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FLOWS
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Thursday, 7th August 2014
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BUY
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TENAGA,
GENM, CIMB
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SELL
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WCT, IJM, SKPETRO
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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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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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The
share price has fallen further following the announcement that the proposed
acquisition in Anglo Slavic Indonesia from PT Anglo Slavic Utama had lapsed.
Although this is unexpected, it is not entirely negative as we expect group
will get back it’s USD 27m cost of investment. The group remains a good small
cap proxy to public infrastructure spending, particularly road maintenance
& public housing. Fundamentals remain healthy – OB of RM1.8b ( for both
road maintenance concessions & construction) and unbilled property sales
of RM180m. We also like its flagship integrated property project “De Centrum”
( redevelopment of the 100-acre Infrastructure University KL land in
Bangi that it acquired at a low price) which has a GDV of about RM10b.
Balance sheet remains strong ( net cash of RM86m or 26s per share) and highly
cash generating road maintenance concession will underpin a likely 10s
dividend, which translates to a 5% yield The ultimate re-rating catalyst for the stock is the renewal of its
road concessions (contribute 25-30% to its revenue) which will expire in
2016. The concession renewal is still pending negotiation with the federal
government ; Accumulate ( TP RM2.58 based on 11x FY15 EPS).
(AK)
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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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The
share price has pulled back c13% from its peak following the recent run up,
on the back of positive news flow on the water crisis stalemate. Although
there is still uncertainty due to delays in the IPP project in Vietnam ( BOT
on a 2x600MW coal power plant ), the immediate term prospect still hinges on
its property development & construction segment which looks promising
with the Selangor water deal being finalized and commencement of Langat 2.
The HoA that was signed last week covers both the proposed RM9.65bil takeover
of assets as well as the implementation of the Langat 2 water treatment plant
(WTP) and its distribution system. The 1st package of Langat 2 has
been awarded and we reckon that the water pipes and reservoir package could
be awarded next, with an estimated value of RM1bil ( four players short-listed
for the water pipe package). Jaks is a potential beneficiary of the water
pipes package as it is the only player capable of delivering large diameter
water pipes on a supply-and-lay basis; Trading Buy.
(AK)
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Calls for JULY WEEK 4/AUGUST
WEEK 1 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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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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RM1.74
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-1.7%
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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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RM2.43
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-0.5%
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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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RM1.77
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+0.5%
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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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RM0.685
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-2.9%
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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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RM3.75
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-1.4%
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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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RM0.985
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0.0%
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KIANJOO (3522)
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5/8/2014
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RM3.06
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ACCUMULATE
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RM3.30
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RM3.06
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0.0%
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HIAPTEK (5072)
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5/8/2014
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RM0.77
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BUY
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RM0.90
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RM0.765
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-0.7%
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CYPARK (5184)
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6/8/2014
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RM2.71
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BUY
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RM3.20
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RM2.69
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-0.8%
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CMSB (2852)
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6/8/2014
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RM3.95
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SELL
into strength
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RM3.50
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RM3.89
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-1.6%
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Performance
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Positive
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Negative
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Neutral
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