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FLOWS
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Friday, 11 April, 2014
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BUY
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SKPETRO,
IHH, TENAGA
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SELL
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DIGI, PCHEM, RHBCAP
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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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MUDAJYA (5085)
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11/4/2014
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RM2.83
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BUY
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RM3.56
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The
share price has been hovering between RM2.60-2.80 for the past 2.5 months.
Interest in the stock has been limited, largely due to its OB replenishment
which was rather quiet with no new awards in 2013 as it was said to be
conserving resources for more sizeable higher margin jobs. However, news-flow
of late may renew interest. 1MDB has been rumored to be the winning bidder
for the 2000MW Project 3B power plant ( if true, Mudajaya stands to be on the
forefront of the civil works worth RM2b as it has been supporting the 1MDB
bid and good track record). The winning bidder for the Project 3B will be
announced soon. Local media also reported recently that the RM2b job to build
the 14.9km Kinrara-Damansara Expressway (Kidex) is now a 2 horse race between
Mudajaya & Bina Puri Holdings. Co has a good chance of securing the project
due to its good record in highway construction, especially elevated highways
(Kidex is a fully elevated expressway & is likely to be awarded in
2H14). Securing both Kidex & jobs from 1MDB could potentially bring
OB from RM1b currently to cRM4b. Valuation is undemanding at 7.9x for FY12/15
with significant short term catalyst; Buy on weakness (TP RM3.56 based on PE
10x FY15).
(AK)
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HSL (6238)
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11/4/2014
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RM1.80
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ACCUMULATE
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RM2.50
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Interest in the stock has been picking up the past
month from the recent low of RM1.65. Group is trading at an undemanding PE
10x FY12/15 and 25% discount to SOP of cRM2.48. Prospects for the
construction sector in Sarawak remains strong, underpinned by infrastructure
works from the 3 main initiatives – SCORE, urbanization ( flood mitigation,
waste management) & rural development ( roads, water supply, housing).
HSL will continue to benefit from the infrastructure developments from these.
Potential wins from water related jobs amount to cRM1.3b, while other potenial
major jobs ( Balingian power plant, Mukah new airport, halal hub in Tg Manis
) amounts to c RM450m. We also like group for its earnings visibility, strong
B/S (RM200m cash/near cash & being debt free), high margins ( given
limited competition from only a small pool of UPK contractors ). An excellent
proxy to Sarawak state’s development agenda; Accumulate
(AK)
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Calls for APRIL Week 1/ Week 22014
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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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PANTECH (5125)
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4/4/2014
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RM0.895
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BUY
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RM1.26
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RM1.00
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+11.7%
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GADANG (9261)
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4/4/2014
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RM1.21
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ACCUMULATE
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RM1.80
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RM1.41
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+17.3%
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AIRASIA (5099)
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7/4/2014
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RM2.39
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BUY
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RM2.77
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RM2.30
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-3.8%
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TENAGA (5347)
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7/4/2014
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RM11.34
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ACCUMULATE
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RM12.30
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RM11.92
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+5.1%
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LBS (5789)
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8/4/2014
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RM1.81
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BUY
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RM2.20
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RM1.84
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+1.6%
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TGUAN (7034)
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8/4/2014
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RM2.13
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BUY
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RM2.70
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RM2.10
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-1.5%
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TM (4863)
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9/4/2014
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RM5.86
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TRADING BUY
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RM6.20
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RM5.88
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+0.3%
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DIALOG (7277)
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9/4/2014
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RM3.68
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ACCUMULATE
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RM4.50
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RM3.69
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+0.2%
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PMETAL (8869)
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10/4/2014
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RM2.50
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BUY
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RM3.10
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RM2.70
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+8.0%
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WCT (9679)
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10/4/2014
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RM2.25
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TRADING BUY
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RM2.50
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RM2.30
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+2.2%
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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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