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FLOWS
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Tuesday, 25 March 2014
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BUY
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MISC,
IOICORP, SKPETRO
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SELL
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FGV, AMBANK, UEMS
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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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BENALEC (5190)
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25/3/2014
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RM0.925
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ACCUMULATE
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RM1.15
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The
recent disposal of 128 acres of land in Malacca at RM235m ( disposal gain of
RM 58m ) is one of its largest ever in the state to date. We see this as
further proof of the group’s valuable land concession there. This sale will
provide earnings visibility for the next 2 years. News flow have been
positive for the group lately, especially with the Heads of Agreement
ratification proposed with several of their directors/shareholders to set out
a “global settlement” earlier in the month. With this, Benalec would get much
relief sought - with regards counter legal suits, avoid inherent
complications, uncertainties and time / resources spent in a long drawn
litigation. Over in Johor, management has also recently guided that it is in
the midst of finalizing the SPA with 1MY Strategic Oil Terminal SB for the
development of 1000 acres at its Tg Piai concession. Co is now trading at a
steep 60% discount to its estimated SOP of cRM2.30 & PE of 10.9x for
FY06/15. The longer term outlook of the group remains intact, and we reckon
any concrete developments in Johor & further land sale will likely narrow
the deep discount that it is currently trading at ; Accumulate ( TP RM1.15,
based on 50% disc to estimated SOP).
(AK)
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WASEONG(5142)
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25/3/2014
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RM1.88
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ACCUMULATE
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RM2.00
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The share price of Waseong has underperformed
amongst the O&G names, probably due to project delays & loss of some
major projects that it was vying for. But signs of a turnaround is improving,
as evident in its recent Q4FY13 results. In recent meetings, Management has
guided that the strong Q4FY13 results ( RM24.9m net, vs FY13 RM32.3m ) will
likely be sustainable throughout this year. The O&G & Renewable
Energy( RE) segments are currently progressing well. OB stands at RM1.7b,
with O&G 75% & RE 16%, providing earnings visibility for the next 2-3
year ( OB burn rate of cRM500m a year ). Waseong has a tender book of RM4b (
with O&G makin up c70%) and is well positioned to replenish the OB, as
there is limited competition to its O&G pipe coating business. The new
Plantation segment, will record lower losses going forward as there will be
less hefty start up costs hereon & helped by proceeds of log sales from
land clearing. Co is trading at PE of 14.3x for FY12/14, vs other O&G mid
caps average of c16-18X ; Accumulate.
(AK)
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Calls for MARCH Week 3 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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ARMADA (5210)
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18/3/2014
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RM3.88
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BUY
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RM4.30
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RM3.92
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+1.0%
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CIMB (1023)
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18/3/2014
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RM7.00
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ACCUMULATE
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RM7.70
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RM7.11
(ex)
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+1.5%
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TMCLIFE(0101)
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19/3/2014
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RM0.37
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BUY
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RM0.45
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RM0.375
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+1.3%
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AMBANK (1015)
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19/3/2014
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RM7.11
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Trading BUY
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RM8.05
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RM7.15
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+0.5%
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MITRA (9571)
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20/3/2014
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RM0.55
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ACCUMULATE
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RM0.70
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RM0.59
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+7.2%
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CMMT (5180)
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20/3/2014
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RM1.50
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TRIM
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RM1.30
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RM1.45
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-3.4%
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IJM (3336)
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21/3/2014
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RM5.90
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ACCUMULATE
on weakness
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RM6.75
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RM6.08
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+3.0%
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UEMS (5148)
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21/3/2014
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RM2.15
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ACCUMULATE
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RM2.60
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RM2.19
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+1.8%
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GENTING (3182)
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24/3/2014
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RM9.60
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ACCUMULATE
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RM10.50
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RM9.76
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+1.6%
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KPS (5843)
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24/3/2014
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RM1.63
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ACCUMULATE
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RM2.00
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RM1.61
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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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