RM2.76
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+2.9%
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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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RM1.99
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+0.5%
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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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RM5.80
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+0.0%
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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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RM2.25
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+1.3%
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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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RM2.21
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+1.4%
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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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RM1.21
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-1.7%
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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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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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RM2.72
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+1.4%
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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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RM1.66
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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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