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FLOWS
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Friday, 7 March, 2014
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BUY
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TM,
IOICORP, CIMB
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SELL
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SKPETRO, PERDANA,
SIME
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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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GAMUDA (5398)
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7/3/2014
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RM4.62
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BUY
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RM5.20
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Gamuda (RM4.62) - has broken up from its recent
resistance of RM4.60/61 level and poised to challenge its weekly triangle
pattern resistance of RM4.63/65. This triangle has a measuring objective of
RM0.70 from its breakout point. With the signing of the MOU between the state
& the Federal government, the takeover of the water concessionaires will
proceed amicably as the major shareholders cum managements have a good
relationship with the Federal government, hence abating the fear of forceful
takeovers which in the first place is misplaced as Malaysia does not have history
for such actions, and it may jeopardise FDI which the country badly needs in
the current fiscal austerity environment. Meanwhile, Gamuda remains the
sole contractor with expertise & machinery for MRT tunnelling,
giving them considerable advantage for the bidding of the RM25b MRT Line 2
project where tunnelling portion alone is estimated at RM10b. Cabinet
approval is expected to be in 1H14 which will be a key catalyst for Gamuda.
It is also trading at attractive valuations relative to historical PER of 20.2x
with PER of 13.4x for FY15 and earnings growth of 14% for the next 2 years.
Buy
(PT/LJN)
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MEDIAC (5090)
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7/3/2014
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RM0.91
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ACCUMULATE
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RM1.05
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Mediac (RM0.91) – is trading off its recent low of
RM0.88 and having consolidated for the last 2 months is now technically
attractive with its macd poised to cut upwards. Mediac’s valuation at forward
PER of 9.0x PER is comparatively cheaper compared to Star & Media Prima
which trades around 11.5x. In times of volatility in emerging market asset prices,
Mediac provides an attractive shelter with a dividend yield of 6.45%. Its
printing plant in Sabah is slated to commence printing in 1Q14 and management
is confident of capturing a substantial market share of the Sabah Chinese
newspaper segment with its strong newspaper content. The HK property market
has shown emerging signs of recovery which bodes well for Mediac as property
advertising accounts for the bulk of advertising revenue. Accumulate
(PT/LJN)
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Given that our call initiated on the 3 March 2014 to buy Coastal
(5071) has achieved our target of RM4.65,
we advocate a take
profit on the stock.
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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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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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RM1.55
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-1.3%
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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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RM0.635
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-0.8%
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COASTAL(5071)
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3/3/2014
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RM4.20
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TAKE PROFIT
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RM4.65
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RM4.74
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+12.8%
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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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RM2.82
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+1.4%
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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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RM0.94
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+2.7%
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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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RM1.86
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-0.0%
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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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RM2.60
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+6.9%
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BRAHIMS (9474)
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6/3/2014
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RM2.44
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BUY
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RM3.04
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RM2.15
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+0.4%
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PANTECH (5125)
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6/3/2014
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RM0.91
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ACCUMULATE
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RM1.10
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RM2.09
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-2.4%
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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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