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FLOWS
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Wednesday, 3 September, 2014
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BUY
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AXIATA, AMBANK, MAYBANK
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SELL
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GENM, ASTRO, 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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DIALOG (7277)
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3/9/2014
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RM1.71
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ACCUMULATE
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RM1.90
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Stock
has retraced about 16% since its mid-July’14 high and is trading at strong
support levels of RM1.73-RM1.70. Dialog has continued to execute on its core
business with its 3rd tank terminal project at Pengerang, where Phase 1A is
completed & has started operations in 1QCY14. This deep-water petroleum
terminal will underpin Dialog’s long-term profitability (compounded consensus
3-year eps growth of 25.5%) especially with the continuation of the ensuing
phases of the project. Dialog has also signed a MOU with Concord Energy to
conduct a feasibility study for a proposed dedicated crude oil and petroleum
product storage terminal In Pengerang. These are all potential sizeable jobs
for its EPCC division which will add to the secured jobs on the other phases
of Pengerang terminal and provide earnings feasibility for easily the next 5
years. Over a mid-time frame of 2-3 years, Dialog has a potential re-rating
catalyst which analysts have yet to build into their forecasts. These are
their ventures in the upstream O&G development, i.e. the 50:50 EOR JV
with Halliburton Energy Services Inc. to redevelop the matured Bayan oilfield
off-Sarawak and its Balai marginal field Risk Sharing Contract (RSC) with
Petronas which has already hit first-oil. Accumulate
(PT)
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BARAKAH (7251)
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3/9/2014
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RM1.49
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ACCUMULATE
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RM1.70
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Stock
following the pull-back post the 2Q14 results, Barakah has been consolidating
in a trading band with a downside bias. The 9M14 results were lower as the
pipelay barge, KL101, was idle after it completed its charter with Pertamina,
and from higher front-loaded costs as KL101 was been prepared for the RM1.5b
Pan Malaysian T&I contract which was mobilised end May. KL101 was
previously chartered as an accommodation barge but will now be utilized as a
pipelay barge which will have higher charter rates. Management guided that
they expect @ RM300m top-line contribution to be recognized this year and
they do not foresee a need for any additional third-party vessel for the
contract which means higher margins as there will be a lesser need for subcontractors.
Hence, 2H14 results will show significant improvements compared to the 1H14.
The re-tender of the Saudi T&I job, worth up to RM2.5b, closed in June.
There are only 2 other bidders for this job and the award of the contract is
expected in September. This is a major re-rating catalyst for Barakah if it
comes through. Barakah has a current order book of RM2.38b (a healthy 3.6x
FY14 consensus turnover), a bid book of RM2.6b and trades at FY15 PER of
9.7x. The current market weakness is an opportunity to accumulate the stock.
(PT)
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Calls for AUGUST WEEK 4/ SEPT
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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UZMA (7250)
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26/8/2014
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RM3.43
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Trading BUY
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RM4.00
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RM3.54
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+3.2%
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SCIENTX(4731)
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26/8/2014
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RM6.30
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TRIM
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BB- RM6.00
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RM6.00
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-4.8%
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CBIP (7076)
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27/8/2014
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RM4.68
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BUY
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RM5.49
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RM4.62
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-1.3%
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UOADEV (5200)
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27/8/2014
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RM2.10
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BUY on weakness
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RM2.40
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RM2.11
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+0.4%
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CYPARK (5184)
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28/8/2014
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RM2.65
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ACCUMULATE
on weakness
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RM3.20
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RM2.56
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-3.4%
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HOVID (7213)
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28/8/2014
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RM0.415
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ACCUMULATE
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RM0.45
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RM0.39
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-6.1%
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CENSOF (5195)
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29/8/2014
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RM0.505
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Trading Buy
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RM0.58
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RM0.55
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+8.9%
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KHEESAN (6203)
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29/8/2014
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RM0.605
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BUY
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RM0.71
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RM0.59
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-2.5%
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ARMADA (5210)
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2/9/2014
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RM2.97
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ACCUMULATE
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RM3.50
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RM2.97
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0.0%
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WEIDA (7111)
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2/9/2014
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RM1.79
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ACCUMULATE
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RM2.20
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RM1.79
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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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