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FLOWS
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Tuesday, 14 May 2014
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BUY
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BENALEC,
IOICORP, TM
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SELL
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DIGI, ASTRO, SPSETIA
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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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WPRTS (5246)
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14/5/2014
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RM2.85
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TRIM
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-
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Following
the release of its Q1FY14 results on May 5 (which was in line), the
share price has jumped c13% over the past week. We deem this sharp rise
overdone as one of the reasons why the Q1 Y-O-Y result was stronger was due
to the lower effective tax rate (17% for Q1FY14 vs 25% for Q1FY13). Another
possible reason for the jump was that Wesport has said that it may seek
tariff hikes from the Port Klang Authority. Although management has tried to
reassure that the potential impact of the P3 alliance members rerouting their
Asia-Europe/Mediterranean port calls by 2H2014 was minimal, the threat still
exist. Note that the P3 alliance has yet to receive approval from China &
Korea and that their intention remain unknown (target date for final approval
would be in May). At current level, group is now trading at FY14 PE of 20x, which
is at a premium to the peer averages of c15x ( although premium partly
justifiable given its status as the only listed transshipment port in Asean,
high EBITDA margin of 50% & dividend yield of 4% ). RSI at 91, we see the
positives have been factored in while uncertainties remain, & consider
this price spike an opportunity to TRIM.
(AK)
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FAVCO (7229)
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14/5/2014
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RM3.36
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TRADING BUY
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RM3.70
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The share price has retreated c13% over the past
month as the market consolidated. We see this a good opportunity to buy into
the stock. It recently secured orders for a total of 9 cranes, lifting it’s
YTD new orders to RM186m. OB stands at RM1.28b, and is estimated that 98% of
the OB is made up of offshore O&G cranes. We believe that demand for offshore
drilling rigs will remain strong, fuelling orders for more offshore cranes.
The stock also offers a decent dividend yield of c4% for FY14/15 and is
currently trading at 9.9x for FY14, below the 11x for those of its O&G
small to mid cap peers; Trading Buy ( TP RM3.70 based on 11x FY14 EPS).
(AK)
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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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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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RM2.20
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+4.2%
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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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RM6.28
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+1.2%
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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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RM0.745
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+2.0%
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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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RM3.54
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+7.9%
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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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RM1.51
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0.0%
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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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RM1.85
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+2.7%
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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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RM0.98
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+1.5%
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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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