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FLOWS
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Monday, 9 June, 2014
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BUY
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UEMS,
SIME, MAYBANK
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SELL
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SKPETRO, GENM, IHH
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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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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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Success Transformer is one of the largest
low-voltage transformer and industrial lighting manufacturers in Malaysia.
Since establishment in 1980 company has grown from domestic based to now
owning over 850 distributors in Malaysia and have made considerable headway
in the international market with export to over 40 countries including
France, Australia, the United Arab Emirates (UAE), Japan, Korea, India, Hong
Kong and Singapore. Company has also diversified into process equipment
manufacturing via the acquisition of Seremban Engineering Sdn. Bhd. (SEB),
which involved the manufacturing and fabrication of process equipment such as
unfired pressure vessels, storage tanks, silos, and heat exchangers used in
O&G and Palm Oil Mills. Revenue has been growing steadily with CAGR of
13% in the past 4 years. Despite the share price rising steadily over the
years we believe share price remain attractive as it trades only at 5.7x PER.
Strength of company has been its ability to grow over the past 10 years.
Process equipment division is expected to see good growth this year with
focus in major O&G projects such as RAPID. Current dividend yield stands
at 2.7%. Buy with TP: RM2.00 (8xPER)
(TYK)
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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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Since hitting its peak of MR1.84 in 2013
share price has consolidated well at the RM1.60 level which offers a good
opportunity to accumulate on this under researched counter. Company’s core
business is in the production of 1) polyethylene engineering (PE) products,
2) building of telecommunication towers 3) Water, wastewater and other infrastructure
and 4) property development. Governments plans to urbanise Sarawak and Sabah
bodes well for its telco and wastewater infrastructure division in the East
Malaysia as MCMC has announced plans to build 149 new towers in Sarawak and
79 towers in Sabah with also plans announced by govt to provide clean water
in the states. Recent worries of water shortage also bodes well for its
manufacturing products such as storage tanks and flexible PE Pipes. Further
infra works such as KVMRT2 and LRT is a boon for its road barriers products.
Its maiden property project Urbana Residences saw take-up rate in excess of
90% with plans now to launch its next premier project located in Mont Kiara
in the second half of year 2014. These 2 projects has estimated GDV of around
RM600mil. Balance sheet is strong with net cash of 67sen. Currently only
trades at 9x historical PER with profits expected to exceed RM30mil in FY15
from property and telco divisions. Assuming a profit of RM30mil PE falls to
7x. Excluding cash company could be trading as low as 4.5x PER. Accumulate
with TP: RM2.00 (9xFY15 PER)
(TYK)
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Calls for 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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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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RM4.21
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+3.4%
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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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RM0.31
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-1.6%
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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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RM2.87
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+9.9%
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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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RM1.92
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-1.1%
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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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RM1.69
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0.0%
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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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RM2.99
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-0.3%
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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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RM2.77
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-0.8%
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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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RM0.095
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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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Performance
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Positive
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Negative
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Neutral
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