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FLOWS
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Wednesday, 25 June, 2014
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BUY
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TM,
TENAGA, AXIATA
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SELL
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SKPETRO, IOICORP, GENM
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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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AHEALTH (7090)
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25/6/2014
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RM3.81
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BUY
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RM4.40
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The company has undergone a transformation into a
healthcare group from a pharmaceutical-based company. Its objective is to be
an important regional player by growing the pharmaceutical, consumer products
and orthopaedics business and increasing its exports with key markets for its
pharmaceutical products in Hong Kong, Singapore and Indo China. Its main div pharmaceuticals
accounted for 80% of group revenue in 2013 but it has since entered
direct-to-consumer healthcare products, diagnostics and most recently, the
contract manufacturing of orthopaedic devices. The venture in late 2013 was
through its 40% owned ABio Orthopaedics Sdn Bhd
in Penang which produces high quality, precision manufacturing orthopaedic
parts for four of the world top 10 multinational companies (MNCs) and a
foothold into the US$43bil global orthopaedics market. The next major upgrade
for the manufacturing plant is planned for next year. The new facilities will
be focused on the manufacturing of solid pharmaceutical products such as
tablets and capsules for drugs which have come off patent. It is also looking
to widen our products for generic drugs, prescription drugs for
cardiovascular, cholesterol management and antibiotics. Increased liquidity
from the 1:4 bonus issue should see increased trading activity in this
counter and should help elevate its valuation closer to Caring’s PE of 21x vs
Apex 12.9x for current year. Buy with a target price of RM4.40.
(DN)
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FGV (5222)
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25/6/2014
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RM4.41
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BUY
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RM4.80
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The plantation giant has underperformed the industry
falling 4.6% YTD vs +12% for their domestic peers. Further more price dipped
below its SMA 200 at end May touching a low of RM4.28. Valuations now look
attractive as it trades at a forward PE of 17.5x vs industry average of 18.5x
and significantly below market leaders IOIC 22x and KLK 20x. Management
expects FFB growth of 4-6% and with El Nino looming set to drive prices
higher a focus back into the sector is likely. Technically the stock looks
set to test the resistance of RM4.40 again before heading towards an
immediate target of RM4.60 and RM4.80. BUY
(DN
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Calls for JUNE 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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BAT (4162)
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18/6/2014
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RM69.24
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SELL
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RM62.00
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RM66.70
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-3.7%
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DAYANG (5141)
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18/6/2014
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RM3.51
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ACCUMULATE
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RM4.35
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RM3.58
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+1.9%
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TUNEINS (5230)
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19/6/2014
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RM2.34
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ACCUMULATE
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RM2.60
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RM2.28
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-2.6%
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JTIASA (4383)
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19/6/2014
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RM2.49
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ACCUMULATE
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RM2.94
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RM2.51
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+0.8%
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PERDANA (7108)
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20/6/2014
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RM1.80
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ACCUMULATE
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RM2.10
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RM1.83
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+1.6%
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ALAM (5115)
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20/6/2014
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RM1.56
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ACCUMULATE
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RM2.10
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RM1.57
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+0.6%
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CBIP (7076)
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23/6/2014
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RM4.40
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BUY
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RM5.10
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RM4.48
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+1.8%
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HOHUP (5169)
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23/6/2014
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RM1.41
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BUY
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RM2.30
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RM1.39
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-1.5%
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KUB (6874)
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24/6/2014
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RM0.555
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TRADING BUY
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RM0.725
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RM0.55
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-1.0%
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GKENT (3204)
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24/6/2014
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RM1.90
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TRADING BUY
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RM2.67
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RM1.87
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-1.6%
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Performance
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Positive
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Negative
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Neutral
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