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FLOWS
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Monday, 20 January, 2014
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BUY
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ASTRO,
IOICORP, MAYBANK
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SELL
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SKPETRO, YTL, IHH
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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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PUNCAK (6807)
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20/1/2014
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RM3.10
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ACCUMULATE
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RM3.80
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Puncak (RM3.10) - has shed >11% to RM2.98
before rebounding to RM3.10 due to news report of the Selangor state
government terminating the raw water license of Puncak's subsidiaries in
favour of state enterprise, KDEB. We are of the opinion that Puncak's
operations will remain as normal as the state government would not wish to
jeopardized the water supply situation of the state as Puncak treats &
supplies near to 43% of the state water supply and the state only has a
current reserve margin of 1,6%. The state government has also agreed to let
the Federal government take over the water assets of the water
concessionaires in the state which will be easier to end the impasse of the
last 5 years and provide a reasonable valuation for Puncak water assets.
Even assuming the recent offer from the state government, Puncak has a
sum-of-parts (SOP) valuation of RM4.25 to RM5.70 with a median SOP of
RM4.60. Applying a 20% discount to SOP would derive a target price of RM3.68.
Accumulate
(LJN/PT)
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FAVCO (7229)
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20/1/2014
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RM3.25
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ACCUMULATE
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RM3.75
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Favco (RM3.25) - trading at a
attractive PER of 9.0x & 7.7x for FY14 & Fy15
respectively, and a niche player in the customized crane sector of
the offshore O&G, construction and ports/wharf industries. It is a
well-recognized brand in the industry with established reputation among its
clients. The buoyant outlook in the O&G industry would indirectly
translates to more orders for the company. Its current order book stands
at RM1.04bn, an all-time high, which provides visibility for earnings up to
FY15. Its parent, Muhhibah, has soared by 13% in less than 2 weeks on
speculation of contract wins which could also benefits Favco if it is
related to the O&G industry as cranes will be required for both the
bigger structure jobs and/or contracts for the building of the work boats/barges
which are currently in demand in the ASEAN region. Accumulate
(LJN/PT)
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Calls for JAN week 2/Week 3 2014
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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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SPSETIA (8664)
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9/1/2013
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RM2.89
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Trading BUY
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RM3.30
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RM2.96
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+1.3%
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KKB (9466)
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9/1/2013
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RM2.60
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ACCUMULATE
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RM2.90
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RM2.55
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-2.0%
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PHARMA (7081)
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10/1/2013
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RM4.46
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BUY
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RM5.40
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RM4.43
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-0.7%
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SCIENTX (4731)
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10/1/2013
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RM5.53
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BUY
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RM6.64
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RM5.22
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-5.7%
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GAMUDA (5398)
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13/1/2013
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RM4.52
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ACCUMULATE
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RM4.90
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RM4.28
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-5.4%
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IOICORP (1961)
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13/1/2013
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RM4.24
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ACCUMULATE
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RM4.80
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RM4.14
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-2.4%
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UZMA (7250)
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15/1/2014
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RM5.75
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Trading Sell
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RM5.31
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RM5.75
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0.0%
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WCT (9679)
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15/1/2014
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RM2.20
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ACCUMULATE
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RM4.80
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RM2.18
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-1.0%
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MEDIA (4502)
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16/1/2014
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RM2.57
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Trading BUY
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RM2.90
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RM2.53
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-1.6%
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LAFMSIA (3794)
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16/1/2014
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RM7.90
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Technical BUY
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RM9.00
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RM7.90
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0.0%
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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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