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FLOWS
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Thursday, 24 July, 2014
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BUY
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MAXIS,
MAYBANK, TENAGA
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SELL
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DIGI, TM, SPSETIA
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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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GASMSIA (5209)
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24/7/2014
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RM3.36
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ACCUMULATE
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RM3.65
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A solid defensive stock with
strong free cash flow & earnings CAGR of 8% for FY14 – FY16. This is
derived from a higher supply of gas from parent, Petronas, arising mainly
from the new Malacca regasification plant. Management has also secured
customers for 80% of this additional supply coming in. Co is debt free and
mgt has guided that capex has already peaked in the last couple of years,
hence the stock is expected to provide attractive dividend yield (consensus
FY15 & FY16 dividend yield of 4.6% & 4.9% respectively). In addition,
GasMsia has very low foreign shareholdings, a good stock to provide
diversification against any exit of foreign funds from emerging or smaller
cap markets. Accumulate
(LJN/PT)
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AFG (2488)
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24/7/2014
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RM5.04
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ACCUMULATE
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RM5.50
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A potential M&A play
with Maybank’s leading position being threatened by the proposed merger of
CIMB, RHBCap & MBSB. AFG’s major shareholder, Vertical Theme (29% stake
in AFG), has been touted for quite some time to be a seller at the right
price. AFG is also backed by good fundamentals in the event the M&A angle
does not play out. It is attractively priced at PER of 11.9x & p/bk of
1.65x for FY3/16. It will also performed better than its peers in an
increasing interest rates environment as only 10% of their total loans are
fixed-rate loans & 34% of its total deposits are current & savings
accounts. AFG has one of the highest capital ratios in the industry which
allows the bank to pay out 60% of their earnings as dividend. This is
equivalent to a generous 4.8% dividend yield for FY3/16. Accumulate
(LJN/PT)
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Calls for JULY 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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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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RM1.83
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+1.1%
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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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RM0.69
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+6.1%
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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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RM4.82
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-0.3%
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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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RM1.57
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-1.3%
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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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RM0.585
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+3.5%
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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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RM5.12
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-4.0%
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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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RM1.52
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+1.3%
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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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RM4.05
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0.0%
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GAMUDA (5398)
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23/7/2014
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RM4.76
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BUY
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RM5.30
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RM4.76
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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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