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FLOWS
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Wednesday, 2 July, 2014
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BUY
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SKPETRO,
TENAGA, SIME
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SELL
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IHH, UEMS, MAXIS
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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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MUDAJYA (5085)
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2/7/2014
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RM2.51
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BUY
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RM2.85
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Stock has fallen 12% in the past 2-months from a high of RM2.85 mainly
due to delays in the commissioning of its 1440MW Indian coal power plant and
weak orderbook replenishment rate. Recent 1Q’14 result was disappointing
recording a drop of 3% and 40% YoY on revenue and PAT respectively mainly due
to lower sales and lower margins in the manufacturing and construction
segments. We believe these weaknesses has been priced in reflecting a current
PER of just 10.2x and forward FY’14 PER of 12.7x compared to industry average
of 16x. Moving forward, we expect earnings catalysts to come from
contributions on the commencement of the Indian power plant (expected EPS
14sen contribution to bottom line) and tenderbook arising from the KIDEX
highway project, 1MDB 2000MW coal power plant civil works and others (total
RM5bn) and stronger contributions from the property development segment.
Immediate support is seen at RM2.45-RM2.50 levels and current weakness
presents a Buying opportunity on expectations of positive news flow and
attractive 3.6% dividend yield, coupled with low gearing of only 2.3%, P/B of
1.1x and huge cash pile of RM307mil. Adding
to this, Co has been aggressively exercising share buy-backs which might
indicate undervaluation at current level.
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TAS (5149)
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2/7/2014
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RM1.50
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ACCUMULATE
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RM1.70
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A stock that has not received much coverage, we think TAS is a good
small cap proxy to both the regional O&G and logistics industries. TAS
has been recording net profit CAGR of 17% over the past 3 years and this is
expected to improve as they adopt the build-to-stock model which translates
into shorter waiting periods and hence, higher margins. Adding to this is
TAS’s plan to channel more orders to its wholly owned subsidiary in Labuan to capitalize on lower tax rate (15%).
Fundamental remains strong with an orderbook of RM340mil and practically zero borrowings (RM58mil
borrowings are revolving credit).The stock
has recently broken its mid-term resistance of RM1.50 to hit an all time
intra-day high of RM1.53 but valuation is still relatively undervalued at
current PER of 10.1x compared to industry peers of 15.7. We continue to watch
this stock expecting better results and would
Accumulate on weakness within RM1.40-1.45 levels.
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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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AHEALTH (7090)
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25/6/2014
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RM3.81
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BUY
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RM4.40
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RM3.78
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-0.8%
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FGV (5222)
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25/6/2014
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RM4.41
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BUY
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RM4.80
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RM4.16
(ex)
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-5.7%
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ARMADA (5210)
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26/6/2014
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RM3.52
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ACCUMULATE
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RM4.03
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RM3.40
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-3.5%
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KULIM (2003)
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26/6/2014
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RM3.46
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TRADING BUY
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RM3.98
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RM3.42
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-1.2%
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KOSSAN (7153)
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27/6/2014
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RM3.69
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ACCUMULATE
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RM4.86
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RM3.78
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+2.4%
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PRTASCO(5070)
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27/6/2014
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RM1.97
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ACCUMULATE
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RM2.58
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RM1.94
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-1.6%
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SCIB (9237)
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30/6/2014
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RM0.665
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ACCUMULATE
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RM0.80
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RM0.675
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+1.5%
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AIRASIA (5099)
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30/6/2014
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RM2.30
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BUY
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RM3.10
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RM2.32
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+0.8%
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TDM (2054)
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1/7/2014
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RM1.04
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ACCUMULATE
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RM1.20
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RM1.06
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+1.9%
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MHB (5186)
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1/7/2014
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RM3.72
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BUY
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RM4.10
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RM3.74
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+0.5%
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Performance
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Positive
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Negative
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Neutral
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