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FLOWS
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Monday, 10 February, 2014
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BUY
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SKPETRO,
UEMS, MISC
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SELL
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MAXIS, TM, GENTING
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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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OLDTOWN (5201)
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10/2/2014
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RM2.01
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Trading BUY
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RM2.38
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After hitting a low of RM1.90 share price has
recovered and consolidated at its triangle neckline of RM2.01 for past few
sessions. Break above this level could see share price retest RM2.12 (200MA).
Oldtown has seen the commissioning of its new plant that is built to support
its fast growing FMCG division at 20% growth rate per annum. Factory is well
equipped with Green features and automated packaging machines. Going forward,
key catalyst includes 1) penetration into tier 2 China (eg: Tianjin, Suzhou,
Wuhan), 2) accelerate outlet opening in china from 4 to 14. 3) Recovery of
F&B margins following price adjustments. 4) Introduction of Oldtown
Signature E catered for upper class café. 5) Increased local tourism from
Visit Malaysia 2014. Oldtown is projected to grow at CAGR of 17% over next 2
years hence we peg TP at RM2.38 (17xMarFY15PE).
(TYK)
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TCHONG(4405)
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10/2/2014
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RM5.60
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ACCUMULATE
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RM7.31
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Share price has retraced 17.4% since
Oct’13 and close to 10% since the start of the year with strong support seen
at current levels. We advocate an accumulate call as it only trades at
9.9xFY14 PER compared to 5 years average of 13x. Key catalyst for tanchong
include 1) continued expansion into Indochina namely Vietnam, Cambodia and
Myanmar. 2) starting its contract manufacturing for Mitsubishi Motors Malaysia
in 2014 with initial target of producing 5k units of Mitsubishi ASX and
potentially reaching 10,000-15,000units should MMC decide to contract
assemble other models here. 3) Potential launch of new A/B segment models 4)
qualification for tax incentives under Malaysia’s EEV program for its Nissan
Leaf. 5) Consumer spending ahead of implementation of GST in 2015. Tan Chong
Share price was also affected by its removal from Shariah list as company
held more than 33% cash to assets however it intends to appeal the breach in
financial ratios due to the nature of its business that requires building up
and running down inventory. Accumulate with TP: RM7.31 (13xFY14)
(TYK)
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Calls for JAN Week 4/ FEB Week 1 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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SKPETRO (5218)
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29/1/2014
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RM4.31
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ACCUMULATE
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RM4.90
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RM4.51
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+4.6%
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ARMADA (5210)
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29/1/2014
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RM4.05
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ACCUMULATE
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RM4.50
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RM4.01
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-0.9%
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CYPARK (5184)
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4/2/2014
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RM2.16
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ACCUMULATE
on weakness
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RM2.50
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RM2.30
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+6.4%
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ALAM (5115)
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4/2/2014
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RM1.44
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ACCUMULATE
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RM1.60
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RM1.52
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+5.5%
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CRESBLD(8591)
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5/2/2014
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RM1.44
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BUY
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RM1.73
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RM1.48
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+2.7%
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DIGI (6947)
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5/2/2014
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RM4.68
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ACCUMULATE
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RM5.20
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RM4.97
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+6.1%
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UOADEV (5200)
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6/2/2014
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RM1.83
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Trading BUY
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RM2.20
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RM1.85
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+1.0%
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AEON (6599)
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6/2/2014
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RM11.86
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ACCUMULATE
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RM13.30
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RM12.40
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+4.5%
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SPSETIA (8664)
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7/2/2014
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RM2.74
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Trading BUY
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RM3.30
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RM2.75
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+0.3%
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NAIM (5073)
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7/2/2014
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RM3.41
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ACCUMULATE
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RM3.80
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RM3.38
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-0.9%
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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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