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FLOWS
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Thursday, 27 February 2014
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BUY
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GAMUDA,
SKPETRO, PUNCAK
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SELL
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DIGI, GENTING,
MAYBANK
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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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KSL (5038)
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27/2/2014
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RM2.14
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ACCUMULATE
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RM2.80
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KSL - The company registered decrease in profit before taxation for
the current quarter was mainly due to the loss arising from fair value
adjustment of RM9.4 million on investment properties and provision of
deferred taxation for RPGT of approximately RM13 million. Despite this set
back the company still managed to post a profit of RM172m or 44sen/share for
the full year. The Group’s main focus is developing residential and
commercial properties in Johor Bahru, Segamat, Kluang and Muar in the state
of Johor. It has approximately 2,000 acres of land held for current and
future development which are strategically located in the District of Johor
Bahru, Batu Pahat, Kluang, Segamat, Muar, Mersing, Klang and Kuala
Lumpur.Most of the total land held in Johor, are located in the high growth
Iskandar Development Region. Besides, the Group is in the midst of
developing the land held in Klang and is expected to anticipate a gross
development value of RM2.5 billion with five (5) main development phases. In
line with the Group’s confidence in the high-end property market and
improving its margin by changing its product mix, it is embarking on a
premium development in the Golden Triangle. This project will be named Madge
18 and is strategically located at Jalan Madge off Jalan U-Thant, Ampang
Hilir, around the U-Thant Embassy area. Madge 18 is designed to be a
10-storey high-end residence with a potential gross development value of
RM160 million. As part of its strategy to minimize the volatility of its
income stream, it has investment properties including hotel and mall operation.
Buy below RM2.20 as the selling today presents an opportunity to buy in as it
trades at an undemanding 5.5x PE we have an immediate target price of RM2.80
or 6.5x forward PE. Accumulate.
(DN)
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MAYBULK (5077)
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27/2/2014
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RM2.14
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SELL into Strength
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RM1.80
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Maybulk (RM2.14) – Recent
limelight has been focused on the listing of POSH a O&G vessel operator
with a fleet of 29 ships. Recall that the company has an option to sell out
its 21.2% in POSH for a 25% premium over its purchase price, valuing its
stake at RM843m. However with the recent revival of interest in O&G
vessels companies, they will hope to fetch a higher premium. The Dry bulk and
tanker rates have also recovered and the company should now enjoy better
efficiencies after the fleet modernization exercise they have been undergoing
for the past few years. We feel that most of these positives have already
been priced into the stock as its price is +21% YTD vs the KLCI -2%. It is
also currently trading at a premium to its SOP value of around RM2.00. We
advocate a sell into strength with a buy back levels of around RM1.80.
(DN)
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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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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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RM4.25
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-3.2%
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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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RM2.48
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-3.6%
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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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RM0.43
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-3.3%
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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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RM2.35
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+0.4%
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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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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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RM3.15
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-4.0%
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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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RM0.93
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-1.1%
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DRBHICOM (1619)
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26/2/2014
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RM2.68
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ACCUMULATE
on weakness
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RM2.95
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RM2.64
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-1.5%
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IRCB
(2127)
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26/2/2014
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RM0.375
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Trading BUY
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RM0.55
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RM0.38
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+1.3%
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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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