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FLOWS
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Friday, 19 September, 2014
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BUY
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SKPETRO, GENM, IOICORP
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SELL
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MAYBANK, DIGI, CIMB
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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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POS ( 4634)
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19/9/2014
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RM4.70
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ACCUMULATE
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RM5.30
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The
share price has retraced c10% following the release of its Q1 06/14 results
which was considered lower, making up only 16% of consensus. The lower
earning registered was partly due to higher operating, finance costs &
tax rate. We believe the negatives have been reflected in the price. On
closer scrutiny, it’s worthy to note that Pos’s key focus remain intact in
the Q1 results – the courier arm continued to grow with revenue &
operating profit improving 21% and 23% yoy respectively, and the retail
business (led by Ar Rahnu ) posting revenue growth of 10%. Pos is looking to
grow its profitable courier and logistics segment by leveraging on its wide
Pos Laju network as well as synergies with KL Airport services. Group is also
strengthening its retail segment with the growth of its Islamic pawn broking
business. It appears to be staying on course to implementing & delivering
it’s 5-year Strategic Plan initiated in 2012. Besides these, it’s potential
land-bank development could be a major re-rating catalyst. Valuation
undemanding at 15.2x FY06/15 – Accumulate ( TP RM 5.30 based on 17x FY15).
(AK)
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TITIJYA (5239)
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19/9/2014
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RM2.44
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ACCUMULATE
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RM2.90
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In
tandem with the weaker market, the share price has drifted c15% lower over
the past 2 months and is now sitting close to its 3-month support level. This
was despite group posting FY06/14 results which were within estimates. We
consider this a good opportunity to accumulate. We remain bullish on its
prospect moving into 2015 where we expect new sales to rise further to c
RM550-600m. Conversions of booking received for the first 2 blocks of H2O
will be captured in the period. This is further backed by a strong pipeline
of launches that will likely include new launches/phases for Embun Kemensah,
H2O as well as Trio Service Apartments in Shah Alam. It’s recent JV to
co-develop a mixed development project in Jalan Eaton, KLCC (GDV RM2.5b)
represents the group’s first foray into the high end KLCC residential market.
We are also positive on it’s increasingly robust land banking momentum, which
has thus far helped to contribute to it’s higher than average gross margins
of c35% ( vs industry average 20-30%). Trading at a steep 45% discount to
RNAV, we consider this unjustifiable given it’s good track record, strong
pre-sales pipeline, healthy Balance Sheet, prolific land banking & robust
EPS growth of more than 20% for FY15-17; Accumulate. ( TP RM2.90, based on
35% disc to RNAV)
(AK)
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Calls for SEPT WEEK 2/ WEEK 3
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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PERDANA (7108)
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11/9/2014
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RM1.74
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ACCUMULATE
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RM1.95
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RM1.78
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+2.2%
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THHEAVY (7206)
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11/9/2014
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RM0.83
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ACCUMULATE
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RM0.94
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RM0.810
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-2.5%
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ECONBHD (5253)
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12/9/2014
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RM0.965
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Trading BUY
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RM1.20
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RM1.01
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+4.6%
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GAMUDA (5398)
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12/9/2014
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RM4.83
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BUY
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RM5.50
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RM4.80
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-0.7%
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BARAKAH (7251)
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15/9/2014
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RM1.40
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ACCUMULATE
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RM1.60
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RM1.36
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-2.9%
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BAT (4162)
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15/9/2014
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RM73.36
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Trading SELL
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RM66.00
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RM70.30
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-4.2%
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MYEG (0138)
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17/9/2014
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RM3.28
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SELL
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BB – RM2.80
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RM3.20
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-2.5%
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BSTEAD (2771)
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17/9/2014
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RM4.98
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SELL
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RM4.50
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RM4.94
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-0.9%
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SOP (5126)
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18/9/2014
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RM5.85
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ACCUMULATE
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RM6.60
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RM6.00
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+2.5%
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PRTASCO (5070)
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18/9/2014
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RM1.71
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ACCUMULATE
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RM2.40
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RM1.70
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-0.6%
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Given that our call initiated on the 5/9 to buy
BJAUTO (5248) has achieved our target of RM3.20,
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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