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FLOWS
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Wednesday, 26 March, 2014
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BUY
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SKPETRO,
GENM, AMBANK
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SELL
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CMSB, SIME, 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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HOHUP (5169)
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26/3/2014
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RM1.49
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ACCUMULATE
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RM2.00
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HOHUP (RM1.49) – group’s fundamental has been
improving following its submission for an earlier upliftment of its PN17
status (by the next 2Q). We believe that the group’s turnaround story may
produce a huge opportunity for a multibagger as it plans to bank on its crown
jewel in Bukit Jalil (60acre land) to materialize. 50 acres of the said land
has been committed to a JV with Malton whereby Ho Hup will receive 18% of the
total project GDV (RM4bn). The project consists of Pavilion 2 shopping mall,
retail shops and residential unit and will be built over 10 years from 2015.
Hohup’s current construction orderbook stood at RM400mil with a mix of jobs
in Iraq as well as locally. The group also plans to replenish its orderbook
by bidding for RAPID and IPP earthworks projects in the near future. Hohup’s
balance sheet improved recently after it listed its rights warrants and RCPS
which turned the company into a net cash position (RM18mil). Currently, stock
is only trading at a valuation of 5.5x PE for FY14. Share price trades in a
tight band between RM1.43 – RM1.55. We think this is a good chance to ACCUMULATE
the stock ahead of the upliftment of its status.
(RL)
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PERDANA (7108)
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26/3/2014
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RM1.89
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ACCUMULATE
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RM2.50
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PERDANA (RM1.89) - We continue to like Perdana’s young fleet of OSV
averaging less than 4 years of age where 16 of them are currently operational
with 85% utilization. Group’s orderbook stood at RM1.4bn as their medium to
long term prospects remain stable on the back of contracts that will utilize
atleast 10 of its vessels till 2018-2019. The group’s is expected to surge in
FY15 (75% from FY2013) where earnings from vessels charted to Dayang will be
recognized for the full year. The group’s expansion of its fleet sees 2
more vessels to be delivered (Sometime late 1Q & 3Q of CY14). In
the near term, Perdana is bidding for Shell EOR job (St Joseph’s) which is
expected to be awarded by this April 2014. Management sees the 14 oilfields
as an opportunity as these EOR projects (by Petronas and Shell) will see
spending for RM36 billion (over 30 years). At Current price, stock is trading at only 13.6x
for FY14 and 12x for FY15. ACCUMULATE both Perdana and Perdana-wa.
(RL)
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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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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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RM0.37
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0.0%
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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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RM0.58
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+5.4%
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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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RM6.12
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+3.7%
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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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RM2.18
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+1.3%
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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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RM9.69
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+0.9%
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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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RM1.58
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-3.1%
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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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RM0.92
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-0.6%
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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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RM1.89
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+0.5%
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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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