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FLOWS
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Tuesday, 29 April, 2014
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BUY
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BAT,
SPSETIA, GENM
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SELL
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MAXIS, TENAGA,
AMBANK
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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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GAMUDA (5398)
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29/4/2014
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RM4.55
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BUY
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RM5.45
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Share price has retraced from a high of RM 4.71 and consolidating at
the RM 4.50 area for the past weeks. Despite the headwinds in the property
sector, Gamuda still expects another record year in FY14, with RM 1.9bn in
projected sales versus the RM 1.75bn it achieved in FY13. In 1HFY14, the
group had already recorded property sales of RM 980m. Currently, the group is
making good progress on Line 1 of the Klang Valley MRT project. As at
end-2QFY14, financial completion of the elevated portion stood at 24%
(vis-Ã -vis 17% three months ago), with the tunneling
portion 34% complete (vs 24% three months ago). Furthermore, Gamuda and
project owner MRT Co are now working on the basis that the RM 25bn Line 2 of
the Klang Valley MRT project has been approved by the Cabinet, and the 50:50
MMC-Gamuda JV has been appointed as the project delivery partner (PDP) for
the elevated portion of Line 2. Gamuda expects the Government to soon
formally announce its approval for Line 2 as well as the appointment of
MMC-Gamuda JV as the PDP for the elevated portion. In a nutshell, the
prospects for the construction sector remain strong as it is believed to be
riding on an extended upcycle, propelled largely by the RM 73bn Klang Valley
MRT project. With Line 1 worth RM 23bn currently under construction and Lines
2 & 3 worth RM 25bn each under planning, this mammoth mega project will
keep players busy until 2021. Gamuda is consider the best proxy to public
infrastructure spending in Malaysia given its dominant role in Line 1 of the
Klang Valley MRT project, and most likely in Lines 2 & 3 as well. Share
price currently trading at 13x FY15 as compared to its historical PE of
20.2x. Buy with a TP of RM 5.45.
(KL)
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SUNWAY (5211)
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29/4/2014
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RM3.15
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BUY
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RM3.50
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Share price has been making a series higher highs and higher lows ever
since coming into the year 2014. The performance of the stock is a remarkable
feat considers the fact that most of property sectors did not perform well
due to the new cooling measures introduced by the government to control the
property market. The uptrend remain intact as the group recent earnings
result beats market expectations with both property development and
construction divisions recorded >20% growth in operating profit. Going
forward, the group is targeting to launch RM 2.3bn (effective: RM 1.7bn)
worth of properties in FY14, with a targeted sales of RM 1.8bn (effective: RM
1.3bn). Key launches include RM300mil worth of offices (167 units) and
service apartments (328 units) in Medini, Sunway Iskandar, sometime in
2QFY14, including 51 retail units for its property investment division. As
for its construction division, the group has set a target of securing
RM2.5bil worth of jobs, including 70% of external projects. As at end-2013,
construction order book replenishment totaled RM 2.16bn, including RM 1.5bn
of external jobs, while outstanding order book stood at RM 3.92bn. Amid the
challenging market environment, Sunway stands out given its diversified
business model that has helped cushion the temporary weakness in the property
market. In terms of valuation, Sunway is trading at a FY14 PE of 12x, which
is lower than its comparable peers of 12x-17x P/E, indicating better
risk-rewards ratio. Buy on Sunway with a TP of RM3.50.
(KL)
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Calls for APRIL Week 3/Week 4 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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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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RM4.05
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+3.8%
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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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RM1.79
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-5.8%
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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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RM2.25
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-2.2%
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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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RM1.82
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+3.2%
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KKB (9466)
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24/4/2014
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RM2.58
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BUY
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RM2.80
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RM2.53
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+2.0%
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PERDANA (7108)
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24/4/2014
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RM1.91
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BUY
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RM2.30
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RM1.89
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-1.1%
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MAYBANK (1155)
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25/4/2014
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RM9.96
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Switch > RHBCAP
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-
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RM9.95
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-0.2%
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PERISAI (0047)
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25/4/2014
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RM1.63
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BUY
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RM1.88
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RM1.59
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-2.5%
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IOIGP (5249)
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28/4/2014
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RM2.69
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BUY
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RM3.40
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RM2.68
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-0.4%
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IGB (1597)
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28/4/2014
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RM2.75
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ACCUMULATE
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RM3.20
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RM2.75
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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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