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FLOWS
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Friday, 5 September, 2014
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BUY
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MAYBANK, SIME, AMBANK
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SELL
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UEMS, DIGI, PCHEM
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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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ANNJOO (6556)
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5/9/2014
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RM1.31
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Trading BUY
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RM1.80
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Share price retraced 13% from its recent high
following the weaker commodity prices (scrap, blast furnace coke and iron
ore), nevertheless, the group’s 2h results came inline making up for 50% of
FY consensus excluding the one of inventory reduction in 1Q. The highlight of
the result shed positive light on the group’s operation efficiencies and
slight pick up in demand the group was able to peg a sustainable EBITDA
margin of 5%. On the same note, the downtrend of lower raw material cost
(Iron ore and coke) gives ANNJOO the opportunity to maintain its industrial leading
margins for scrap as the only blast furnace operator in the country
currently. Additionally, potential trade measures by MITI to impose
anti-dumping duties against cheap steel imports from China imminently (exp
news flow in 2H14) could act as a catalyst for the group. Currently only
trading at the lower range of its PE of 12x for FY15 and 10x for FY16 against
19x 7 yr average. P/b only 0.6x; Div 3.4% (c.); RSI is 47% as it trades at
the 38% retracement neckline. MACD rebounded off the baseline and is pending
a golden cross. Trading BUY on its commendable operations and attractive
valuations. TP of RM1.80 based on 0.8x p/b.
(RL)
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BJAUTO (5248)
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5/9/2014
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RM2.70
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BUY
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RM3.20
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The group’s results next week will most
likely beat consensus as the group has guided for a stronger sales for the
quarter (+3-22%) paired with a sustainable margin to 11~12% on better sales
mix (Mazda3, CX-5, Biante). According to survey, vehicle sales grew +26% QoQ
in Malaysia and +45% QoQ in Philippines just before the implementation of the
GST coming April. Coupled with strong earnings (30% 2-year CAGR) driven by
exciting new launches (Mazda2 facelift, Mazda C-x3, and the CKD version of
the B segment flagship Mazda 3) as well as the completion of a new assembly
facility in Kulim, Kedah, the group should continue to grow in terms of sales
and margin. Valuations appear cheap as it only trades at 11x For FY15 and
9.7x for FY16 at current price. Group is also net cash with RM186mil
(23sen/share) which does not rule out an additional dividend payment in the
near future. Share price chart has created 5 higher highs and will continue
to retest new highs. MACD cutting up; Short term TP of RM3.20 based on 11.5x
FY16 PE vs local competitor average of 12x.
(RL)
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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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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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RM2.63
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-0.8%
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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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RM0.38
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-8.5%
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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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RM0.575
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+13.9%
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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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RM0.60
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-0.9%
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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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RM1.77
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-1.2%
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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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RM1.74
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+1.7%
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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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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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RM1.30
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0.0%
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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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RM0.91
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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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