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FLOWS
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Thursday, 5 December, 2013
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BUY
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IOICORP,
MAYBANK, UMW
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SELL
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CIMB, AXIATA, CMSB
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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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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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Group posted its 3Q results recently which
came largely inline with most of streets estimates as it was driven by stronger
sales volume as well as lower raw material price. Moving forward the group
should see the commissioning of Lot 6059 and Lot 6058 (Klang) in 1Q2014 and
would produce an additional 5.5bil pieces of nitrile glove from its current
5.4bil. The margins are also expected to improve as these 2 plants are fully
automated trimming labour cost and at the same time improving efficiency.
Moving forward, group is currently drawing out its expansion plans for Glove
city and Supermx Business park for the next 2 years in objective to increase
capacity and support the glove making industry at a centralized area. At
current price, we feel that the stock is still undervalued as it trades at a
33% discount to sector average and is the lowest p/e amongst its peers, 11.5x
FY14 PE vs sector average of 16.5x. Recent strength in USD against the MYR
would also further benefit the group as well as support the share price.
Technical chart has formed an ascending wedge with a possible breakout
neckline above the RM2.80 level. We advocate a Buy call with an immediate
target of RM3.05 and possibly RM3.40 based on 14.5x PE for FY14.
(RL)
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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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Weakness in the share price was largely
attributed to the government’s efforts to rid of DIBS. Share price had since
then fell 16% from the beginning of the month and had consolidated well
around the 1.98 levels. Fundamental remains intact with earnings coming from
ithe Desa Green, Horizon, Kencana Square and expect new sales of its recent
launch Southview @ Bangsar South achieving sales closer to the RM2bn mark.
Looking ahead, group’s swift shift into affordable homes to curb the effects
of DIBS would also cushion any slowdown in sales for the next couple of
years. Currently stock is trading at an attractive 7x PE for FY14, 0.97x p/b,
and has a div yield of 6.97% at this price. Group’s balance sheet is strong
as well with approximately 0.45sens in cash. Technical
charts consolidated well at current levels; recent report shows that EPF has
been accumulating. RSI only 26%. MACD cutting up. Buy with a TP of RM2.45
based on 33% discount to our RNAV of RM3.67.
(RL)
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Calls for NOV Week 4 / DEC week 1
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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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MAHSING (8583)
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28/11/2013
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RM2.16
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Trading BUY
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RM2.60
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RM2.22
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+2.7%
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GAMUDA (5398)
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28/11/2013
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RM4.76
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BUY on weakness
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RM5.20
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RM4.63
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-2.8%
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PANTECH (5125)
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29/11/2013
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RM0.995
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ACCUMULATE
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RM1.15
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RM0.97
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-2.6%
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MHB (5186)
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29/11/2013
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RM3.74
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ACCUMULATE
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RM5.20
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RM3.80
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+1.6%
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PMETAL (8869)
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2/12/2013
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RM2.36
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BUY
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RM3.12
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RM2.30
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-2.6%
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PCHEM (5183)
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2/12/2013
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RM6.75
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Trading BUY
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RM7.30
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RM6.73
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-0.3%
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SYSCORP (5173)
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3/12/2013
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RM0.435
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BUY
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RM0.65
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RM0.45
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-3.4%
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CMSB (2852)
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3/12/2013
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RM6.09
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Take Profit
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-
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RM6.01
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-1.4%
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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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RM1.16
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-0.0%
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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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RM1.32
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-3.0%
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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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