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FLOWS
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Wednesday, 21 May, 2014
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BUY
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AIRASIA,
TENAGA, DIGI
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SELL
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MEDIA, UMW, GAMUDA
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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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SKPETRO (5218)
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21/5/2014
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RM4.24
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ACCUMULATE
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RM5.57
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Share
price has been consolidated at these level for quite some time and it seems
to be a very strong support level. Just recently, the Group has announced
that it had secured 5 new contracts which include one drilling contract,
three offshore construction and subsea services contracts and one
fabrication, hook-up and commissioning contract worth a cumulative USD312m
(RM1.01b). These new wins bump its order book to RM28b (double that from a
year ago). The near term catalyst for the company would be the new campaign
for Pan-Malaysia Transport and Installation (T&I) contract, kick-start
two Brazilian pipe lay-support vessels (PLSV), and the account for Newfield’s
earnings in CY14. Moreover, the stock currently trades at CY14-15 PER of
18.7-16.0x which is still attractive as compare to other heavyweights such as
UMW-O&G that trades at CY14-15 PER of 30.4-18.9x. The current weakness in
the share price provides investors an opportunity to accumulate one of the
leaders in the local O&G industry. TP of RM5.57 based on a CY15 EPS of
26.5 cent and target PER of 22x. (KL)
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AXIATA (6888)
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21/5/2014
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RM6.90
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Take Profit
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RM2.25
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Share price has moved up from the
recent low of RM6.38 and hit a high of RM7.01 with RSI showing oversold level
at 83%. It is believed that the stock has achieved its upside in the near term
as the share price has reached if not exceeded most of the houses’ target
price. Fundamentally, Axiata’s
FY14 earnings growth
outlook remains cloudy due
to XL’s continued
challenges in monetising data and XL’s earnings dilution
following its acquisition of Axis. While the Axis acquisition is positive for
XL and Axiata in the long run, meaningful earnings recovery for the Group
would only be expected by FY15. Furthermore, there is a lack of re-rating
catalyst for Axiata in the near term as the potential value-accretive tower
spin-off for the Group would only happen in 2015 at the earliest. Valuations
is not attractive at the moment as the share price is trading near it’s the
sum-of-parts deriving value of RM6.92. Take Profit (KL)
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Calls for MAY WEEK 2/ WEEK 3 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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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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RM2.72
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-4.6%
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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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RM3.55
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+5.6%
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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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RM1.46
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+2.8%
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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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RM0.975
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-2.5%
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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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RM2.95
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-0.6%
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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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RM1.95
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+2.1%
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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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RM4.74
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-3.3%
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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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RM5.26
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-0.7%
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COASTAL (5071)
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20/5/2014
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RM4.74
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ACCUMULATE
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RM5.94
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RM4.72
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-0.4%
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PERDANA (7108)
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20/5/2014
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RM1.73
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ACCUMULATE
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RM2.25
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RM1.72
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-0.6%
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Good Call
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Not Good Call
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