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FLOWS
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Wednesday, 23 April, 2014
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BUY
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AIRASIA,
IJM, YTL
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SELL
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MISC, SKPETRO,
SPSETIA
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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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AIRASIA (5099)
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23/4/2014
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RM2.30
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BUY
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RM3.10
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The shifting of Airasia to KLIA2 will vastly improve the business for
Airasia especially by the government and business tourist from all around the
world. Currently, AirAsia traffics approximately 22mil passengers a year and
management expect them to increase 10% at the very least following the shift
to KLIA2 which can cater up to 50mil passengers annually. Airasia will also
reap the benefit of the ERL (direct link from KL Sentral) which had deferred
them to other LCC that operates in KLIA. Given that Airasia’s strong
branding, high demands for Low cost flights, improving facilities in KLIA2,
high aircraft utilization rate, we believe that the group will remain
profitable and will continue to sustain its growth in the region. Currently
stock is only trading at 9x FY14 PE and 7.6x FY15 PE which is relatively
cheap compared to regional peers which has approximately 20x PE. Pays 2.6%
div yield. Share price has been trading at the lower range of its trading
band after AirAsia Japan turned sour; we believe that downside is limited and
the undemanding valuation should serve as a justification for a BUY. TP of
RM3.10 based on 10.3x FY15 PE which is the 7 year average for the group.
(RL)
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GADANG (9261)
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23/4/2014
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RM1.84
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Take Profit
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RM1.43 BB
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Share price has done well since our last call
on the 4th of April gaining a whopping 52% over 3 weeks following
the announcement of RAPID. We believe that this is a good opportunity to
start locking in profits as it has achieved our target of RM1.80. While the
prospects of the group remain exciting with 6bn worth of tenderbooks in major
construction projects such as WCE, DASH, TRX, PR1MA etc, we think that the
uncertainty in the regional market and jittery global sentiments will force
investors to switch out of rotational stocks that have done well and move
into a more defensive names come May. Technical indicators are currently at
an overbought position with RSI trending above 86% and are seen declining
showing a slowdown in buying momentum at these levels; MACD turning
downwards. Take profit and Buy back at RM1.43-RM1.50 (61.8% retracement and
50% retracement respectively).
(RL)
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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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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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RM3.04
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-0.7%
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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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RM0.29
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+7.4%
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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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RM2.30
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+0.4%
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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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RM4.38
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-5.9%
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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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RM1.64
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+1.2%
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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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RM2.91
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-0.4%
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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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RM0.495
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2.0%
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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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RM3.08
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+14.0%
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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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RM4.04
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+3.5%
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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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RM1.95
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+2.6%
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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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