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FLOWS
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Monday, 21 April, 2014
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BUY
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UEMS,
SKPETRO, AXIATA
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SELL
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SPSETIA, TENAGA,
ASTRO
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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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MTDACPI (5924)
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21/4/2014
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RM0.505
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Trading BUY
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RM0.80
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The volume has shot up significantly this past week and
the weekly macd technical indicator has started to confirm the daily
macd buy signal. Since its peak in 2000 at RM4.00, MTDACPI has been
correcting and later consolidating for the past 13 years without retracing
any of the technical rebound objectives. From July'13, its price
chart has formed a symmetrical triangle pattern
and the current price actions are flashing early signs of a
breakout from this triangle. Fundamentally, recent
quarterly results showed that MTDACPI has turned around from the
lean contract years and losses incurred from overseas jobs. These legacy low
margin overseas contracts have been completed and substantially provided
for. Now the company has an outstanding order book of RM845m (3.3x of FY13’s revenue), of which a minimum
of 80% are secured locally which carries lower execution risk with the bulk
of them from the Klang Valley MRT project where the company has
expertise from their years of supplying concrete construction products
for infrastructure projects. With its forte in concrete infrastructure
products, the company is in good stead to secure the many infrastructure
contracts that the government will tender under the ETP programme. Trading
Buy.
(PT)
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FABER (1368)
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21/4/2014
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RM2.70
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BUY
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RM3.13
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Faber (RM2,70) - just announced over the weekend that it
has signed a share sale agreement with UEM Group to purchase 100% Propel for
RM500m (via Rm250m in cash & shares - 125m shares @ RM2 per share)
and 100% OGB for RM651m (via 325.5m share @ RM2 per share). In addition to
their cash cow business from the healthcare services concession for Malaysian
hospitals, Faber is adding the business of asset & facility management,
e.g. concessions for the maintenance of highways through these acquisitions.
These acquisitions are earnings accretive as they are acquired at historical
PER of 8.9x & 9.6x, relative cheaper than Faber's current historical PER
of 16.9x. The proforma FY13 PER would be reduced to 12.1x post acquisitions.
In addition, with less volatility & better predictability in
earnings & income growth from these concession businesses,
there could be a rerating of the stock especially with dividend yield
increasing to more than 4%, given the low capex requirements of these type of
activities. Buy
(PT)
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Calls for APRIL Week 2/Week 32014
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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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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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RM4.36
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-0.2%
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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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RM3.30
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-1.5%
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NAIM (5073)
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15/4/2014
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RM3.83
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BUY
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RM4.40
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RM4.14
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+8.0%
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GOB (1147)
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15/4/2014
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RM0.91
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BUY
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RM1.18
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RM1.15
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+27.7%
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CRESNDO (6718)
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16/4/2014
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RM3.06
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BUY
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RM3.60
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RM3.07
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+0.3%
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TIME (4456)
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16/4/2014
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RM0.27
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Trading BUY
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RM0.38
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RM0.285
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+5.5%
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MAHSING (8583)
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17/4/2014
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RM2.29
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Accumulate
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RM2.69
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RM2.28
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-0.5%
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TIMECOM (5031)
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17/4/2014
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RM4.65
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SELL
into Strength
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RM4.20
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RM4.49
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-3.5%
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MRCB (1651)
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18/4/2014
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RM1.62
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BUY
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RM2.20
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RM1.65
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+1.8%
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SPSETIA (8664)
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18/4/2014
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RM2.92
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Trading BUY
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RM3.20
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RM2.92
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0.0%
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Given that our call initiated on the 15 April 2014 to buy GOB (1147) has
achieved our target of RM1.18,
we advocate a take
profit on the stock.
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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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