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FLOWS
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Tuesday, 22 April, 2014
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BUY
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PBBANK,
SKPETRO, UMW
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SELL
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CIMB, GENTING, 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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UMWOG(5243)
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22/4/2014
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RM3.90
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ACCUMULATE
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RM4.40
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The
share price has been sliding over the past 2.5 months, from RM4.58 to its
current RM3.90 level, a fall of c15%. The decline, we believe, was due
largely to group’s stretched valuation of c24x FY15 and limited upside
potential. With the decline, it is now trading at a more appealing PE of
20.2x FY15, which is in line with the large cap industry average of 20x.
Management has guided that they will taking delivery of Naga 5 next month, a
month earlier than earlier anticipated & has a contract waiting for it.
In the months ahead, market is also expecting active news-flow on group
clinching their first contracts for Naga 6, Naga 7 & Naga 8. Naga 6 &
7 are slated for delivery in Sept & Dec 2014. We are encouraged that
UMW-OG’s fleet expansion program is progressing as planned and their
aggressive expansion program will position them well to take advantage of the
shortage of Malaysian flagged jack ups as well as high demand for this asset
class in Southeast Asia. Other re-rating catalyst include the undertaking of
earnings accretive M&As. Pullback provides opportunity for a lower entry
point; Accumulate ( TP RM4.40, based on 23x FY15)
(AK)
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YEELEE(5584)
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22/4/2014
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RM1.90
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SELL into Strength
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-
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Share
price has moved up c40% over the past 2 months, largely on the back of strong
earnings recorded ( FY13 core earnings +41% yoy), improving margins ( EBIT
margin of 6.3% in FY13 vs 4.5% & 3.5% in FY 12 & 11) & strong B/S
( net gearing declining to 0.21x in FY13 from 0.3x in FY12 and 0.5x in FY11).
Group was now in a better position to expand its manufacturing division
without affecting dividend payments. Prospects for FY14 remain bright, as net
profit is expected to grow by 6%. However, with the share price run-up, group
is now trading at about PE 10x FY14 and price to book of 1.04x ( from PE of
7.2x and P/Bk of 0.74x), which is closer to its peers ( SKP Resources &
Ajinomoto of c11x) & also the current FBM Small Cap Fwd PE valuations of
11x. Seeing that the discount has narrowed significantly, and with RSI at 79,
we see it fit to take profits; Trim into strength.
(AK)
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Calls for APRIL Week 2/Week 3 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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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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RM4.29
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+12.0%
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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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RM1.17
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+28.5%
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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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RM0.280
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+3.7%
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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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RM4.47
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-3.9%
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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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RM1.63
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+0.6%
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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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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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RM0.50
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1.0%
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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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RM2.86
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+5.9%
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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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