FLOWS
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Monday, 7 July, 2014
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BUY
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CIMB,
AXIATA, MAYBANK
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SELL
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MAXIS, 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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KPJ (5878)
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7/7/2014
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RM3.63
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SELL into strength
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-
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Share price is on a 6 day winning streak
outperforming the broad market as it rose 20+% over the the past 3 months
albeit a lack in catalyst. From the latest conference in June, the group has
presented its expansion strategy that will focus on building another 9
hospitals in Malaysia within the next 9 months. This however will not reflect
any boost in earnings immediately and the group will continue to report tepid
growth in earnings as the private hospital operators will face heavy
regulatory burdens for setting up new hospitals in Malaysia as well as a
heavy start up costs. From a technical perspective, the indicators show
limited upside from here on out and is expected to correct downwards towards
the 50 days SMA or support at RM3.35-RM3.40. RSI currently at 76% over bought,
which is also its highest point for the year. Valuations currently stood at
32x for FY14 which is close to its 7 year high of 33x, pays 1.6% yield. Sell
into strength/Switch to Hovid/Pharmaniaga for a cheaper healthcare exposure.
(RL)
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TURBO (5167)
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7/7/2014
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RM1.35
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ACCUMULATE
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RM1.60
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Group is a small cap Singapore based company
which supply and maintenance of various types of pumps (centrifugal and
metering), rotating equipment (compressors, industrial fan) to the O&G
and petrochemical industry players such as MNC, CHEVRON and EXXON Mobil.
While the company draws majority of its earnings from Singapore (>90%),
we’re expecting more contribution from the Malaysian segment going forward as
it could very well be one of the beneficiaries of the RM60bn RAPID project
that’s expected to dish out more contracts in 2nd half. The
company is highly efficient due to its low capex and asset light model which
has showed their ability to increase margin towards the 20% range within the
last few years. The company is also a net cash with RM0.39 in cash which the
group is devoted on paying a dividend (3.7% with a chance of a regular
special div) to reward its shareholders. Valuations trading at a slight
premium at 13x for FY14 although still lower than its peers or 15x. Technical
indicators are currently ripe for a breakout as it consolidated well at
current levels. Accumulate on any weakness on being proxy to RAPID and other
o&g jobs as well as attractive dividend yield.
(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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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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RM0.725
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+9.0%
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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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RM1.04
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0.0%
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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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RM2.55
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+1.5%
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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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RM2.84
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+1.0%
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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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RM1.02
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-1.0%
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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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RM2.69
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-1.2%
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Performance
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Positive
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Negative
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Neutral
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