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FLOWS
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Friday, 21 February, 2014
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BUY
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KNM,
PBBANK, DIGI
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SELL
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SKPETRO, UEMS,
TENAGA
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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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SEALINK (5145)
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21/2/2014
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RM0.445
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BUY
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RM0.55
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Share price broke out from a double bottom formation
recently with further confirmation of clearing an immediate flag pattern
resistance on impressive volume. Weekly macd is also signalling a buy call as
it has just turned positive last week with a golden crossing. Sealink’s main
earnings come from the O&G industry as its chartering of marine support
vessels business is predominantly to the offshore O&G players. It has a
young and diverse fleet of 40 vessels that cater to a wide base of reputable
clients. It is not surprising that this division has shown significant year-on-year
improvement in 3Q’13 results with both higher utilization & charter rates
registered in the industry. This division has also been boosted by the
delivery of 2 state-of-the-art diesel-powered hybrid anchor handlers with
DP-2 positioning which will contribute handsomely to Q4’13 & FY14
profits. The shipbuilding & repair division, which has been suffering
losses the last 2 years, is showing signs of improvement with the
announcement of contracts secured for the disposal of 3 vessels in Dec’13 and
expectations of further orders from the buoyant local O&G sector.
Sealink’s valuation is highly attractive with a p/bk of 0.5x & FY14 PER
of 6.6x compared to a current favourite with similar business (albeit
different offshore O&G assets), Coastal Contract, with p/bk of 2.4x &
FY14 PER of 13.0x. Buy
(PT)
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PENERGY (5133)
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21/2/2014
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RM2.34
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ACCUMULATE
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RM2.70
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Stock has retraced 13% from its January 2014 high of
RM2.70 and is now sitting on the 61.8% retracement of its recent rally from
RM2.12 in Dec’13 to RM2.70 in Jan’14. This is expected to be a strong
support for the current correction as this level coincides with its
Oct’13 high which will be a resistance-turned support. Hence, it is
appropriate to resume accumulation of the stock now, especially with its
fundamentals assured from its recent win of an estimated RM2.5b
contract for 5 years from Petronas Carigali for hook up, commissioning and
topside maintenance. PEnergy also has an option to purchase 2 work boats with
one to be delivered by mid-year and the other by the 3rd quarter.
These vessels will add to their bottom line as currently there is an
imbalance of demand exceeding supply. PEnergy has ventured further into the
local O&G sphere with the acquisition of a 51% stake in Bumi Subsea which
is a Petronas-licenced contractor for underwater inspection, repair and
maintenance jobs. In addition, its RSC in the Kapal, Banang & Meranti
cluster fields has commenced its first oil production in Dec’13, with an
initial production rates of 10,000 bpd and peak production of 13,000bpd. All
these activities will ensure a significantly better financial backdrop for
FY14. Accumulate
(PT)
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Calls for FEB Week 2/Week 32014
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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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PRESBHD (5204)
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14/2/2014
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RM3.07
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BUY
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RM3.40
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RM3.29
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+7.1%
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TAANN (5012)
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14/2/2014
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RM4.06
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BUY
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RM4.68
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RM4.15
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+2.2%
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MMCCORP (2194)
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17/2/2014
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RM2.79
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Trading BUY
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RM3.20
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RM2.79
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+0.4%
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MRCB (1651)
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17/2/2014
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RM1.48
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ACCUMULATE
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RM1.80
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RM1.51
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+2.0%
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TROP (5401)
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18/2/2014
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RM1.24
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ACCUMULATE
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RM1.62
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RM1.30
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+4.8%
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SOP (5126)
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18/2/2014
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RM5.99
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ACCUMULATE
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RM6.96
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RM6.08
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+1.5%
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MPHBCAP (5237)
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19/2/2014
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RM1.78
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ACCUMULATE
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RM2.00
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RM1.87
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+5.0%
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WASEONG (5142)
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19/2/2014
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RM1.99
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ACCUMULATE
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RM2.50
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RM1.95
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-2.1%
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UMWOG (5243)
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20/2/2014
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RM4.39
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BUY
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RM4.80
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RM4.36
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+0.7%
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MUHIBAH (5703)
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20/2/2014
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RM2.64
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SELL
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RM2.30
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RM2.65
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+0.3%
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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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