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FLOWS
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Thursday, 10 July, 2014
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BUY
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SKPETRO,
TENAGA, IHH
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SELL
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DIGI, MAYBANK, ARMADA
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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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BARAKAH (7251)
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10/7/2014
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RM1.58
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ACCUMULATE
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RM1.80
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Following the pull-back post the 2Q14 results which saw net
profit declined 5% QoQ, Barakah has been languishing in a trading band of
RM1.63 – RM1.53. The 2Q14 results were lower as the pipelay barge, KL101, was
idle after it completed its charter with Pertamina, and was been prepared for
the RM1.5b Pan Malaysian T&I contract which kick started in May. KL101
was previously chartered as an accommodation barge but will now be utilized
as a pipelay barge which will have higher charter rates. Management guided
that they expect @ RM300m top-line contribution to be recognized this year
and they do not foresee a need for any additional third-party vessel for the
contract which means margins will not be diluted to subcontractors. Hence,
2H14 results will show significant improvement compared to the 1H14. The
re-tender of the Saudi T&I job, worth up to RM2.5b, closed on June 9.
There are only 2 other bidders for this job and the award of the contract is
expected before September. This is a major re-rating catalyst for Barakah if
it comes through. Barakah has a current order book of RM2.38b (a healthy
3.75x FY14 consensus turnover), a bid book of RM2.6b and trades at FY15 PER
of 10.3x. Accumulate
(PT)
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GENTING (3182)
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10/7/2014
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RM9.80
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ACCUMULATE
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RM11.00
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Stock has retraced to near its
support band of RM9.70 – RM9.60 which held 4 pullbacks over the past 12
months. We view this level as a low risk area to position into Genting.
Recently there were frequent press reports of Japan having tabled the Casino
Introduction Bill in its parliament & they are scheduled to approve the
Bill “by the fall”. It was reported that Genting’s 52% subsidiary, Genting
Singapore (GENS), will partner Japanese institutions to bid for the
integrated casino resort. Integrated resort players, like Genting, are said
to be preferred to pure casino players from Macao by the authorities. Market
has been monitoring this development for the past few years and it is an
important mid-term catalyst for the stock. Technically, Genting is trading
close to its 38% retracement level of its rally from August 2013 low of
RM8.74 to its January 2014 high of RM10.40 with positive weekly macd
indicating potentially better mid-term price performance. In the longer-term
charts, Genting is tracing out a 3-year symmetrical triangle pattern with a
break-out level at RM10.25. Fundamentally, Genting is also trading at
trough valuation on an EV/EBITDA basis at 7.2x for FY14, close to the
low during the 2003 SARS crisis and at discount of more than 40% vis-Ã -vis
its regional peers. Accumulate
(PT)
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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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SONA (5241)
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3/7/2014
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RM0.485
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Trading BUY
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RM0.60
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RM0.50
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+3.0%
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CYPARK (5184)
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3/7/2014
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RM2.81
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ACCUMULATE
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RM3.20
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RM2.79
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-0.8%
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GOB (1147)
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4/7/2014
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RM1.03
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Trading BUY
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RM1.40
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RM1.01
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-2.0%
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WPRTS (5246)
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4/7/2014
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RM2.72
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ACCUMULATE
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RM3.12
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RM2.74
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+0.8%
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KPJ (5878)
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7/7/2014
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RM3.63
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SELL
into strength
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-
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RM3.51
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-3.4%
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TURBO (5167)
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7/7/2014
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RM1.35
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ACCUMULATE
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RM1.60
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RM1.35
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0.0%
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ECONBHD (5253)
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8/7/2014
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RM0.765
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BUY
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RM1.00
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RM0.735
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-4.0%
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GUH (3247)
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8/7/2014
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RM1.39
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BUY
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RM1.55
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RM1.38
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-0.8%
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UCHITEC(7100)
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9/7/2014
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RM1.42
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ACCUMULATE
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RM1.78
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RM1.43
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+0.7%
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MEDIA (4502)
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9/7/2014
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RM2.44
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ACCUMULATE
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RM2.90
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RM2.41
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-1.3%
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Performance
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Positive
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Negative
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Neutral
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