Monday, August 25, 2014

Morning Call | 25 August 2014


FLOWS
Monday, 25 August, 2014
BUY
SKPETRO, MAYBANK, CIMB
SELL
MAYBANK, DIGI, IHH
STOCK ALERT
STOCK NAME
DATE
PRICE
BUY/SELL
TARGET PRICE
ALAM (5115)
25/8/2014
RM1.45
ACCUMULATE
RM1.65
Seems to have found support at the RM1.44/45 level which has held especially on Friday despite announcing a lower-than-expected 2Q14 results. Alam is consolidating in an ascending triangle pattern since July'13, with the current downwward move a potential final leg of a 5-wave flag consolidation. It is at the lower end of its trading range which provides a lower risk entry level for the stock. In Bursa filings, major shareholders, Hong Leong Co & Caprice Capital bought shares at slightly higher prices recently. Fundamentally, Alam is trading at a discount compared to its mid and small cap peers with FY15 PER & p/bk of 11.9x & 1.5x  versus its peers’ FY15 average PER & p/bk of 13.5x & 2.0x. In addition, Alam is also tipped to be a front runner for a slice of the RM1.8b – RM2.0b of contracts for the supply of underwater services with the acquisition of a 51% stake in a diving support vessel. Accumulate
(PT)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AIRPORT (5014)  
25/8/2014
RM7.91
TRIM
BB- RM7.50
Stock has retraced 76.4% of its loss since 21/7/14 (high of RM8.14), just 3 days before the announcement of its surprisingly bad results for 2Q14, to an intraday low of RM7.25. The volume traded since its low has been significantly lower than when the stock plunged post its results which signifies that this rally is a technical bounce. Hence, the current retracement is an opportunity to fade this rally as the second half of the year will continue to be challenging with the company continuing to miss consensus earnings. KLIA main terminal traffic dropped 9% m-o-m & KLIA2 traffic also fell 8.8% m-o-m in July'14. MH370 & MH17 mishaps are depressing sentiment on air travel and has impinged on Airport's revenue. While 2Q14 results reported a sharp increase in depreciation, amortization, utility cost, staff cost and finance charges on the opening of KLIA2 as some of the costs were capitalized when the KLIA2 was under construction. This sharp increase in costs will persist in the 2nd half, in addition to the share of JV's losses as the company has acquired additional 40% stake in its Turkish associates. Reduce exposure now and reassess to buy back below RM7.50 
(PT)
 
 
Calls for AUGUST WEEK 2/ WEEK 3 2014
STOCK
Initiation Dates
Initiation price
BUY/SELL
TARGET PRICE
LAST PRICE
% Change since Initiated
UMWOG (5243)
18/8/2014
RM4.05
ACCUMULATE
RM4.53
RM4.05
0.0%
PRESBHD (5204)
18/8/2014
RM2.25
ACCUMULATE
RM2.70
RM2.24
-0.5%
SBCCORP (5207)
19/8/2014
RM2.17
Trading BUY
RM2.91
RM2.14
-1.4%
MUHIBBAH (5703)  
19/8/2014
RM3.14
Trading BUY
RM3.50
RM3.04
-3.2%
SILKHLD (5078)
20/8/2014
RM1.11
BUY
RM1.25
RM1.08
-2.8%
PANTECH (5125)  
20/8/2014
RM1.06
ACCUMULATE
RM1.25
RM1.05
-1.0%
TM(4863)
21/8/2014
RM6.24
ACCUMULATE
RM6.80
RM6.25
+0.1%
MISC (3816)  
21/8/2014
RM6.91
TRIM
-
RM6.90
-0.2%
SURIA (6521)
22/8/2014
RM2.61
ACCUMULATE
RM3.25
RM2.57
-1.6%
FABER (1368)  
22/8/2014
RM3.30
ACCUMULATE
RM3.92
RM3.47
+5.1%
 
 
Performance
Positive
 
Negative
 
Neutral