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FLOWS
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Wednesday, 9 April, 2014
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BUY
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BAT,
TENAGA, KLK
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SELL
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SIME, IOICORP, GENM
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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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TM (4863)
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9/4/2014
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RM5.86
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TRADING BUY
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RM6.20
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Share price has retraced from a high of RM 6.20 and has been consolidating
at this level for a week. RSI is neutral at 49%. Recently, Telekom Malaysia
(TM) is acquiring 57% stake in P1 for a total consideration of RM350m which
is expected to be completed by 3Q2014. Subsequent to the acquisition, Green
Packet (GP) and SK Telecom (SKT) will own 30% and 13% respectively. There are
mixed results from the brokerage houses on the proposed acquisition which
explained the recent wild movements in price of the stock. Nevertheless, the
deal is positive in the long run as it enables TM to takeover valuable
wireless spectrum resource, thus enabling the group to offer bundling of
wireless broadband (WBB) with fixed broadband services. This would enlarge
TM’s market to include customers which seek mobility on top of faster speeds
from fiber broadband. Furthermore, TM’s outlook remains bright, being the
major provider of High Speed Broad Band (HSBB) phase 1, it also stands to
benefit from the increased “fiberization”. Apart from this proposed
acquisition, the upcoming newsflows on HSBB phase 2 will act as another
catalyst to further propel TM’s prospect. In essence, Phase 2 of the HSBB
entails widening Internet coverage for more of the population, as well as
increasing speeds in major towns and cities to more rural areas. Trading
buy with the aim of the stock price retesting the high at RM 6.20 level.
(KL)
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DIALOG (7277)
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9/4/2014
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RM3.68
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ACCUMULATE
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RM4.50
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Share price pulled back after creating a new high at RM 3.90. Group
outlook remain compelling as it is the biggest beneficiary of the oil &
gas initiatives under the economic transformation programme (ETP) through its
involvement at the Pengerang terminal, the Balai marginal field and the Bayan
enhanced oil recovery (EOR). Balai is set to deliver this year following the
start of oil production on 6 Nov 2013. Meanwhile, production enhancement
works at Bayan are progressing well, creating a new platform of long-term
income, which is expected to start flowing in FY15. In addition, its’
Pengerang tank terminal projects are shaping up well. Phase 1 is likely to be
operational from 2QCY14. Phase 2 is likely to kick off soon, involving LNG
tank terminals and regasification plants. Phase 3 will likely be a dedicated
tank terminal, accommodating oil majors, refineries and petrochemical
operators operating within the Pengerang area. Apart from its own development
in Pengerang, Dialog is also eyeing EPCC opportunities at Petronas's US$20bn
Refinery and Petrochemical Integrated Development (RAPID) next door. Getting
the green light for the RAPID project is a key re-rating catalyst for the
stock. Accumulate.
(KL)
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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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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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RM0.945
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+2.7%
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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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RM4.20
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+0.9%
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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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RM1.51
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-3.2%
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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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RM4.17
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-0.8%
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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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RM2.37
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-0.9%
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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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RM11.80
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+4.0%
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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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RM1.82
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+0.5%
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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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RM2.12
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-0.5%
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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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