|
FLOWS
|
Thursday, 3 April, 2014
|
|||||||||||||
|
BUY
|
SKPETRO,
CMSB, TENAGA
|
|||||||||||||
|
SELL
|
E&O, MMC, DIGI
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
BARAKAH (7251)
|
3/4/2014
|
RM1.56
|
Trading BUY
|
RM2.20
|
||||||||||
|
The share price has consolidated about the
RM1.50 level for the past month. Secured OB stands at RM2.2b which provides
earnings visibility for the next 3 years while group has been actively
involved in bidding for new projects with its current tender book of RM3b,
comprising c70 O&G projects. The Commissioning segment is able to provide
Co with recurring stable earnings. Work orders from its recent Pan-Malaysian
T&I contract will begin from June onwards. The outcome of the Saudi
Aramco’s US1b contract bid (comprising T&I, HUC and pipeline
commissioning works) is expected to be known in early 2Q14. Barakah & its
JV partners are competing with another 2 contenders and stands a fair chance
to win, given its extensive experience in commissioning jobs. A victory in
this bid could re-rate the stock significantly. Co is trading at an
undemanding PE of 12.8x for FY12/15, with a significant catalyst in play ;
Trading Buy.
(AK)
 |
||||||||||||||
|
TAANN(5012)
|
3/4/2014
|
RM4.20
|
ACCUMULATE
|
RM4.80
|
||||||||||
|
Share price has pulled back c5% over the past 3 weeks and
is now showing signs of turning around. We reckon this is a good re-entry
point into Taann as we continue to be positive on the prospects of the timber
sector due to an upcoming log export ban in Myanmar ( expect tropical log
prices to start rising from 2H2014) and stable demand from India & Japan.
The softening MYR/USD rate and rising CPO prices will also drive earnings of
the group. The oil palm estate’s young age profile of 6.5 years driving
robust output 3-year 2013-16 CAGR of 16% is appealing. We also like the group
for its continuous efforts to reduce plywood losses from Tasmania and that
Wilmar’s new CPO purchase policy would only have minimal impact on its medium
term prospects as it plans to complete its peat soil planting in 2014.
Trading at an undemanding 10.9x for FY12/15, with stronger earnings from
Plantation, improving otlook for the timber industry & softening of the
MYR/USD ; Accumulate ( TP RM4.80 based on 12.5x FY15).
(AK)
 |
||||||||||||||
|
|
||||||||||||||
|
Calls for MARCH Week 4 / APRIL Week 1 2014
|
||||||||||||||
|
STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
MHB (5186)
|
27/3/2014
|
RM3.72
|
ACCUMULATE
|
RM4.30
|
RM3.81
|
+2.4%
|
||||||||
|
KKB (9466)
|
27/3/2014
|
RM2.47
|
ACCUMULATE
|
RM2.75
|
RM2.46
|
-0.5%
|
||||||||
|
MSC (5916)
|
28/3/2014
|
RM3.20
|
BUY
|
RM3.80
|
RM3.41
|
+6.5%
|
||||||||
|
SBCCORP(5207)
|
28/3/2014
|
RM1.82
|
BUY
|
RM2.30
|
RM1.88
|
+3.2%
|
||||||||
|
PARAMON (1724)
|
31/3/2014
|
RM1.67
|
BUY
|
RM2.00
|
RM1.65
|
-1.2%
|
||||||||
|
SCOMI (7158)
|
31/3/2014
|
RM0.435
|
ACCUMULATE
|
RM0.645
|
RM0.445
|
+2.2%
|
||||||||
|
DIGI (6947)
|
1/4/2014
|
RM5.39
|
Take profit
|
-
|
RM5.35
|
-0.8%
|
||||||||
|
MMCCORP (2194)
|
1/4/2014
|
RM2.82
|
ACCUMULATE
|
RM3.20
|
RM2.83
|
+0.3%
|
||||||||
|
THHEAVY (7206)
|
2/4/2014
|
RM0.92
|
Trading BUY
|
RM1.05
|
RM0.91
|
-1.1%
|
||||||||
|
GENM (4715)
|
2/4/2014
|
RM4.16
|
ACCUMULATE
|
RM4.60
|
RM4.22
|
+1.4%
|
||||||||
|
HOLD
|
|
|
CONT SELL
|
SELL/ TAKE PROFIT
|
|
CONT BUY
|
STRONG BUY
|
