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FLOWS
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Friday, 4 July, 2014
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BUY
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CIMB,
SIME, SKPETRO
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SELL
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GENM, AMBANK, IHH
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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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GOB (1147)
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4/7/2014
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RM1.03
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Trading BUY
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RM1.40
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Interest
in the stock picked up again recently after a 2 months consolidation phase.
It was reported that the Penang Development Corporation has firmed up its
plans to turn some 312 ha near the Penang Second Bridge in Batu Kawan into a
theme park with a resort & golf course. The news has highlighted again
GOB’s position as an attractive alternative Penang mainland play, given
it’s 360-acre land-bank in Batu Kawan neighboring the proposed theme park
& golf course. Based on current land price of RM45 psf, the Batu Kawan
land is worth cRM680m ( ie almost triple GOB’s current market cap of RM234m).
The Batu Kawan project will be the group’s new earnings growth driver, given
encouraging growth prospects from several catalytic developments initiated by
the state government. Group has also recently acquired 2 land parcels in Sungai
Long worth RM36m (GDV RM200m project to be launched late 2014/early 2015).
Further news flow & upcoming new investments in the Batu Kawan area may
be key re-rating catalysts ahead ; Trading Buy ( TP RM 1.40 based on 50% disc
to RNAV).
(AK)
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WPRTS (5246)
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4/7/2014
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RM2.72
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ACCUMULATE
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RM3.12
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Group recently announced that it had received the
Notice from Port Klang Authority agreeing to the extension of the concession
period from Sept 1 2014 to Aug 31 2054 between the Government of Malaysia,
PKA & Westport . Although the announcement was not a surprise, it is
definitely positive as it improves the earnings visibility of the group over
the next 40 years. In the recent Q1FY14 results, numbers were in line with
throughput growth of 11% yoy. The growth prospect remains robust with
capacity expansion plans on track – current handling stands at 9.5m TEUs pa.
With CT7 coming onstream, capacity could be ramped up to 11m TEUs by 2015.
The P3 Alliance hit a roadblock with China rejecting the proposal on the
grounds of potential competition elimination & restriction in the market.
This is a positive surprise as market may have factored in some loss of TEUs
of transhipment traffic from the P3 Alliance earlier. Management has
reaffirmed its high single digit growth guidance ( some section of market
expecting only mid single digit). The share price has consolidated around the
RM2.68 level for the past 6 weeks. Trading at 19x FY14, a higher valuation is
probably justifiable given its status as the only listed transhipment port in
Asean, high EBITDA margin of 50% and dividend yield of more than 4%;
Accumulate(TP RM 3.12, based on 21x FY15).
(AK)
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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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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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RM3.81
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+3.2%
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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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RM1.95
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-1.1%
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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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RM0.69
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+3.7%
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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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RM2.28
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-0.9%
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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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RM3.78
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+1.6%
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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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RM2.47
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+1.6%
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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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RM1.55
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+3.3%
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SONA (5241)
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3/7/2014
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RM0.485
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Trading BUY
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RM0.60
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RM0.48
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+1.1%
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CYPARK (5184)
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3/7/2014
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RM2.81
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ACCUMULATE
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RM3.20
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RM2.83
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+0.7%
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Performance
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Positive
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Negative
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Neutral
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