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FLOWS
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Thursday, 13 February, 2014
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BUY
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PERDANA,
DIGI, GENTING
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SELL
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TENAGA, CIMB, AXIATA
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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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CMSB (2852)
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13/2/2014
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RM7.08
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ACCUMULATE
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RM8.00
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Although the
share price has recovered partly from the sell-down to the RM6.60 level
following news reports that the Sarawak CM was stepping down, we believe the
recovery still has more room to go. Business is expected to go on as usual,
and there’s strong likelihood that the new CM will likely carry on with SCORE
developments. The cement division is likely to keep its strategic monopoly in
the state, property division will continue to be backed by its vast low cost
landbanks, the road maintenance division should continue to provide strong
cash flows despite non-renewal risks (expires in 2018 ) and group’s
involvement in SCORE projects will go on via its various JVs -51% Samalaju
Property Developments, 20% OM Materials and the recently signed 40% stake in
Malaysian Phosphate Additives. The JVs are all CMSB’s next growth engines. We
believe the market is under appreciating the natural monopoly of some of the
group’s divisions ( cement, materials units) in the state. Trading at
undemanding PE of 11.8x FY14 & 9.8x FY15; Accumulate ( TP RM8.00, PE13.3x
FY14)
(AK)
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ZHULIAN (5131)
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13/2/2014
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RM3.16
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Trading BUY
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RM4.00
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The share price has plumetted from the RM5 level
just a month ago; ie down 36% , due to the softer Thai market brought about
by the longer than expected political uncertainties in Thailand and also the
fall in Thai Baht against the USD. There’s also concern that the demand in
the domectic market will be flat following the tighetening of household
credit and the sluggish consumer spending locally. The selldown has brought
valuation down to an attractive PE of 9.5x for FY14, compared to Amway’s 18x
for FY14. While the near term prospect remain uncertain, we reckon the
political crisis in Thailand will eventually be over and sales activity
should pick up post the Thai elections. In the meantime, group is expanding
into the Myanmar market in 1H14. On the domestic front, there is minimal
impact from the recent fuel & electricity tariff hikes. Zhulian remains
amongst the market leader of the MLM business, syariah compliant, will
benefit from the weakening Ringgit trend and offers high earnings visibility
in terms of EPS growth and a net margin ( 26%) that is way higher than say
Amway ( 12.5%). It should not be trading at such a discount to that of Amway,
MACD is about to cut upwards, RSI at 22 ; Trading Buy ( TP RM4.00, PE of 12x
FY14 )
(AK)
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Calls for FEB Week 1/Week 2 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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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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RM1.90
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+3.8%
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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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RM13.14
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+10.7%
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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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RM2.79
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+1.8%
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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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RM3.56
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+4.3%
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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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RM1.96
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-2.5%
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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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RM5.71
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+1.9%
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SCOMIES (7045)
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11/2/2014
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RM0.90
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BUY
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RM1.01
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RM0.90
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0.0%
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MATRIX (5236)
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11/2/2014
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RM3.57
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BUY
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RM3.90
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RM3.77
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+5.6%
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KULIM (2003)
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12/2/2014
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RM3.19
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BUY
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RM3.50
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RM3.21
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+0.6%
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MHB (5186)
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12/2/2014
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RM3.68
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BUY
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RM4.13
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RM3.68
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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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