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FLOWS
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Tuesday, 3 June, 2014
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BUY
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YTLPOWR,
MAYBANK, CIMB
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SELL
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DIGI, TENAGA, UEMS
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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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DAYA (0091)
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3/6/2014
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RM0.315
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ACCUMULATE
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RM0.44
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The
share price has fallen c30% from its high 3 months ago & has consolidated
well. The fall in was largely attributable to its poor 4Q13 results and
guidance that the weak showing will continue in 1Q14. A potential legal suit
with SBM Offshore (arising from unauthorized purchase of OSVs valued at
US180m ) and the fact that management has not made any provision for
potential legal costs also weighed on the stock. The recently released 1Q14
results were weak as expected. We however believe the group is set to recover
form hereon. The Siem Daya 1 & 2 were deployed to the North Sea to
fulfill its charter with Technip Norge AS in February 2014 & will
register contributions in the subsequent quarters. The Technical Services
division also posted strong revenue improvement due to completion of several
construction projects. Management is planning to raise RM950m via equity
& debt to acquire 100% ownership of SD1 & SD2. All in, we reckon most
of the negatives may already have been reflected in the stock price, and that
results should recover in the subsequent quarter. With RSI at 38 and
undemanding PER of 10.3x & 8.6x FY14 &15 - Accumulate. (TP
RM0.44 based on 12x FY15).
(AK)
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SURIA (6521)
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3/6/2014
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RM2.61
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ACCUMULATE
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RM3.20
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The stock price has traded in a narrow range (
RM2.40-2.70) over the past 6 months. The latest 1Q14 results were within
expectation, but has demonstrated impressive revenue growth, on the back of
improved port revenue and continuous turnaround of the logistic &
bunkering division ( L&B Div). PBT margin has improved to 28% in 1Q14,
also driven by improved efficiencies at port operations & the L&B
division. While we like Suria for its continuous improvements as mentioned
above, we believe there’s more excitement for the group once it secures the
final approval of the development order to launch the Jesselton Quay project,
although the final size of the project has not been revealed. Group is
trading at an undemanding PE of 10.6x FY15, the cheapest port operator
compared to others, which are trading at a range of 13-18x. Sound
fundamentals accompanied by a key near term catalyst in the Jesselton Quay
project; Accumulate (TP RM 3.20., based on 13x FY15 EPS ) .
(AK)
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Calls for MAY WEEK 4/ JUNE WEEK 1 2014
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STOCK
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Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
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THHEAVY (7206)
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27/5/2014
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RM0.895
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ACCUMULATE
|
RM1.20
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RM0.885
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-1.2%
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SALCON (8567)
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27/5/2014
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RM0.765
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ACCUMULATE
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RM0.855
|
RM0.785
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+2.6%
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MISC (3816)
|
28/5/2014
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RM6.19
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ACCUMULATE
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RM6.80
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RM6.14
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-0.9%
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AFG(2488)
|
28/5/2014
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RM4.74
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SELL
into strength
|
-
|
RM4.93
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+4.0%
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KIMLUN (5171)
|
29/5/2014
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RM1.56
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ACCUMULATE
|
RM1.90
|
RM1.63
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+4.4%
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ARMADA (5210)
|
29/5/2014
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RM3.64
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ACCUMULATE
|
RM4.32
|
RM3.59
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-1.4%
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MUHIBBAH (5703)
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30/5/2014
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RM2.79
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BUY
|
RM3.20
|
RM2.76
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-1.1%
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ASTRO (6399)
|
30/5/2014
|
RM3.47
|
SELL
into Strength
|
-
|
RM3.40
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-2.1%
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GENTING (3182)
|
2/6/2014
|
RM9.73
|
ACCUMULATE
|
RM11.00
|
RM9.90
|
+1.7%
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GENM (4715)
|
2/6/2014
|
RM4.07
|
ACCUMULATE
|
RM4.50
|
RM4.22
|
+3.6%
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Performance
|
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Positive
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Negative
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Neutral
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