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FLOWS
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Thursday, 19 December 2013
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BUY
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MAYBANK,
MISC, MAXIS
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SELL
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PCHEM, SIME, UEMS
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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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UNISEM (5005)
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19/12/2013
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RM0.89
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BUY
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RM1.30
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Unisem has been trading around a band of
RM0.84 – RM1.15 thruout the whole of 2013 and is currently trading close to
the bottom. Although group’s earnings are still in the red, we see a
tremendous improvement from the year before due to its procedures to
rationalize its operations. Its turnaround story revolves around moving from
its legacy products to newer products such as its Wafer level chip scale
packages (WLCSP) and MEM motion sensors that are used in phones, tablets etc
that offers a higher margin as well as a higher demand for these chips. Let
the numbers show, global demands for semi-conductors are improving vastly
thus we believe the business of this undervalued company would be sustainable
(please refer to attachments for statistics). Currently only trading at 0.59x
P/b for fy13 and the group is expecting to return into the black in 2014.
Factors such as the strengthening USD & outperforming tech stocks in the
U.S will also benefit the group directly. Technical indicators are improving
with RSI steadily rising; while MACD turned upwards. Accumulate aggressively
at these levels before the turnaround quarter kicks in. Target price of
RM1.30 as an immediate target of a technical breakout.
(RL)
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BURSA (1818)
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19/12/2013
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RM8.09
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BUY
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RM9.84
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Bursa will continue to thrive as the
improving market conditions continue to favour the stock. While, the CI has
been seeing a slight improvement in trading volume since the election, Bursa
expects a couple more key IPO’s (e.g Malakoff & IWH) and capital raisings
to contribute to the market volume as well as attract more foreign funds next
year. In 2014, we believe the CI will continue to outperform as there were
signs of fund outflows from Thailand and Indonesia due to the political
unrest that will indirectly translate to Malaysia. Furthermore, we’d most
likely see a new stream of earnings as Bursa had just recently launched new
gold futures trading as well as introductions of new ETF and derivative
products. In conclusion, we like Bursa as a beta play (1.22 beta) for it is a
proxy to the equity market and its resilient growth fundamentals. Currently
stock is trading at 19x FY15 PE, vs 7 year average of 29x. Group paid 6%
yield for FY13 (including spec div of 3%) and is expected to maintain its
4.5% FY14. Long Term BUY with a target price of RM9.84 with an estimate of 41
sens eps (10% CAGR for next 2 years) at 24x PE FY15.
(RL)
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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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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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RM2.29
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-3.0%
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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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RM10.10
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+0.1%
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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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RM4.66
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+2.6%
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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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RM1.66
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+2.4%
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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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RM2.69
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-1.9%
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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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RM4.10
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-1.0%
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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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RM4.03
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0.0%
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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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RM1.92
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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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