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FLOWS
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Thursday, 4 September, 2014
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BUY
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AMBANK, GAMUDA, SIME
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SELL
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UEMS, TM, DIGI
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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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PERISAI (0047)
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4/9/2014
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RM1.30
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ACCUMULATE
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RM1.58
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Stock has underperformed, losing c 22% over the
past 4 months. This was partly due to the lack of contract wins that
culminated in the net loss of RM3.4m recorded in 1H14. We reckon that at
current level, most negatives have been priced in. The poor 1H showing was
partly expected given the absence of contribution from the MOPU Rubicone and
pipelay barge E3. Management has guided that any contribution from these
assets are only likely in CY15. However, ahead, there are ample opportunities
for the group’s drilling fleet given the shortage of locally owned rigs and
Petronas affinity for local content. There is also minimal local competition
( aside from UMWOG & Coastal ) and daily charter rates for jack up rigs
are expected to be firm over the medium term with an upside bias. Perisai now
trades at c10.5x FY15, which is a steep discount to UMWOG’s 20x. We
believe the disparity should narrow following recovery of earnings;
Accumulate ( TP RM1.58, based on 13xFY15 ).
(AK)
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BENALEC (5190)
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4/9/2014
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RM0.91
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Trading BUY
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RM1.01
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Stock is trading close to its 5 month low of
RM0.90. This is largely due to the protracted negotiations with 1MY Strategic
Oil Terminal on the signing of the SPA for 1000 acres of land in Tg Piai,
which will lapse on Dec 11, following 3 rounds of extension. We reckon the
selling has been overdone. While waiting for this ultimate catalyst to
materialise, there are still a few positives. Near term catalyst will be the
land sales in Malacca and Pulau Indah as group stilll has about 400 acres of
ready land held for sale. Group’s contract momentum also continues to be on
an upturn, and appears to be ramping up efforts to secure more land sales
& eyeing more reclamation concessions in Malacca. Current valuation not
expensive at 11.4x FY06/16, versus mid cap construction industry PER average
of 12-15x, RSI @ 29; Trading Buy.
(AK)
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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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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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RM4.75
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+1.4%
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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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RM2.09
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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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RM2.59
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-2.3%
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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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RM0.595
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-1.7%
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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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RM3.03
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+2.0%
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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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RM1.78
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-0.6%
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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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RM1.73
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+1.1%
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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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RM1.48
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-0.7%
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Performance
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Positive
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Negative
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Neutral
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