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FLOWS
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Tuesday, 4 February, 2014
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BUY
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TENAGA,
GENTING, CIMB
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SELL
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SIME, SKPETRO,
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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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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Cypark (RM2.16)
- has corrected by 18.5% in three weeks from a high of RM2.56 to the current
oversold level of RM2.16 with RSI of 30%. This is also near to its 50%
retracement of its rally from RM1.69 to RM2.61 in calendar 4Q'2013. It is
currently trading at attractive valuations with PER of 7.2x & 6.0x for
FY14 & FY15 coupled with eps growth rates of more than 30% for the
next 2 FYs due to its renewable energy division which has increased its
export capacity to Tenaga by more than 3x in FY13 and is expected to increase
its capacity further in FY14. The Malaysian Government Green Energy Policy
plans to increase generation capacity from RE sources to 5-6% of total
generation capacity by 2015 from 2% currently. Cypark has comparable
advantage to secure additional RE quota for future growth because of its
track record and first-mover advantage. Its p/bk of 1.79x
also compares favourably against its historical average of 2.45x. The
current weakness in the broad market is an opportunity to accumulate the
stock.
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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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Alam (RM1.44) -
is consolidating in an ascending triangle pattern since July'13, with the
current downwward move a potential final leg of a 5-wave
triangle consolidation. It is at the lower end of its trading range
which provides a lower risk entry level for the stock. Fundamentally, Alam is
trading at a discount compared to its mid and small cap peers with FY14 PER
& p/bk of 10.7x & 1.6x versus its peers’ FY14 average PER &
p/bk of 13.5x & 2.4x. Alam has an orderbook of RM2b which is
equivalent to 4x its FY12 turnover in an industry that is assured of growth
for the next 2-3 years, and it is a well-established player in its
sector of operations. In addition, Alam is also tipped to be a front runner
for RM1.2b – RM1.5b of contracts for the supply of underwater services. These
contracts were previously awarded to Offshore Works Group and is currently in
financial distress. Start accumulation.
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Calls for JAN week 3/Week 4 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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BARAKAH (7251)
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23/1/2014
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RM1.70
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Trading SELL
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RM1.47
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RM1.75
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+2.9%
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MUDAJYA (5085)
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23/1/2014
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RM2.74
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Trading BUY
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RM3.34
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RM2.62
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-4.4%
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AIRPORT (5014)
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24/1/2014
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RM8.90
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ACCUMULATE
on weakness
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RM10.00
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RM8.46
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-5.0%
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PERDANA (7108)
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24/1/2014
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RM1.69
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ACCUMULATE
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RM2.00
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RM1.66
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-1.8%
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CIMB (1023)
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27/1/2014
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RM6.90
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Buy on Weakness
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RM7.40
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RM6.92
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-0.2%
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IOIPG (5249)
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27/1/2014
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RM2.85
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ACCUMULATE
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RM3.30
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RM2.70
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-5.3%
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SURIA (6521)
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28/1/2014
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RM2.25
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ACCUMULATE
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RM2.94
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RM2.37
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+5.3%
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PADINI (7052)
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28/1/2014
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RM1.61
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ACCUMULATE
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RM1.90
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RM1.60
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-0.6%
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SKPETRO (5218)
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29/1/2014
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RM4.31
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ACCUMULATE
on weakness
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RM4.90
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RM4.39
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+1.8%
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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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RM4.05
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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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