Friday, September 12, 2014

Morning Call | 12 September 2014

FLOWS
Friday, 12 September, 2014
BUY
TENAGA, AXIATA, IOIPG
SELL
MAYBANK, DIGI, PBBANK
STOCK ALERT
STOCK NAME
DATE
PRICE
BUY/SELL
TARGET PRICE
ECONBHD (5253)
12/9/2014
RM0.965
Trading BUY
RM1.20
Group will benefit from more job flows within the next year as it is one of the leaders in the local piling industry with approximately 13% market share locally. Some of the more notable projects that it has undertaken are KVMRT (V1 & V6), Pavilion extension/tunnelling, Tg Bin power plant as well as several housing projects around the Klang Valley and Putrajaya. Till date the group has a strong outstanding orderbook of RM600mil that will last the group for the next 1-2 years and with the KVMRT1 job expected to be completed by October, the group will free up more capacity to take up more jobs. Currently the group has tendered for RM2.0b worth of jobs where the group is in position to select projects that offer a higher margin pegging a margin improvement of 1-2% a year.  Share price performance retraced from the RM1.22 level and has consolidated around the 4 weeks low of RM0.955. MACD turning up and RSI only at its lowest point of 46%. Econpile is only trading at 10x for FY16 and pays 3% div yield at this price. Trading BUY on bottoming technicals and expectations of more job flows moving forward. TP of RM1.20 based on 13.5x FY 16 PE.
(RL)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAMUDA (5398)  
12/9/2014
RM4.83
BUY
RM5.50
While the recent acquisition of the Salak Land (1530 acres; exp to be completed in Oct) is just a part of their land banking activity to boost its earnings for its prop division, we still expect the group to be the biggest beneficiary of more KVMRT2 news flow in 2H. Subsequently, a positive outcome from the SPLASH negotiations deadlock will remove the overhang for the group and better yet, follow up with an anticipated special div payout from the sale of its asset. Looking forward, the group has a few key catalyst in range including the PDP role to be awarded for KVMRT2 (50:50 with MMC), schedule launches and GDV values on the Salak land. Currently group is trading 14x for FY 15 and 12.6 x for FY16 which is relatively lower than its 5 year average of 19x or sector average of 16. Share price currently trading at the 20 SMA support, MACD turning up. BUY with a TP of RM5.50 based on a fair valuation of 16x multiple.
(RL)
 
 
Calls for SEPT WEEK 1/ WEEK 2 2014
STOCK
Initiation Dates
Initiation price
BUY/SELL
TARGET PRICE
LAST PRICE
% Change since Initiated
ANNJOO (6556)
5/9/2014
RM1.31
Trading BUY
RM1.80
RM1.39
+6.1%
BJAUTO (5248)  
5/9/2014
RM2.70
BUY
RM3.20
RM2.93
+11.1%
TENAGA (5347)
8/9/2014
RM12.26
ACCUMULATE
RM13.50
RM12.48
+1.7%
AMBANK (1015)  
8/9/2014
RM6.89
Trading BUY
RM8.00
RM7.00
+1.5%
STEMLFE (0137)
9/9/2014
RM0.465
Trading BUY
RM0.465
RM0.46
-1.1%
HLBANK (5819) 
9/9/2014
RM14.82
TRIM
-
RM14.64
-1.3%
DAYANG (5141)
10/9/2014
RM3.50
ACCUMULATE
RM4.26
RM3.52
+0.5%
PRESBHD (5204) 
10/9/2014
RM2.07
Trading BUY
RM2.40
RM2.03
-2.0%
PERDANA (7108)
11/9/2014
RM1.74
ACCUMULATE
RM1.95
RM1.81
+4.0%
THHEAVY (7206) 
11/9/2014
RM0.83
ACCUMULATE
RM0.94
RM0.83
0.0%
 
 
 
 
 
 
 
Given that our call initiated on the 29/8 to buy Censof (5195) has achieved our target of RM0.58,
we advocate a take profit on the stock.
 
 
Performance
Positive
 
Negative
 
Neutral