|
FLOWS
|
Tuesday, 27 May, 2014
|
|||||||||||||
|
BUY
|
MAXIS,
TENAGA, SKPETRO
|
|||||||||||||
|
SELL
|
UEMS, SPSETIA, YTL
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
THHEAVY (7206)
|
27/5/2014
|
RM0.895
|
ACCUMULATE
|
RM1.20
|
||||||||||
|
Since hitting the high of RM0.98 less than 2 weeks ago post
the announcement of securing the 7+10 year JX Nippon Layang field FPSO
contract (worth RM2.7b), the stock has corrected 9%. It is
now approaching the RM0.89 – 0.86 strong support band which has
held the previous 4 corrections, hence an attractive level to begin
accumulation. Having recently doubled the capacity of its Pulau Indah
fabrication yard, THHeavy is a position to bid for bigger fabrication
jobs with its JV partner, McDermott, with a total outstanding tender bid of
RM9bn. It was reported in the media that the THHeavy & McDermott JV
is one of the 3 bidders shortlisted for an EPCC contract from the
Baronia gas project worth up to RM1.5bn. THHeavy has an existing order
book of RM400m (excluding the recently secured RM2.7b FPSO contract), a
record high for the company since it exits from PN17 in 2011 and trades at a
FY15 PER of 10.7x. Accumulate in the current market weakness.
(LJN/PT)
 |
||||||||||||||
|
SALCON (8567)
|
27/5/2014
|
RM0.765
|
ACCUMULATE
|
RM0.855
|
||||||||||
|
Stock is poised for exciting times ahead in the second half
of the year with the award of the RAPID projects, namely the raw water supply
and the water treatment plant contracts where Salcon is tipped to be a likely
winner. These contracts are tendered both on an individual basis and in JV
with partners, and total up to RM500m. The company is also partnering
Ecoworld Development to launch a property development project with GDV of
RM1.2b in 3Q 2014 and start contributing to the bottomline from FY15.
Recently the Salcon, MMC & Ahmad Zaki consortium (Salcon 36% stake) has
also been successful in winning the RM1b Langat 2 water treatment plant which
is expected to contribute from FY14-FY16. The company is also bidding for
waste water & non-revenue water contracts in East Malaysia and Sri Lanka
of which the management is positive of securing. The prospective PER of
Salcon for FY15 will drop to 9x if these contracts are secured and executed
as planned. This is significantly lower than Salcon’s historical PER of 33x.
Salcon currently trades at FY14 PER of 17.4x and p/bk of 0.92x. Accumulate
(LJN/PT)
 |
||||||||||||||
|
|
||||||||||||||
|
Calls for MAY WEEK 3/ WEEK 4 2014
|
||||||||||||||
|
STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
COASTAL (5071)
|
20/5/2014
|
RM4.74
|
ACCUMULATE
|
RM5.94
|
RM4.84
|
+2.1%
|
||||||||
|
PERDANA (7108)
|
20/5/2014
|
RM1.73
|
ACCUMULATE
|
RM2.25
|
RM1.77
|
+2.3%
|
||||||||
|
SKPETRO (5218)
|
21/5/2014
|
RM4.24
|
ACCUMULATE
|
RM5.57
|
RM4.07
|
-4.1%
|
||||||||
|
AXIATA (6888)
|
21/5/2014
|
RM6.95
|
TAKE PROFIT
|
-
|
RM6.89
|
-0.9%
|
||||||||
|
KPS (5843)
|
22/5/2014
|
RM1.52
|
TRADING BUY
|
RM2.50
|
RM1.52
|
0.0%
|
||||||||
|
DRBHCOM (1619)
|
22/5/2014
|
RM2.42
|
ACCUMULATE
|
RM3.00
|
RM2.40
|
-0.9%
|
||||||||
|
BRAHIMS (9474)
|
23/5/2014
|
RM1.95
|
TRADING BUY
|
RM2.25
|
RM1.70
|
-12.9%
|
||||||||
|
ENGTEX (5056)
|
23/5/2014
|
RM1.85
|
ACCUMULATE
|
RM2.60
|
RM1.85
|
+0.0%
|
||||||||
|
SBCCORP (5207)
|
26/5/2014
|
RM2.09
|
TRADING BUY
|
RM2.91
|
RM2.11
|
-0.9%
|
||||||||
|
TAANN(5012)
|
26/5/2014
|
RM4.23
|
ACCUMULATE
|
RM5.00
|
RM4.26
|
+0.7%
|
||||||||
|
Performance
|
|
|
Positive
|
|
|
Negative
|
|
|
Neutral
|
|
