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FLOWS
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Friday, 13 December, 2013
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BUY
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TM,
DIGI, SKPETRO
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SELL
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PCHEM, AMBANK,
MAYBANK
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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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GAMUDA (5398)
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13/12/2013
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RM4.54
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BUY
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RM5.00
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Gamuda (RM4.54) - Gamuda has shed about 10% since it peaked
at the end of October to the low of RM4.47, close to its 61.8% retracement
support of its rally from RM4.12 (August) to RM4.93 (October). This was on
the back of disappointment over the inconclusive Selangor state offer
for SPLASH and with it went the special dividend that the market was
expecting the company to declare following the deal. Even if the full
SPLASH purchase consideration is paid as dividend, i.e. RM0.32/share, the
loss in market cap of RM.46/share has more than discounted this negative development.
In addition, with the forecast of critical water supply shortages in the next
few years in KL & Selangor, coupled with the said backing of the PM to
resolve the water crisis, we are confident that the state government
(together with PAAB) could revert with their earlier offer which Gamuda was
agreeable. Anyway, the raison d’etre for Gamuda being the investors' top pick
for the Malaysian construction sector is that they are the sole contractor
with expertise & machinery for MRT tunnelling, given them considerable
advantage for the bidding of the RM25b MRT Line 2 project where tunnelling
portion alone is at RM10b. Cabinet approval is expected to be in early 2014
which will be the main catalyst for Gamuda. It is also trading at attractive
valuations relative to historical PER of 21.6x with PER of 14.8x for FY14 and
earnings growth of 14% for the next 2 years. Buy
(PT/LJN)
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YTL (4677)
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13/12/2013
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RM1.62
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Trading BUY
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RM1.80
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YTL (RM1.62) – a potential candidate for window-dressing as
gleaned from the charts of the last 3 years, especially with a year to date
loss of 15% vs the KLCI 9% gain. The stock shot up from a low of RM1.49 to a
high of RM1.66, forming the initial leg of a rally, and is now trading in a
parallel band between RM1.58-1.65, forming a flag continuation pattern with a
break out level at RM1.64, and an upside objective of RM1.80. Recent media
news reported that the YTL Group has been aggressive in bidding for new power
plants and a case in point is the Track 3B project to build a 2,000 MW
coal-fired plant where it was said to have outbid Tenaga by submitting the
lowest bid at 25.2 sen per kWh. Their huge cash board, while giving them the
financial muscle to outbid their rivals, is also a source for possible
capital management exercise which the YTL Group is renowned for. Trading buy
(PT/LJN)
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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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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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RM5.77
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-0.6%
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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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RM2.24
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+0.9%
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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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RM2.18
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-2.7%
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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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RM3.56
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-0.6%
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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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RM0.385
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-3.75%
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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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RM2.70
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+0.7%
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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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RM1.69
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+0.6%
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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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RM2.38
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+0.8%
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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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RM10.02
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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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