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FLOWS
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Wednesday, 27 August, 2014
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BUY
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SKPETRO, TM, CIMB
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SELL
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GENTING, UEMS,
MAYBANK
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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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CBIP (7076)
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27/8/2014
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RM4.68
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BUY
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RM5.49
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CBIP (RM4.68) - CBIP is a proxy to the plantation sector that is able
to withstand the CPO price volatilities as plantation companies will still
continue with capex on new mills even in times of low CPO prices. CBIP’s 1H
results came in within consensus and is expected to accelerate in 2H as it
usually recognizes the bulk of its billings in the latter half. Currently
group’s manufacturing division stood at RM488mil asa of end of March 2014
which would drive earnings for more than a year. While current orderbook
stood at approx 160mil, we’re expecting to clinch another 200-300mil worth
this year(where half of the orders were for its retro-fitting division);
paired with an improving margin from its patented technology and a net cash
of 132mil warchest gives it plenty of options for capex in the future.
Upcoming catalyst includes, more contracts coming from Africa, Central/South
America and Papua New Guinea, Indonesia which has a mature areas of oil palm
which resulted in higher demand for palm mills. Similiarly, CBIP has
announced a 1-for-1 bonus issue (data TBA) which could should also limit the
downside to the stock. Currently trading at a only 12.7x PE for FY14 and 12x for FY15 which
is relatively lower sector average of 15x. BUY with a TP of RM5.49 based on
14x PE for FY15 as we expect to see more contract flows in 2H.
(RL)
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UOADEV (5200)
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27/8/2014
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RM2.10
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BUY on weakness
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RM2.40
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UOADEV (RM2.10) – While the group’s set of results
missed street estimates due to weaker than expected billings and higher dev
cost due to new project start ups, the group has launched Southbank
Residences and Sentul Village 2Q14 which will see a conversion into unbilled
sales by 3Q. Looking ahead, new launches in the pipline includes Desa
Business Suites, Kepong V (Phase1) and Jalan Ipoh Land (Phase1) of combined
GDV of RM900m. Also, while not confirmed, news flows regarding the
reintroduction of the DIBS scheme might act as a rerating factor for the
group as they were one of the few names that were significantly affected by
the abolishing of the scheme. UOA has low borrowings and has a net cash
position of RM373mil; in which the group is expected to maintain its div pay
out of 7.1% for FY15. Trading at 7.6x PE and 44% discount to RNAV. We
advocate a BOW amidst short term pressure from its weaker quarterly
results.
(RL)
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Calls for AUGUST 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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SILKHLD (5078)
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20/8/2014
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RM1.11
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BUY
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RM1.25
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RM1.04
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-6.4%
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PANTECH (5125)
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20/8/2014
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RM1.06
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ACCUMULATE
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RM1.25
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RM1.04
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-1.9%
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TM(4863)
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21/8/2014
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RM6.24
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ACCUMULATE
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RM6.80
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RM6.25
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+0.1%
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MISC (3816)
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21/8/2014
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RM6.91
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TRIM
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-
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RM6.94
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+0.4%
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SURIA (6521)
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22/8/2014
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RM2.61
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ACCUMULATE
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RM3.25
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RM2.62
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+0.3%
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FABER (1368)
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22/8/2014
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RM3.30
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ACCUMULATE
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RM3.92
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RM3.52
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+6.6%
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ALAM (5115)
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25/8/2014
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RM1.45
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ACCUMULATE
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RM1.65
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RM1.41
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+2.8%
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AIRPORT (5014)
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25/8/2014
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RM7.91
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TRIM
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BB- RM7.50
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RM7.65
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-3.3%
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UZMA (7250)
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26/8/2014
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RM3.43
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Trading BUY
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RM4.00
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RM3.40
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-0.9%
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SCIENTX(4731)
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26/8/2014
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RM6.30
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TRIM
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BB- RM6.00
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RM6.26
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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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