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FLOWS
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Wednesday, 23 July, 2014
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BUY
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TENAGA,MAYBANK,
SIME
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SELL
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SKPETRO, GENM, PCHEM
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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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NAIM (5073)
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23/7/2014
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RM4.05
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BUY
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RM4.50
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Share price fell 10% from its recent high of
RM4.42 and is currently trading near its 38% retracement of its last leg up.
Technical indicators are ripe for a rebound as the MACD sits just above the
baseline while RSI trading at 4 months low of 43%. Fundamentally, we like
Naim for being an attractive proxy to Malaysia’s biggest Renewable Energy
investment, Sarawak Corridor of
Renewable Energy (SCORE). Naim is one of the more prominent construction
players in Sarawak, securing an orderbook of RM1.3bn and and outstanding GDV
of RM3.0b boosted by a property boom in Bintulu & industrial development
in Samalaju which will drive earnings for the next 5 years. We also like Naim
for its indirect exposure to the O&G service sector with 28% stake in
Dayang which has been outperforming lately. The stock is attractively
priced currently trading at prospective FY14 & FY15 PER of 9.2x &
8.2x and p/bk of 0.90x & 0.83x. BUY
(RL)
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GAMUDA (5398)
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23/7/2014
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RM4.76
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ACCUMULATE
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RM5.30
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Share price rebounded off the 38% retracement level to
consolidate around the RM4.75 level. After meeting with the group recently we
feel that the prospect for the group remain intact as the KVMRT2 project
started preliminary works. While the government is still finalizing the rail
track’s realignment plans for the later phases (exp in 2h), we are confident
that MMC-GAMUDA JV will still be the tunnelling contractor (50 :50 of RM10bn)
and PDP for the project which would replenish the group’s orderbook by at
least another RM5bn by early-mid FY16. Also, investors should relief now that
the threat of Section 114 of WASIA has been removed allowing the group to
continue with negotiations. Nevertheless, we are confident that the group
will pay as much as 40sens (~8%)special dividend once the sale of SPLASH goes
thru. It is also trading at attractive valuations
relative to historical PER of 20.2x with PER of 13.4x for FY15 and earnings
growth of 14% for the next 2 years. Buy.
(RL)
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Calls for JULY WEEK 2/ WEEK 3 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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ARMADA (5210)
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16/7/2014
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RM3.24
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ACCUMULATE
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RM3.98
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RM3.25
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+0.3%
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DAYA (0091)
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16/7/2014
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RM0.28
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Trading BUY
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RM0.35
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RM0.295
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+5.3%
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ICON (5255)
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17/7/2014
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RM1.85
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BUY
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RM2.20
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RM1.85
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0.0%
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NOTION (0083)
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17/7/2014
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RM0.65
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Trading BUY
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RM0.72
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RM0.725
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+11.5%
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PHARMA (7081)
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18/7/2014
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RM4.83
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ACCUMULATE
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RM5.40
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RM4.83
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0.0%
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YTL (4677)
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18/7/2014
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RM1.59
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BUY
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RM1.93
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RM1.55
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-2.6%
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PANTECH (5125)
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21/7/2014
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RM1.14
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ACCUMULATE
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RM1.30
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RM1.12
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-1.8%
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L&G (3174)
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21/7/2014
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RM0.565
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ACCUMULATE
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RM0.675
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RM0.575
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+1.7%
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POS (4634)
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22/7/2014
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RM5.33
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TRIM
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-
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RM5.20
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-2.5%
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PERISAI (0047)
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22/7/2014
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RM1.50
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ACCUMULATE
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RM1.88
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RM1.54
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+2.6%
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Performance
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Positive
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Negative
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Neutral
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