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FLOWS
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Monday, 4th August 2014
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BUY
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SKPETRO,
AMBANK, GENTING
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SELL
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DIGI, MAYBANK, IHH
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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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PESTECH (5219)
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4/8/2014
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RM3.80
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Trading BUY
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RM4.40
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Stock
is the only energy infrastructure company listed on the KLCI. The group is an
alternative play for the power sector for both locally and internationally
(proxy to IndoChina). YTD the group has secured orderbook of RM660mil which
could provide earning visibility for the next 2 years. Looking ahead,
Pestech has tendered for a total of RM1.6b worth of jobs where 880mil would
be awarded within the next 6 months (this includes 3B 1MDB project (worth
RM200m), the high profile RAPID project (RM300m), Sarawak utility project
(RM200m), Northern Utility (RM30m), Sri Lankan project (RM120m) and the
Philippines project (RM30m). Given its sustainable (11-12% net margin) and
CAGR of 57% for the next 3 years, we believe the share price will continue to
trend upwards as more contracts and affiliations with TENAGA continue to
unfold. Post bonus issue (2 for 3), the counters’ share price rose to a high
of RM4.42 before retracing 16% to consolidate around current levels.
Technical indicators are ripe for a rebound and reveals limited downside as
the RSI is currently close to oversold levels. Currently trading at 13.2x PE
for FY15. Trading BUY with an initial TP of RM4.40 and eventually RM5.00 on
rerating after securing more contracts.
(RL)
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TDM (2054)
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4/8/2014
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RM0.985
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ACCUMULATE
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RM1.10
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Long term prospect remain intact as the group is steadily
planting up its Indonesian landbank (37,856 hectares) since 2009 and expect
to fully plant it by 2018. PER valuation is also attractive as it’s trading
at 12.9x for FY15; and pays 3.5% div yield. TDM is a good proxy to the plantation
sector as it trades at a lower valuation than its peers and is highly
sensitive to CPO prices with every MYR100/tonne change affecting its earnings
by 8-9% per annum to its earnings. We feel that the current share price is a
good base as the CPO prices has showed signs of a rebound after touching the
RM2250pmt support; the commodity price was also boosted the weaker
ringgit. With expectations of EL Nino in the 2H14 and commitment by Indonesia
& Malaysia to raise domestic bio-diesel blend, TDM is poised for better
times ahead. Accumulate
(RL)
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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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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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RM4.88
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-3.2%
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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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RM0.17
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+6.2%
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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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RM18.96
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-1.4%
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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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RM1.41
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-2.1%
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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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RM3.46
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-3.4%
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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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RM1.75
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-1.2%
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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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RM2.41
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-1.3%
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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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RM1.76
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0.0%
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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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RM0.70
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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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