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FLOWS
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Monday, 29 September, 2014
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BUY
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ASTRO, SKPETRO, TENAGA
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SELL
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AMBANK, DIGI,
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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GADANG (9261)
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29/9/2014
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RM1.73
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Trading BUY
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RM2.10
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Group has secured 1.3bn worth of construction
orderbook (KVMRT, RAPID, Shah Alam hospital). Group has a tender book of 6bn
(MEX ext, KIDEX, WCE, DASH & more RAPID roadworks). Unbilled sales of
415mil from its property segment which would drive earnings growth for the
next 2-3 years. Group’s valuations is undemanding at only 5.77x PE for FY15.
Group is net cash of 30.5mil or 15.5sens/share. We like this small cap group
for its current track record as well as exposure to the megaproject launches
in the next couple of years. BUY ahead of 2015 budget where govt will shed
light on more mega projects.
(RL)
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TAANN (5012)
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29/9/2014
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RM3.87
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Trading BUY
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RM4.50
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Currently trading at 11.6x
FY15 PE vs its 7 year average of 17x as well as peers of 16x. Group has a
young plantation profile (average approximately 6 years) and expect to post
double digit production growth (10-20%) for its FFB for the next few years.
CPO prices will also see limited downside in the medium term after the govt
imposed zero export tax for the month of SEPT and OCT to reduce inventory;
this is also paired with the low production quarter (Sept – Dec) which would
trim inventory further. Given its sensitivity to CPO price (7-9% increase to
eps for every MYR100/tonne) and weakening Ringgit, we feel that the stock
price poses a small downside risk vs returns, thus it deserves a Trading Buy
with a TP of RM4.50 based on 13.6x.
(RL)
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Calls for SEPT 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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GTRONIC (7022)
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22/9/2014
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RM4.81
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ACCUMULATE
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RM5.20
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RM4.70
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-2.3%
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TMCLIFE (0101)
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22/9/2014
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RM0.525
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ACCUMULATE
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RM0.60
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RM0.64
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+21.9%
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KENANGA (6483)
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23/9/2014
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RM0.72
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ACCUMULATE
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RM0.80
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RM0.71
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-1.4%
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IWCITY (1589)
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23/9/2014
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RM1.63
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TRADING BUY
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RM1.80
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RM1.60
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-1.9%
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SPSETIA (8664)
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24/9/2014
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RM3.25
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ACCUMULATE
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RM3.60
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RM3.43
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+5.5%
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PCHEM (5183)
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24/9/2014
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RM6.23
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TRADING BUY
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RM6.80
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RM6.24
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+0.1%
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SUPERMX (7106)
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25/9/2014
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RM2.24
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ACCUMULATE
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RM3.10
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RM2.25
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+0.4%
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WASEONG (5142)
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25/9/2014
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RM1.76
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BUY
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RM2.20
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RM1.77
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+0.5%
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WCT (9679)
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26/9/2014
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RM2.18
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Trading BUY
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RM2.40
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RM2.18
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0.0%
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NAIM (5073)
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26/9/2014
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RM3.51
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ACCUMULATE
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RM4.75
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RM3.56
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+1.4%
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Given that
our call initiated on the 22/9 to buy TMCLIFE (0101) has achieved our target
of RM0.60,
we advocate a take profit on the stock.
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Performance
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Positive
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Negative
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Neutral
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