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FLOWS
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Wednesday, 4 June, 2014
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BUY
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PBBANK,
TENAGA, SPSETIA
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SELL
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SKPETRO, DIGI,
MAYBANK
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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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PADINI (7052)
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4/6/2014
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RM1.94
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BUY on weakness
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RM2.20
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The group continue to establish its position
in the country as the “value for money” name to look to when it comes to
apparels by opening an additional 3 Padini Concept stores and 4 Brands Outlet
stores nationwide and will continue to expand in the next 2 years. Moving
ahead, we believe the upcoming Mid year sales prior to Q4 coupled with the
upcoming Festive season as well as the ongoing Visit Malaysia Year will allow
the group to capitalise on these events and boost earnings. Recent weakness
in price was due its removal from the shariah compliant list from June
onwards and we believe that this is an opportunity to accumulate on any
weakness seen as its dividend yield and valuations remains compelling.
Trading at 12x for FY15 and 10x for FY16 currently and pays 5.6~% div yield,
paired with a strong balance sheet (net cash of 126mil) we believe it
deserves a defensive BOW.
(RL)
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GADANG (9261)
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4/6/2014
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RM1.69
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Trading BUY
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RM2.20
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2014 should be an outstanding
year for the group as many mega projects in the country, namely RAPID,
KVMRT2, are in the midst of its launch phases. The group had submitted for
RM6bn worth of tenderbooks including works from WCE, DASH, TRX and PR1MA. The
group’s outstanding orderbook of RM1.1b coming from MRT1 V2 package
(RM724.7m), Shah Alam hospital (RM191.1m), and site preparation works for
RAPID (Phase 1) (RM189.1m) will provide visibility for the next 2-3 years.
Upcoming rerating catalyst will probably be RAPID’s phase 2 parcel (4-500mil)
which should be awarded imminently. At current prices, Gadang is only trading
at 5.9x PE for FY15 and 3.2x for FY16. MACD of the technical chart has
bounced off the baseline and is looking for make a golden cross. Given solid
growth story and bottoming technicals. We advocate a Trading BUY call with a
TP of RM2.20 based on 4 year PE Average of 7.9x PE.
(RL)
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Calls for MAY WEEK 4/ JUNE 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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MISC (3816)
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28/5/2014
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RM6.19
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ACCUMULATE
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RM6.80
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RM6.01
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-3.0%
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AFG(2488)
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28/5/2014
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RM4.74
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SELL
into strength
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-
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RM4.93
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+4.0%
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KIMLUN (5171)
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29/5/2014
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RM1.56
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ACCUMULATE
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RM1.90
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RM1.62
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+3.8%
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ARMADA (5210)
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29/5/2014
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RM3.64
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ACCUMULATE
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RM4.32
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RM3.64
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0.0%
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MUHIBBAH (5703)
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30/5/2014
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RM2.79
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BUY
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RM3.20
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RM2.82
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+1.0%
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ASTRO (6399)
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30/5/2014
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RM3.47
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SELL
into Strength
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-
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RM3.45
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-0.6%
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GENTING (3182)
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2/6/2014
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RM9.73
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ACCUMULATE
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RM11.00
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RM10.00
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+2.7%
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GENM (4715)
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2/6/2014
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RM4.07
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ACCUMULATE
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RM4.50
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RM4.25
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+4.4%
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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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RM0.315
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0.0%
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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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RM2.61
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0.0%
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Performance
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Positive
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Negative
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Neutral
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