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FLOWS
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Friday, 1 August, 2014
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BUY
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MAYBANK,
PBBANK, TENAGA
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SELL
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IOICORP, CIMB, DIGI
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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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MAYBULK (5077)
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1/8/2014
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RM1.76
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ACCUMULATE
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RM2.20
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Share
price has remained relatively depressed following the group’s poor Q1
results. However, we reckon that the performance in the subsequent quarters
will improve, as we expect volume & demand ahead to be driven by
expansion of Australian iron ore production capacity, the narrowing of demand
& supply gap of dry bulk vessels globally, as well as robust iron ore
stockpiling from emerging markets, especially China. Management has
reaffirmed its optimism of dry bulk shipping continuing to strengthen in 2H
2014. The recent acceptance of a RM320m term loan facility is positive, and
reiterates the group’s intention and capability of renewing & expanding
their dry bulk fleet to capture the potential recovery in the dry bulk
shipping segment. We can expect a stronger 2H for dry bulk shipping due to
seasonality & Maybulk is expected to benefit. As for the tanker segment,
although no fleet expansion is planned, performance could improve due to
recovery in global economy & possibly better charter rates. RSI @ 40;
Accumulate on weakness (TP RM2.20, based on 1.2x BVPS or 21x FY15 EPS).
(AK)
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DESTINI (7212)
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1/8/2014
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RM0.705
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Trading BUY
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RM0.86
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The share price has consolidated well for a month
now, following it’s run up to 74s in early July. The group has drawn
attention, after it business expansion plans transformed it from a pure
aviation MRO service provider into an integrated engineering solution
provider focusing on the aviation, marine & O&G industry. Its
aviation division is backed by a strong OB of RM250m, the marine division has
shifted focus to the manufacturing of O&G lifeboats & potential
tie-ups with industry leaders, while the O&G division is underpinned by
an OB of RM750m. The recent acquisitions of Vanguard, Samudra Oil Tubular
Handling Services & TFC could potentially translate to a very strong
PATAMI growth for FY14 & 15. With the restructuring and shift into the
commercial sector, the group hopes to rely less on governmrnt contracts to
fuel growth. Another re-rating catalyst could be it securing a RM1b 5-year
MRO JV contract from the Middle East. Recently, it was announced that its
major shareholder Datuk Rozabil has raised his shareholding by 6.7% to
20.45%. We consider this positive, as he consolidates his position &
focuses now on delivery. MACD on the verge of cutting up ; Trading
Buy (TP RM 0.86, based on 13x FY15).
(AK)
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Calls for JULY 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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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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RM4.01
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-1.0%
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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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RM4.78
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+0.4%
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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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RM3.40
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+1.1%
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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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RM4.89
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-3.0%
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PDZ (6254)
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25/7/2014
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RM0.16
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Trading BUY
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RM0.20
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RM0.175
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+9.3%
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PETDAG (5681)
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25/7/2014
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RM19.22
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ACCUMULATE
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RM22.00
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RM18.60
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-3.3%
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TROP (5401)
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30/7/2014
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RM1.44
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ACCUMULATE
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RM1.94
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RM1.43
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-0.7%
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MHB (5186)
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30/7/2014
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RM3.58
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ACCUMULATE
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RM4.10
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RM3.48
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-2.8%
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BRAHIMS (9474)
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31/7/2014
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RM1.77
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ACCUMULATE
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RM2.00
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RM1.76
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-0.6%
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AIRASIA (5099)
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31/7/2014
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RM2.44
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BUY on weakness
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RM2.75
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RM2.44
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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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