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FLOWS
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Monday, 3 March, 2014
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BUY
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SKPETRO,
KNM, SPSETIA
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SELL
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TENAGA, MRCB, TM
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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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COASTAL(5071)
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3/3/2014
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RM4.20
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BUY
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RM4.65
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Share price has retraced 13% from its recent high of RM 4.81 and is
currently trading just above its 25 days SMA. Weakness in the share price was
largely attributed to the recent management’s proposal of 10% private
placement based on issued and paid-up
number of shares of 483.1m with an indicative price of RM
3.81. Fundamentally, Coastal Contract is performing well with its
full-year FY13 net profit of RM 151.6m beating
expectations; underpinned by stronger margins and vessel deliveries. Year to
date orderbook is strong at RM 2.5bn, which includes the
20-year drilling contract worth RM 1.24bn and approximately RM 1.26bn comes
from the shipbuilding segment. The portion attributable to the shipbuilding
is believed to be mostly due by FY14. BUY with a TP of RM
4.65 (after assuming a maximum scenario for the private placement), based on
a target FY15 P/E of 14x.
(KL)
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SUPERMX(7106)
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3/3/2014
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RM2.78
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BUY
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RM3.56
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Share price has dropped 30 cent in just a week time. The decline is
due to its FY13’s earnings failed to meet the market expectations. Supermax’s
4Q13 revenue fell by 32% to RM192m; hit by both lower volume sales and
average selling price (ASP) of nitrile gloves. The lower volume sales were
due to an unfortunate fire incident at its Alor Gajah, Malacca plant leading
to a loss in production output. However, the loss of production is just a
temporary issue as 50% of the production lines impacted by the fire are now
up and running since mid-Jan 2014 and the remaining production lines are
expected to commence by end-Mar 2014. Going forward, growth is expected to be
driven by two new plants, namely Lot 6059 and Lot
6058, which are on track to commission commercial productions by end 1Q14 or
early 2Q14. Lot 6059 and 6058 will have 24 and 16 production lines producing
3.2b and 2.2b pieces of nitrile gloves, respectively, bringing the total
nitrile production capacity from 6.9b (including the 1.4bn in Lot 6070) to
12.3b pieces p.a. or 52% of the total installed capacity. Given the strong
demand for nitrile gloves, SUPERMX is currently facing a two-month oversold
position. The current weakness in the stock price may seem to be a good
opportunity to accumulate the stock. Buy with a TP of RM 3.56 (FY14 PE
of 15x).
(KL)
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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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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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RM1.58
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-0.7%
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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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RM3.03
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1.0%
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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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RM3.30
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+0.6%
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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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RM0.935
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-0.6%
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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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RM2.55
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-4.9%
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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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RM0.375
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+0.0%
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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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RM2.13
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0.0%
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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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RM2.05
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-4.3%
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BARAKAH (7251)
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28/2/2014
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RM1.57
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Trading BUY
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RM1.76
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RM1.54
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-2.0%
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SILKHLD(5078)
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28/2/2014
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RM0.64
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Trading BUY
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RM0.74
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RM0.62
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-3.1%
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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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