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FLOWS
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Tuesday, 25 February, 2014
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BUY
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DIGI,
MAXIS, GENTING
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SELL
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SIME, SKPETRO, MISC
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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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GTRONIC (7022)
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25/2/2014
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RM3.28
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ACCUMULATE
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RM4.00
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Group has already lined up their next upcoming high margin product
(the optical interface sensors & multiport that are used in smartphones,
tablets and gaming applications) that will be introduced in 4Q 2013/1Q 2014.
Globetronics has secured a substantial orders (from US, Japan, Europe
clients) to be delivered in 1h of 2014 which will then contribute 60% of the
groups revenue. We continue to like the group for its growth story as well as
its net profit margin that grew from 10% to 14% in FY12 and is expected to
grow to 17% in the next 2-3 years from its new product. In addition to the
group’s strong balance sheet (net cash of RM140mil or RM0.52sens/share),
group also expects a CAGR of 25% growth in net profit averagely for the next
3 years. Valuations seem attractive a 14.4x for FY14, and only 12.5x for
FY15, current dividend yield is still attractive at current price at 5.8% for
the last 12 months and is expected to increase to 7.1% in fy15 when the
earnings from their turnkey product kicks in. Group pays approximately 5.1%
dividend. Share price fell 4% within the last 8 trading days and we believe
that this is a good opportunity to accumulate.
(RL)
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TDM (2054)
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25/2/2014
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RM0.94
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ACCUMULATE
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RM1.50
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Long
term prospect remain in tact with the group steadily planting up its
Indonesian landbank (37,856 hectares) since 2009 and expect to fully plant it
by 2018. While 63% of its plantations are currently below the year of 16
years, the TDM’s management only expects a boost in earnings from FY16/17
where its Indonesia estates will contribute more significantly. This mid-cap
plantation player also has a foothold in the healthcare industry where it
operates 4 private hospitals (Kelana Jaya Medical, Kuantan Medical, Kuala
Terengganu Medical, and Taman Desa Medical ). TDM’s healthcare division (~7%
Pbt) is in the midst of expanding the capacity of the 3 private hospitals as
it plans to double the bed capacity within the next 3 years. Currently
valuations seem attractive as it’s trading at only 14.4x for fy14 and 10.68x
for FY15 vs mid cap sector average of 15x. Group appears to be a good proxy
to the plantation sector as it is cheap and sensitive to the CPO prices with every
MYR100/tonne change would contribute by 8-9% per annum to its earnings.
(RL)
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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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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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RM1.42
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+14.5%
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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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RM6.04
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+0.8%
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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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RM1.90
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+6.7%
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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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RM1.97
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-1.2%
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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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RM4.33
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-1.4%
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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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RM2.58
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-2.3%
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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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RM0.465
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+4.4%
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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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RM2.53
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+8.1%
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KIMLUN (5171)
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24/2/2014
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RM1.59
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ACCUMULATE
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RM1.96
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RM1.59
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0.0%
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TSH (9059)
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24/2/2014
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RM3.00
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ACCUMULATE
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RM3.60
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RM3.00
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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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