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FLOWS
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Friday, 15 August, 2014
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BUY
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AMBANK,
ASTRO, UMW
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SELL
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DIGI, MAYBANK,
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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WTK (4243)
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15/8/2014
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RM1.40
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ACCUMULATE
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RM1.60
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This stock has been consolidating in a symmetrical triangle
pattern since end March’14 with positive daily macd and weekly macd that has
bottomed with a potential golden cross forming on any positive weekly close.
With such anticipating technicals all it needs is for the fundamentals to
confirm its positive outlook for WTK to break out of this consolidation
pattern. We believe its second quarter results (likely to be released on the
last week of this month) will be the catalyst. From WTK’s reported monthly
log production figures, the 6 months YTD figure is 11.5% higher than 1H13.
Given that WTK’s average selling price for log was up 12% yoy in 1Q14 and is
expected to increase further in view of continued strong demand from India
(WTK’s biggest market with 68% of 1Q14 total log exports) for infrastructure
and the ban of log exports in Myanmar from April’14, WTK is poised to report
a strong yoy & qoq performance. Accumulate ahead of the results
especially with WTK trading at attractive PER of 10.2x & 8.4x for FY14
& FY15 respectively.
(PT)
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AIRASIA(5099)
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15/8/2014
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RM2.36
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ACCUMULATE
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RM2.70
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Weekly macd has proven to be
resilient to continue staying in the positive territory. Improving
fundamentals from lower fuel cost as Brent crude has retraced >
10% in less than 2 months from USD113.71/bbl to USD102.07/bbl currently.
Brent’s head and shoulder neckline at USD106.30 and the mid-term critical
support of USD103 have already been broken with the minimum downside at the
USD98 level. MYR, Indonesian rupiah & the Thai baht have also
strengthen by 5.4%, 4.9% & 3.9% respectively versus the USD over
the past 7 months. These 2 factors will greatly assist to reduce the
costs of AirAsia & its associates. Analysts have estimated that a 10sen
strengthening in the MYR vs USD will improve the bottomline by 7%.
AirAsia is also likely to gain market share as MAS rationalises its
routes & reduces capacity. In 2007, when MAS cut capacity by 17%, the
yield of AirAsia shot up 17%. AirAsia trades at cheap valuation with
forward PER of 8.6x & 7.1x for FY15 & FY16 respectively. Its 1Q14
profit margins of 16% is the best amongst its peers in an industry with an
average of -0.3%. Accumulate
(PT)
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Calls for AUGUST WEEK 1/ WEEK
2 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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PRTASCO(5070)
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7/8/2014
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RM1.73
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ACCUMULATE
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RM2.58
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RM1.63
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-5.8%
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JAKS (4723)
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7/8/2014
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RM0.74
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TRADING BUY
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RM0.84
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RM0.71
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-4.1%
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PERDANA (7108)
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8/8/2014
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RM1.86
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ACCUMULATE
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RM2.40
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RM1.84
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-1.1%
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DSONIC (5216)
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8/8/2014
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RM1.86
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TRADING BUY
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RM2.05
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RM1.86
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+0.0%
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DIALOG (7277)
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12/8/2014
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RM1.76
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ACCUMULATE
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RM2.00
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RM1.78
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+1.1%
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SALCON (8567)
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12/8/2014
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RM0.885
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ACCUMULATE
on weakness
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RM1.00
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RM0.89
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+0.5%
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SEM (5250)
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13/8/2014
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RM1.82
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TRIM
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BB- RM1.60
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RM1.83
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+0.5%
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CARING (5245)
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13/8/2014
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RM1.84
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Buy on weakness
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RM2.00
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RM1.85
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+0.5%
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IOICORP (1961)
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14/8/2014
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RM5.00
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TRADING SELL
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BB- RM4.40
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RM5.00
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0.0%
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SYMLIFE (1538)
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14/8/2014
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RM1.12
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ACCUMULATE
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RM1.60
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RM1.12
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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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