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FLOWS
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Tuesday, 4th March 2014
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BUY
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SKPETRO,
IOICORP, CIMB
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SELL
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AXIATA, TENAGA, 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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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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Stock has corrected 20% over the last 5 days, starting with
profit-taking of O&G-related counters and followed with a
lower-than-expected 4QFY13 reporting season due to an one-off
event of cost overruns from its first subsea project which brought the
price to an attractive valuation of PER 11.1x & 8.5x for FY14 &
FY15 respectively. This is lower than the average valuation of small &
mid-caps in the O&G sector of 15.8x in FY14, 11.7x in FY15, and Daya’s
5-year average historical PER valuation of 18.7x. It has a
record order book of RM1.5bn that drives the company's 3-year EPS CAGR
of 29%. Management mentioned the possibility of deploying their
vessel SD1 to Brazil at a higher charter rate of USD130,00/day vs
USD102,000/day to Technip Norge. This however depends on vessel availability
as Technip is also negotiating to extend the charter period to >210 days
from 100-175 days. Management also guided that they have secured the
charter of SD3 which is currently under construction and this vessel
construction may be expedited for the Brazilian contract. Additional potential
driver would be the successful acquisition of a 51% stake in SD2 vessel which
the company is currently negotiating. Accumulate as Daya is likely to find
support near its placement price of RM0.345.
(PT)
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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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Since hitting the high of RM1.05 on 20/2/14,
the stock has pulled back 13% to the current level which is close to support
at RM0.90 to resume accumulation. Upstream Online reported that THHeavy is
the sole bidder for the charter of a FPSO to the JX Nippon Layang Field
for 7 years with an option for another 3 years. This contract is
conservatively valued to be more than RM1bn. Having recently doubled the
capacity of its Pulau Indah fabrication yard, THHeavy is a position to
bid for bigger fabrication jobs with its JV partner, McDermott, with a total
outstanding tender bid of RM9bn. It was recently reported in the media
that the THHeavy & McDermott JV is one of the 3 bidders
shortlisted for of their bids, an EPCC contract from the Baronia gas
project worth up to RM1.5bn. THHeavy has a current order book of RM400m,
a record high for the company since it exits from PN17 in 2011 and it trades
at FY15 PER of 11.1x. Accumulate
(PT)
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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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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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RM3.23
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-1.6%
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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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RM0.93
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-1.2%
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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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RM2.48
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-7.5%
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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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RM2.11
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+1.5%
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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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RM1.52
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-3.2%
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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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RM0.55
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-14.1%
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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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RM4.20
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0.0%
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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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RM2.84
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+2.1%
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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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