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FLOWS
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Monday, 14 April, 2014
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BUY
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KNM,
MISC, DIALOG
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SELL
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E&O, GASMSIA,
IJM
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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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SKPETRO (5218)
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14/4/2014
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RM4.35
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BUY
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RM4.80
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Share price fell 13% from a high of RM4.81 over
the past 6 days before closing at the strong support of RM4.33 (61.8%
retracement) at the bell on Friday. We believe that the stock is widely
oversold and is poised for a technical bounce following the announcement of
Seadrill’s placement of 230mil shares at RM4.30. Nevertheless, group’s
fundamentals are still intact with a robust order book of 25bn pegged with a
3 year EPS CAGR of 35%. Moving forward the group is currently working on an
RSC with Petronas’ Vestigo while actively searching for other opportunities
to JV with other co.s in Africa, ME and Brazil as well as locally. Valuations
stood at 16.6x for FY15 and 14.6x for FY16 which is relatively cheap than
other big cap players in the region. Share price has limited downside and is
currently trading at attractive valuation. BUY.
(RL)
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ASTRO (6399)
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14/4/2014
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RM3.35
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Sell Into Strength
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-
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Share price has done well
gaining 12% in the last 1 month and has consolidated around these levels; we
believe it’s wise to start taking profit as the geographical overhang,
looming implementation of GST next year as well as the lack in catalysts will
continue to suppress the price. Moving forward, group’s margin will be lower
as well due to the higher content cost (EPL, ESPN, HD Starsports, etc.)
although the occurrence of the FIFA worldcup will help boost ADEX. Astro is
currently trading at hefty valuations of 36x PE, offers single digit CAGR
growth with a dividend payout of 2.1%. We suggest a sell into strength and a
switching to MEDIAC (RM0.94) which offers a 6% dividend yield and trades at a
single digit PE multiple; and or STAR (RM2.41) which is the only
Syariah compliant media stock in the market.
(RL)
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Calls for APRIL Week 1/ Week 2 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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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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RM2.31
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-3.4%
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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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RM11.90
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+4.9%
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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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RM1.80
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-0.6%
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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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RM5.91
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+0.8%
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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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RM3.59
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-2.5%
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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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RM2.90
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+16.0%
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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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RM2.25
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0.0%
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MUDAJYA (5085)
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11/4/2014
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RM2.83
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BUY
|
RM3.56
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RM2.80
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-1.1%
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HSL (6238)
|
11/4/2014
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RM1.80
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ACCUMULATE
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RM2.50
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RM1.80
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0.0%
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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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