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FLOWS
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Monday, 26 May, 2014
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BUY
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SPSETIA,
DIALOG, CIMB
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SELL
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MAYBANK, ARMADA,
DIGI
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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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SBCCORP (5207)
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26/5/2014
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RM2.09
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TRADING BUY
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RM2.91
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Group is a low-key contractor
turned developer which recently caught the attention of many after its
signing of a JV project with Suria to develop Jesslton Quay (Kota Kinabalu,
Sabah) which has a RM1.8bn GDV. The group has a total of RM6.3b in the
pipeline mainly coming from Kiara East (GDV: RM1.5b), Jesselton Quay (GDV:
RM1.8b), Batang Kali development in JV with PKNS (GDV: RM1.7b), Cantoment
Square (GDV: M500m), and The Peak (GDV: RM500m), planned for the next
7-8 years. Its current unbilled sales stands at RM200m providing the group
with at least two years of earnings visibility. Group also expects a growth
at a CAGR of 25% - 28% should they are able to maintain year-on-year sales
growth of 10% from FY15 onwards. Current share price is approximately 20%
from its recent high yet is still trading at a hefty 68% discount to RNAV of
RM6.48 attributed to its massive landbank. Currently valuations are
undemanding at only 7.5x for fy15 and 6x for FY16. With the upcoming results
and the launching of phase 1 Jesselton Quay, we expect discount to narrow.
Trading BUY with a TP of RM2.91 based on 55% discount to RNAV.
(RL)
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TAANN(5012)
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26/5/2014
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RM4.23
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ACCUMULATE
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RM5.00
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We believe that the price of this counter
should appreciate especially when group’s earning is highly leveraged to CPO
prices & log prices. We continue to like the group for its young
plantation profile (average approximately 6 years) and its ability to
potentially record a double digit production growth for its FFB for the next
few years. This Sarawak upstream oil palm plantation player is expected to
post better set of results for the upcoming quarter as their FFB output is
usually higher in its 2H. Furthermore, the stable-and-improving outlook
for the timber industry attributed to the Myanmar log export ban will cause a
rise in log prices. Currently trading at only 14x PE for FY 14 and 10.9x for
FY15 vs its 7 year average of 17x and sector average of 14x. MACD remains
flat while the share price consolidated well around these levels. ACCUMULATE
ahead of the Islamic festive season with a TP of RM5.00 which is based
on 13x PE for FY15.
(RL)
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Calls for MAY WEEK 3/ WEEK 4 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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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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RM5.14
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+4.8%
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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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RM5.05
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-4.8%
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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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RM4.85
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+2.3%
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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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RM1.81
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+4.6%
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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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RM4.09
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-3.6%
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AXIATA (6888)
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21/5/2014
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RM6.95
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TAKE PROFIT
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-
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RM6.92
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-0.5%
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KPS (5843)
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22/5/2014
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RM1.52
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TRADING BUY
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RM2.50
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RM1.50
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-1.2%
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DRBHCOM (1619)
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22/5/2014
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RM2.42
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ACCUMULATE
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RM3.00
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RM2.42
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+0.0%
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BRAHIMS (9474)
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23/5/2014
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RM1.95
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TRADING BUY
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RM2.25
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RM1.88
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-3.6%
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ENGTEX (5056)
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23/5/2014
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RM1.85
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ACCUMULATE
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RM2.60
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RM1.85
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+0.0%
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Performance
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Positive
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Negative
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Neutral
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