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FLOWS
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Friday, 13 June, 2014
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BUY
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SKPETRO,
TENAGA, RHBCAP
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SELL
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YTL, ASTRO, UMW
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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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SUNSURIA (3743)
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13/6/2014
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RM1.41 / 0.84 (EA)
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ACCUMULATE
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RM1.10 (EA)
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Share price fell a whopping
16% from the beginning of May (after their EGM on the 12th) as the
date nears the rights issue exercise which is expected to be completed in
August. Post rights (3:1 @ RM0.65) the ex all price currently stands at
RM0.84 cents. We feel that the cash call is necessary as this will enable to
group to proceed with the injection of Xiamen University Township @ Salak
Tinggi (XiamenU), Medini @ Iskandar Malaysia, Suria Hills @ Setia Alam and
7th Avenue 2, Setia Alam, with total 403 acres and pegged with a GDV of
RM10b. The exercise will also boost the group’s market cap into the mid cap
(approx ~600mil from 200mil) range and will turn the group into a net cash
group albeit a slightly higher gearing (0.3x over next 2 years). Current
price is trading about 10x PE for FY15 as the group aims to narrow it down
further to mid single PE by FY2017 following strong boost in net profit from
the injections and more phase launches of these projects. Price is trading at
a 55% discount to RNAV (c.RM1.84) and we feel that the ex all price offers an
attractive upside from there. ACCUMULATE on current weakness. Ex-all TP of
RM1.10 (40% discount to RNAV).
(RL)
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PANTECH (5125)
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13/6/2014
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RM1.01
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ACCUMULATE
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RM1.30
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We believe that Pantech is
well positioned to benefit from this as they are reputable one-stop pipes,
fittings and flow controls solution provider in the country. Furthermore, the
group’s specializes on manufacturing niche products such as customize nickel
allow/ copper nickel pipe fittings which could fetch a fairly higher margin
(group net margin of 9.7%). As we head towards the 2nd half of the
year, we are expecting more flows from PETRONAS’s RM60bil RAPID to thus
directly translating to higher demands of pipes ahead of the commissioning of
these phases. Technically, the share price chart has formed an ascending flag
with a potential break up TP to RM1.08 in the near term. At current
price, stock is trading at undemanding multiple of 8.9x for FY15 and only 7x
for FY16. Pantech also has a div yield of 5.0% for FY15. Buy with a TP of
1.30 based on 9x for FY16.
(RL)
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Calls for JUNE 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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TALAMT (2259)
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6/6/2014
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RM0.09
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Trading BUY
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RM0.16
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RM0.0.95
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+5.5%
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SNTORIA (5213)
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6/6/2014
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RM0.895
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BUY
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RM1.20
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RM0.895
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0.0
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SUCCESS (7207)
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9/6/2014
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RM1.48
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BUY
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RM2.00
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RM1.47
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-0.7%
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WEIDA (7111)
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9/6/2014
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RM1.60
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ACCUMULATE
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RM2.00
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RM1.59
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-0.7%
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YTL (4677)
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10/6/2014
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RM1.63
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BUY
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RM2.40
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RM1.65
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+1.2%
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SUPERMX(7106)
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10/6/2014
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RM2.33
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BUY
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RM2.90
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RM2.17
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-6.9%
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SKPETRO (5218)
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11/6/2014
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RM4.03
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ACCUMULATE
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RM4.60
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RM4.21
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+4.4%
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AIRPORT (5014)
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11/6/2014
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RM7.61
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BUY
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RM8.45
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RM7.70
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+1.1%
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PENERGY (5133)
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12/6/2014
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RM3.03
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SELL
into strength
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-
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RM3.01
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-0.7%
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WCT (9679)
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12/6/2014
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RM2.23
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ACCUMULATE
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RM2.80
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RM2.20
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-1.4%
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Performance
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Positive
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Negative
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Neutral
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