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FLOWS
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Friday, 9 May, 2014
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BUY
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AXIATA,
SKPETRO, IOICORP
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SELL
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MAYBANK, GENTING,
TENAGA
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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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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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Share price has retraced more than 13% from its recent high of RM
3.78. The stock has found support at this level with RSI hitting a low at
35%. Fundamentally, both its Mukah (120,000 MT) and Samalaju (320,000 MT)
plants are already operating close to 100%. Demand is not an issue as Press
Metal is one of only two smelters in ASEAN (capacity of 620,000 MT vs. demand
of 1.6mil MT). Global demand for aluminium will be bolstered by increase
usage in the automotive and aerospace markets. Furthermore, Sumitomo’s
acquisition of a 20% stake in the Samalaju plant has been completed with
proceeds of USD140mil. At any given time, about 25%-30% of stocks are
off-taken by Sumitomo which has a dedicated yard in Samalaju. Last but not
least, aluminium spot prices (USD1,738.75/MT currently) are currently trading
close to the trough level of a 4-year cycle. Prices are expected to increase
due to a supply shortfall. For the first time in 10 years, there will be a
global deficit (of 730,000 MT) of aluminium products this year. To sum it up,
Press Metal is set to enjoy the fruit of years of
aggressively investing in world-class low-cost aluminium
smelters. This is on the back of
aluminium prices bottoming out and rising,
while both smelters are now in full production
mode. Thus, the recent retracement in the share price provides investor
an opportunity. Accumulate with a TP or RM 4.11 (10x PER FY14 and 1.2x
P/BV).
(KL)
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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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Share price has retraced from a high of RM 1.58 and has found support
at the RM 1.50 level. As of to date, the Group has c.RM 3.7b of property
projects under its belt with 3 mega JV projects with GLC hogging the
limelight. The Group expects to launch The Bank, a JV project with Prasarana
which sits atop of Dang Wangi LRT station, in 4Q FY2014. The mixed
development project comprises of SOFO and SOHO residences with Average
Selling Price (ASP) of RM1500 psf, rendering a GDV of more than RM1b.
Meanwhile, its affordable housing project (<RM600k per unit) Alam Sanjung
has received an overwhelming response whereby its Tower A was fully taken up.
The staggering GDV from all its property projects will underpin earnings
growth of the Group, while also enhance its reputation as a property
developer. Furthermore, the Group is tipped to securing two building projects
under its construction division amounting to RM500m in total. Its outstanding
orderbook currently stands at RM110m and trades at 7x PER FY14. Accumulate
with a TP of RM1.75 based on 20% discount to SOP valuations.
(KL)
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Calls for MAY WEEK 1 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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HARTA (5168)
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2/5/2014
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RM6.34
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ACCUMULATE
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RM7.40
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RM5.87
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-7.5%
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UMW (4588)
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2/5/2014
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RM10.76
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ACCUMULATE
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RM12.00
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RM10.82
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+0.5%
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THHEAVY (7206)
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5/5/2014
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RM0.90
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Trading BUY
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RM1.20
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RM0.895
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-0.6%
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HOHUP (5169)
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5/5/2014
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RM1.60
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BUY
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RM2.30
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RM1.45
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-9.4%
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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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RM3.95
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+3.6%
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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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RM0.985
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+2.0%
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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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RM2.13
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+0.9%
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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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RM6.35
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0.0%
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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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RM0.74
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+1.3%
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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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