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FLOWS
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Monday, 19 May, 2014
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BUY
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ASTRO,
SIME, SKPETRO
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SELL
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DIGI,
MAYBANK,IOICORP
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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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YINSON (7293)
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19/5/2014
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RM4.90
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BUY
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RM5.50
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The current sell down from the announcement
of the rights issue presents an opportunity to position into the top 6 global
FPSO players. Gearing will be substantially reduced from 2x to 0.4x by end
FY2015. Further re rating catalyst could come from its rationalization
program of FOP assets to be redeployed in more lucrative areas of Africa and
Asia. Valuations are compelling at 16.5x 2015 and 13.9x 2016 PEs. The trading
of the rights to the rights beginning 19th May could offer a cheaper
alternative as historically trades at a slight discount. Buy with a short
term target of RM5.50
(DN)
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IOICORP (1961)
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19/5/2014
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RM5.30
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TAKE PROFIT
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RM4.90
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Price has recently surged to
a new multi year high surpassing most consensus target prices of RM5.15. At
this level the stock is trading at its extended PE valuation of 23x 2015 vs
historical average of 16.6x. 2H
results is expected to be lower with the completion of the relisting of its
property arm in Dec 2013 plus weaker margins in the oleochemical division due
to higher raw material prices. The company is currently undergoing an
exercise to repurchase its USD notes and likely financing it via sukuk
products in an effort to be Syariah compliant. We advocate a take profit stance with a buy
back level below RM4.90
(DN)
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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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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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RM3.55
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+8.2%
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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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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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RM1.10
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+13.9%
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WPRTS (5246)
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14/5/2014
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RM2.85
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SELL
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-
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RM2.75
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+3.6%
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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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RM3.48
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+3.5%
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OCK (0172)
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15/5/2014
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RM1.42
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TRADING BUY
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RM1.70
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RM1.45
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+2.1%
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TDM (2054)
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15/5/2014
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RM1.00
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TRADING BUY
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RM1.20
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RM0.98
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-2.00%
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SPSETIA (8664)
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16/5/2014
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RM2.97
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ACCUMULATE
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RM3.50
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RM2.96
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-0.4%
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PRESBHD (5204)
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16/5/2014
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RM1.91
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ACCUMULATE
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RM 2.20
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RM1.96
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+2.6%
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Given that our call initiated on the 12 MAY 2014 to buy BENALEC (5190)
has achieved our target of RM1.10,
we advocate a take
profit on the stock.
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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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