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FLOWS
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Tuesday, 8 April, 2014
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BUY
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TENAGA,
SKPETRO, DIALOG
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SELL
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CIMB, MISC, DIGI
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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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LBS (5789)
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8/4/2014
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RM1.81
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BUY
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RM2.20
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Stock has consolidated between the RM150-RM1.80 levels for the past
six months but we feel that the company is set to break out of its range on
the back of a stronger balance sheet allowing it to finally monetize its
substantial land bank Its domestic land bank totals 2037 ac of which 524 ac
is in Johor. It also still owns 60% of Zhuhai International circuit which
sits on 264 ac in Zhuhai. It has also been busy replenishing its land bank
with the acquisition of two pieces of 4.32 acre 99-year leasehold land
from the Employees Provident Fund for RM71.82 million in Johor. The mixed
development will be built on lands are contiguous to LBS existing piece
constructed on total area of about 5.5 acres with a GDV of RM2bn spanning 8
years. The company is confident of
achieving RM1 billion in sales this year, compared to RM620 million in 2013,
with projects worth RM3.8 billion scheduled for launch, in the next two
years. The aggressive launches should translate to valuation of 9x PE 2015
and 7x 2016. We expect the rerating process to value the company at around
RM2.20 or a 20% immediate upside.
(DN)
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TGUAN (7034)
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8/4/2014
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RM2.13
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BUY
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RM2.70
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The RM40m expansion of its Sg Petani plant for its industrial
packaging plant should begin to reap rewards for the company with its Output
increased by 10% to 132k tns/year. The main driver for its top line remains
its stretch film which accounts for 65% of total revenue. The product is
exported to Japan.
Australia, NZ, Middle East
and Europe for the F&B sector. It is
currently working on environmentally friendly products to cater for the
growing demand. The switch to higher value products will continue to enhance
its margins. Trading at current year PE of 8x vs similar companies Scientex
9x and Daibochi 15x, we expect a rerating closer to 10x PE or a target price
of RM2.70.
(DN)
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Calls for APRIL Week 1 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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DIGI (6947)
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1/4/2014
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RM5.39
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Take profit
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-
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RM5.35
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-0.8%
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MMCCORP (2194)
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1/4/2014
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RM2.82
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ACCUMULATE
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RM3.20
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RM2.85
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+1.0%
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THHEAVY (7206)
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2/4/2014
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RM0.92
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Trading BUY
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RM1.05
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RM0.925
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+0.5%
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GENM (4715)
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2/4/2014
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RM4.16
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ACCUMULATE
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RM4.60
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RM4.24
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+1.9%
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BARAKAH (7251)
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3/4/2014
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RM1.56
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Trading BUY
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RM2.20
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RM1.52
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-2.6%
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TAANN (5012)
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3/4/2014
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RM4.20
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ACCUMULATE
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RM4.80
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RM4.16
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-1.0%
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PANTECH (5125)
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4/4/2014
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RM0.895
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BUY
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RM1.26
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RM0.95
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+6.1%
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GADANG (9261)
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4/4/2014
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RM1.21
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ACCUMULATE
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RM1.80
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RM1.27
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+4.9%
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AIRASIA (5099)
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7/4/2014
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RM2.39
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BUY
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RM2.77
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RM2.39
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0.0%
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TENAGA (5347)
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7/4/2014
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RM11.34
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ACCUMULATE
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RM12.30
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RM11.68
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+2.9%
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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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