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FLOWS
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Monday, 12 May, 2014
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BUY
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SIME,
MAXIS, SPSETIA
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SELL
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ASTRO, IOICORP,
MAYBANK
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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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MAYBULK (5077)
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12/5/2014
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RM1.80
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BUY
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RM2.23
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Maybulk (RM1.80) – has retraced 20% in less than a month on profit-taking
post the listing of 21.23% associate, POSH, in Singapore to its 61.8%
retracement level of its up move from the low of RM1.52 (in August’13)
to its recent high of RM2.24. It is a low risk entry level
to position for expectations of a rebound in global growth with its
ensuing higher global trade & shipping volume. Generally shipping
analysts and industry captains are of the opinion that rates for bulk
shippers and tankers have bottomed in 1H2013, and analysts have
forecasted an average increase of 43% & 14% for bulk & tanker rates
respectively. Clarkson expects trade growth and vessel supply to be similar
for the first time in 4 years. Bunker costs have also been declining since it
peaked in August’13, in line with crude oil prices which have fallen about
11% since its peak in August and is expected to be lower in 2014 which
is conducive to lower bunker costs. In view of the favourable operating
parameters, Maybulk’s FY2014 results will see drastic improvement
compared to 2013. Its associate, POSH, is also expected to continue to
contribute handsomely with its core activities of providing offshore marine
support to O&G players in the region and the additional 12 vessels that
will be delivered in 2014. Maybulk trades at an attractive p/bk of 0.97x, relatively
cheaper than its 5-year historical p/bk of 1.24x. Shipping analysts expect
shippers to trade above 1.2x p/bk when the shipping environment resumes to
normal, which would value Maybulk at a minimum of RM2.23. Buy
(PT)
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BENALEC (5190)
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12/5/2014
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RM0.965
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TRADING BUY
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RM1.10
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Benalec (RM0.965) - the recent price actions of Benalec are
hinting of potential positive news with the stock taking out its four months
ascending triangle pattern on convincing volume, its SMA50
providing strong support from being a resistance in the last 7 months of
downtrend, and the golden cross on the macd. The company has been
showing traction the last couple of months with land sales of close to RM300m
& coastal reclamation job of RM204m. Benalec is bidding and has
comparative advantage in its tender for the E&O's Penang STP2 project
worth RM1b as it was earlier involved in the land reclamation works of
STP1. In mid-March, Benalec guided that it is in the midst of finalizing the
SPA with 1MY Strategic Oil Terminal S/B for the reclamation/development of
1,000 acres at its Tg Piai concession - its key game changer.
Fundamental valuations are also supportive of the stock at current level with
FY6/15 & FY6/16 PER of 10.4x & 8.0x and FY6/15 & FY6/16 p/bk of
1.06x & 0.96x. Trading Buy
(PT)
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Calls for MAY WEEK 1 / WEEK 2 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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5/5/2014
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RM0.90
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Trading BUY
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RM1.20
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RM0.895
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-0.6%
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HOHUP (5169)
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5/5/2014
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RM1.60
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BUY
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RM2.30
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RM1.47
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-8.2%
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PTARAS (9598)
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6/5/2014
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RM3.81
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ACCUMULATE
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RM4.30
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RM4.05
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+6.2%
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GOB (1147)
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6/5/2014
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RM0.965
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BUY
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RM1.30
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RM0.970
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+0.5%
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INTEGRA (9555)
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7/5/2014
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RM2.11
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BUY
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RM2.53
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RM2.16
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+2.3%
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IJM (3336)
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7/5/2014
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RM6.35
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BUY
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RM6.80
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RM6.34
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+0.2%
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E&O (3417)
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8/5/2014
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RM2.28
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BUY
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RM3.00
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RM2.29
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+0.4%
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SALCON (8567)
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8/5/2014
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RM0.73
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BUY
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RM0.805
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RM0.75
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+2.7%
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PMETAL (8869)
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9/5/2014
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RM3.28
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ACCUMULATE
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RM4.11
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RM3.48
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+6.0%
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CRESBLD (8591)
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9/5/2014
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RM1.51
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ACCUMULATE
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RM1.75
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RM1.50
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-0.7%
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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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