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FLOWS
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Thursday, 5 June, 2014
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BUY
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GENTING,
UMW, YTL
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SELL
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DIGI, IOICORP,
RHBCAP
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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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NCB (5509)
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5/6/2014
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RM3.00
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Trading BUY
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RM3.55
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Stock has performed badly over the past year with a decline
of 38% since it peaked at RM4.85 in Aug’13 while the KLCI index is +4.3%
over the same period. This is due to its disappointing performance with
throughput down 6.9% y-o-y and the logistics division suffering losses from
low business volume and management’s decision to cut certain unprofitable
business streams. However, there is light in the tunnel for FY14 with Port
Klang registering high single-digit growth for the first quarter from higher
exports & imports (trade portion showed a significant increase in Malaysia’s
Q1 GDP) resulting in management’s confidence to guide a higher throughput for
FY14 versus negative growth for FY13. There is also an increase in capacity
with the completion of Wharf 8A, which is furnished with the state of the art
equipment, in December last year. NCB has retraced close to 50% retracement
of its 10-year bull run from July’03 to Aug’13 and the price is now supported
by its book value of RM3.00 (as at 31/3/14). With talks of potential suitors
for its port operations from other port operators, the second extension of
its port concession for another 30 years and the recent press report that NCB
may have bagged the proposed 30-year concession 3rd container
terminal in Port Klang, NCB is a trading buy at current level. For
comparison, NCB trades at significantly lower valuation than its competing
other operator in Port Klang, Westports, with prospective FY14 PER of
13.95x versus Westports 19.21x. Trading buy
(LJN/PT)
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IJM-WC (3336WC)
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5/6/2014
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RM2.79
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BUY
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RM3.30
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IJM is expected outperform the market in the near &
mid-term due to its many catalysts such as the imminent unveiling of the
project infrastructure of the RM6b West Coast Expressway, newsflow of
privatization of IJM Land via a share swap by IJM, the group’s tender for the
infra project for RAPID and the potential special or higher dividends from
the surplus cash (RM634m cash from the recent asset divestments). IJM-WC
presents a cheaper exposure into the stock with a discount of 3% and
provides a gearing of 2.51x. Conversion into the mother share is at an
exercise price of RM4.00 and it will expire on 24/10/14. Buy or switch from
mother share into IJM-WC
(LJN/PT)
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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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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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RM1.60
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+2.5%
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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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RM3.61
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-0.9%
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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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RM2.84
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+1.7%
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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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RM3.46
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-0.3%
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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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RM9.83
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+1.0%
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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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RM2.68
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+2.6%
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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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RM1.95
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+0.5%
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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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RM1.68
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-0.6%
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Performance
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Positive
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Negative
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Neutral
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