|
FLOWS
|
Friday, 11 July, 2014
|
|||||||||||||
|
BUY
|
WCT,
SKPETRO, MAYBANK
|
|||||||||||||
|
SELL
|
DIGI, TM, RHBCAP
|
|||||||||||||
|
STOCK ALERT
|
||||||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||||||
|
IHH (5225)
|
11/7/2014
|
RM4.70
|
TRIM
|
RM3.80
|
||||||||||
|
The
share price has done very well, adding c20% over the past 2 months. Optimism
on the stock followed it’s Q1 results which were in line. YOY, 1Q revenue
& EBITDA improved 8% & 11% respectively, underpinned by organic
growth of existing hospitals as well as the opening of Acibadem Atakent
Hospital in Jan 2014. Overall, IHH managed to maintain its 1Q14 EBITDA margin
of 25%. Group’s cash balance remained stable at RM2.3b. However, the price
ascend has brought IHH’s valuation to rather demanding level, ie a lofty 49x
FY14, ahead of its regional peer’s of 38x. We reckon the positives are
already well reflected in the price & would suggest selling into
strength; TRIM ( Target buyback at RM3.80, based on PER 40x FY14,
slight premium to peers given it’s huge market capitalization & strong
growth prospects).
(AK)
 |
||||||||||||||
|
SUPERMX (7106)
|
11/7/2014
|
RM2.15
|
ACCUMULATE
|
RM2.60
|
||||||||||
|
The
share price has retraced c30% over the past 5 months, largely attributable to
sector concerns of overly aggressive capacity expansion by glove makers. We
see this pullback as an opportunity to buy as it remains a proxy to rising
global healthcare spending. Demand for glove will remain inelastic &
recent reports expect overall demand for gloves to remain strong & robust
( annual growth of 8-10% pa) over the next few years. It can also be argued
that oversupply concerns have been exaggerated, as some industry analysis
conducted suggest that new incoming supply would be easily absorbed by the
growing global demand. This is in tandem with the rise in hygiene standards,
improved healthcare awareness, growing population & affluence in its
target market. Despite posting weak Q1 result ( partly due to a fire mishap
in its Alor Gajah plant & lower ASP), we believe this is just a temporary
blip with slack to be made up in 2H14. Management has guided that lines
affected by the fire have been re-commissioned in 2Q14. EPF remains a
substantial shareholder with an 8% stake. Trading at just 9x for FY15 (c25%
discount to sector PER), we reckon most foreseeable risks have been priced in
or overdone, and that any positive news-flow could significantly re-rate the
stock; Accumulate (TP RM2.60 based on 11x FY15 EPS).
(AK)
 |
||||||||||||||
|
|
||||||||||||||
|
Calls for JULY WEEK 2 2014
|
||||||||||||||
|
STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||||||
|
GOB (1147)
|
4/7/2014
|
RM1.03
|
Trading BUY
|
RM1.40
|
RM1.03
|
0.0%
|
||||||||
|
WPRTS (5246)
|
4/7/2014
|
RM2.72
|
ACCUMULATE
|
RM3.12
|
RM2.75
|
+1.1%
|
||||||||
|
KPJ (5878)
|
7/7/2014
|
RM3.63
|
SELL
into strength
|
-
|
RM3.51
|
-3.4%
|
||||||||
|
TURBO (5167)
|
7/7/2014
|
RM1.35
|
ACCUMULATE
|
RM1.60
|
RM1.33
|
-1.5%
|
||||||||
|
ECONBHD (5253)
|
8/7/2014
|
RM0.765
|
BUY
|
RM1.00
|
RM0.735
|
-4.0%
|
||||||||
|
GUH (3247)
|
8/7/2014
|
RM1.39
|
BUY
|
RM1.55
|
RM1.39
|
0.0%
|
||||||||
|
UCHITEC(7100)
|
9/7/2014
|
RM1.42
|
ACCUMULATE
|
RM1.78
|
RM1.46
|
+2.8%
|
||||||||
|
MEDIA (4502)
|
9/7/2014
|
RM2.44
|
ACCUMULATE
|
RM2.90
|
RM2.40
|
-1.7%
|
||||||||
|
BARAKAH (7251)
|
10/7/2014
|
RM1.58
|
ACCUMULATE
|
RM1.80
|
RM1.58
|
0.0%
|
||||||||
|
GENTING (3182)
|
10/7/2014
|
RM9.80
|
ACCUMULATE
|
RM11.00
|
RM9.79
|
-0.2%
|
||||||||
|
Performance
|
|
|
Positive
|
|
|
Negative
|
|
|
Neutral
|
|
