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FLOWS
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Wednesday, 18 December 2013
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BUY
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DIALOG,
CIMB, RHBCAP
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SELL
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AXIATA, TM, TENAGA
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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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DELEUM (5132)
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18/12/2013
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RM4.03
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BUY
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RM4.68
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The
share price has retraced c13% over the past 6 weeks from the RM4.60 level. We
see this pullback a good opportunity to accumulate the stock. The recent Q3
results were in line with street, with net profits higher on the back of
improved margins (net profit margins up to 11.4% from 9.7% in FY12) across
the various segments and there was a turnaround in the Maintenance, Repairs
& Overhaul div ( MRO). Group’s OB currently stands at RM3.4b ( inclusive
of the recently Petronas 7-year award to supply turbo machinery maintenance
services for solar turbines which would yield recurring operating profit of c
RM40-50m pa for the next 7-10 years) & together with the other contract
secured earlier in the year, earning growth in FY14 is expected to be strong
( +18%). Co offers solid earnings growth (12% 3-year CAGR) backed by steady
recurring income from long-term contracts as well as steady dividend payouts
( 3.6% & 4.4% for FY13&14). Trading at 10.3x FY14 EPS, RSI @ 35 ;
Accumulate ( TM RM 4.68 based on 12x FY14, versus O&G small cap peers
peak cycle average of 13x).
(AK)
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E&O(3417)
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18/12/2013
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RM1.93
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Trading BUY
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RM2.76
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Share price is trading at the trough of its 6
months trading range, partly due to the subdued property sector sentiment
after Budget 2014, as well as the below market 1H FY14 performance ( 34% street,
although it can be said to be in line as 2HFY14 should be stronger). Although
Co will be negatively affected by the cooling measures, we believe that the
company specific factors should drive the stock’s valuations. Co’s share
price is positioned to get a significant kick from the crystalisation of Seri
Tanjung Pinang 2 ( STP2) given the almost tripling in NAV. The Detailed
Environmental Impavt Assessment ( DEIA) is expected to materialise after the
CNY. The potential approval of the STP2 project remains the stock’s key
catalyst. Also, given the shareholding structure, a potential takeover by
Sime is a wild card possibility ; Trading Buy ( TM RM 2.76, 40% discount to
RNAV RM4.60).
(AK)
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Calls for DEC week 2/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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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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RM2.64
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-1.5%
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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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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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RM2.35
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-0.4%
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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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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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RM4.64
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+2.2%
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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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RM1.64
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+1.2%
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MRCB (1651)
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16/12/2013
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RM1.24
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Trading BUY
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RM1.40
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RM1.26
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+1.6%
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UEMS (5148)
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16/12/2013
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RM2.30
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BUY
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RM2.60
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RM2.32
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+0.8%
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DRBHCOM (1619)
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17/12/2013
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RM2.74
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BUY
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RM3.10
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RM2.70
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-1.5%
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TAANN (5012)
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17/12/2013
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RM4.14
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BUY
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RM4.56
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RM4.13
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-0.3%
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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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