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FLOWS
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Monday, June 30, 2014
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BUY
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PBBANK,
AXIATA, SIME
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SELL
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IHH, ASTRO, IOICORP
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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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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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Stock is an under-researched SARAWAK company
which is primarily involved in the manufacturing of niche yet high margin
industrial building systems/concrete structures such as spun piles, concrete
pipe, beams that are used as foundation in the pre-construction phases. While
this small cap company (45mil) only has a an outstanding orderbook of 43mil,
the group is currently in advanced talks with with Sarawak Energy Bhd (SEB)
for a (15~20mil ) contract to supply precast concretes foundation for a power
substation. We also like the group’s exposure to SCORE as they’ve been
supplying its specified concrete products to this project back in 2011. In
anticipation of more developments of SCORE and possibly another hydro-electric
plant later this year the group has already spent 2mil capex in 2013 to
increase the production capacity of its plants from 40k tonnes to 110k tonnes
which will commission in August. Currently group is without a PE as it just
returned into the black but trades below 1x PB at 0.88x for FY14. Accumulate
on weakness on bottoming fundamentals and exponential growth story.
(RL)
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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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Given
that Airasia’s strong branding, high demands for Low cost flights, improving
facilities in KLIA2, high aircraft utilization rate, we believe that the
group will remain profitable and will continue to sustain its growth in the
region. Moving forward, group will unfold its plans to strengthen its
position in India as it has begun operating since Mid June. Currently stock
is only trading at 9x FY14 PE and 7.6x FY15 PE which is relatively cheap
compared to regional peers which has approximately 20x PE. Pays 2.6% div
yield. We believe that downside is limited and the undemanding valuation
should serve as a justification for a BUY. Technical charts broke out above
the RM2.30 resistance and will pose an immediate upside to RM2.46. TP of
RM3.10 based on 10.3x FY15 PE which is the 7 year average for the group.
(RL)
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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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CBIP (7076)
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23/6/2014
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RM4.40
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BUY
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RM5.10
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RM4.35
(ex)
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-1.2%
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HOHUP (5169)
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23/6/2014
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RM1.41
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BUY
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RM2.30
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RM1.36
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-3.6%
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KUB (6874)
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24/6/2014
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RM0.555
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TRADING BUY
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RM0.725
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RM0.545
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-1.9%
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GKENT (3204)
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24/6/2014
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RM1.90
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TRADING BUY
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RM2.67
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RM1.88
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-1.1%
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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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RM3.81
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0.0%
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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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RM4.22
(ex)
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-4.4%
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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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RM3.40
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-1.8%
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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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RM3.69
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0.0%
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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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RM1.99
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+1.0%
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Performance
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Positive
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Negative
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Neutral
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