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FLOWS
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Wednesday, 5 March, 2014
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BUY
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IOICORP,
SKPETRO, DAYANG
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SELL
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DIGI, UOADEV, MISC
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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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HUAYANG (5062)
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5/3/2014
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RM1.86
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ACCUMULATE
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RM2.38
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Most
property developers are trading close to trough valuations, being weighed
down by the slew of bad news for the sector, implying that most negatives may
have already been priced in. We also expect sentiment to recover in 2H2014,
especially on the back of demand due to the pre-GST buying pressure and pent
up demand given that new launches have been lacking over the last few months.
On the back of this, Huayang should do well, given its prospect in the
affordable housing segment which is expected to remain strong. Group is
guiding for FY14 & FY15 sales estimates of RM0.6b & RM0.77b (for YTD
2013, group has achieved RM0.58b vs Target of RM6b). We expect its 4QFY14
numbers to come in stronger, underpinned by new sales & unbilled sales of
RM830m. They also guided for higher dividend, suggesting that the group would
be comfortable with a higher payout ratio, implying dividend yields of c6-7%
for FY14 & 15. The net gearing had hit a high of 0.7x following
their land acquisitions in Puchong & Seri Kembangan, but it’s comforting
to know that there would not be any more land banking in the near term.
Huayang has sufficient GDV of cRM4b to sustain their growth for the next 3-4
years. Trading at just 4.6x for FY03/15 PE, Accumulate ( TP RM2.38 based on
6x FY15).
(AK)
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SURIA (6521)
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5/3/2014
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RM2.43
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ACCUMULATE
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RM3.00
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Share
price has consolidated around the RM2.40 level for the past month, after
retreating from its recent high of RM2.75 in early Dec 2013. Group recently
delivered an impressive 4QFY13 results which exceeded expectations. The
strong performance was driven by its port operations which continue to gain
from efficiency improvement, turnaround of its logistics & bunkering
division and strong revenue growth from the ferry terminal division. The
impending launch of the Jesselton Quay project remains a key near term
catalyst. Despite the strong cash flow from port operations and strong
earnings growth from the property division, Suria is currently trading at an
unjustifiable low FY14 PE & P/B valuations of 10.6x and 0.8x
respectively. It is amongst the cheapest port operator compared to others
which are trading at a PE range of 13-21x. Group also has a dividend payout
policy of 35%, implying a 3.1% yield for FY13. Accumulate for improving
operations & cheap valuation ( TP RM3, on 13x FY14)
(AK)
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Calls for FEB Week 4/ MARCH Week 1 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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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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RM2.46
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-8.3%
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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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RM0.37
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-1.4%
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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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RM2.10
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-1.9%
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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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RM2.06
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-3.8%
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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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RM1.58
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+0.6%
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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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RM0.615
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-4.0%
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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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RM4.33
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+3.0%
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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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RM2.80
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+0.7%
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DAYA (0091)
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4/3/2014
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RM0.365
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ACCUMULATE
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RM0.45
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RM0.355
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-2.8%
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THHEAVY (7206)
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4/3/2014
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RM0.915
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ACCUMULATE
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RM1.10
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RM0.945
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+3.2%
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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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