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FLOWS
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Monday, 13 October, 2014
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BUY
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AXIATA, TENAGA, RHBCAP
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SELL
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DIGI, MAYBANK, SIME
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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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OLDTOWN(5201)
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13/10/2014
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RM1.76
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SELL Into Strength
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BB - RM1.32
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Share price has broken below its strong
support neckline of RM1.80 since 2012. We advocate a sell into strength on
any recovery as company’s current valuation of 14x FY16 is unjustified as it
faces multiple headwinds. Coffee prices have almost doubled from end 2013
with company only locking in cost up till FY15 production. Margin is expected
to remain compressed given the strength of USD, greater competition in the
F&B as well as Manufacturing division. Implementation of GST and subsidy
rationalisation could reduce consumers demand. Analyst projected growth 10%
till MAR FY16 hence we peg PER to 10xFY16 as we see further downside to
estimates. Sell into Strength TP: RM1.32.
(TYK)
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CBIP (7076)
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13/10/2014
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RM4.60
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SELL into Strength
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BB-RM3.73
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Share price is on the verge of breaking below
its recent support of RM4.60. This could see a 55sen downside. We advocate a
sell into strength as share price could be held up due to impending
announcement of its 1-for-1 bonus issue and free warrants dates. Earnings is
only projected to grow at high single digit while currently trades at PER
13.5x FY15 which is a premium to 10 years average of 10x. Key risk remains in
the weaker CPO prices which could delay CAPEX and potential limit by
Indonesia on foreign ownership. Furthermore, CBIP pioneer tax status is
expiring in Feb 2015 which will push up its tax bill substantially. Dividend
yield is expected to remain low as company is expected to incur high CAPEX
from plantation division. Sell into Strength TP: RM3.73 (10x FY15 PER)
(TYK)
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Calls for SEPT OCT WEEK 1 /
WEEK 2 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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ELSOFT (0090)
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3/10/2014
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RM1.68
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Trading SELL
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-
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RM1.49
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-11.4%
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FABER (1368)
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3/10/2014
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RM3.21
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ACCUMULATE
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RM3.50
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RM3.05
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-5.0%
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MASTEEL (5098)
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7/10/2014
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RM1.03
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ACCUMULATE
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RM1.21
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RM0.99
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-3.9%
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MBSB (1171)
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7/10/2014
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RM2.42
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TRIM
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-
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RM2.63
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+8.6%
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MRCB(1651)
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8/10/2014
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RM1.59
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ACCUMULATE
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RM2.00
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RM1.56
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-1.9%
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HARTA(5168)
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8/10/2014
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RM7.02
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TRIM
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-
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RM6.90
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-1.8%
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YINSON (7293)
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9/10/2014
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RM2.89
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BUY
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RM3.30
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RM2.70
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-6.6%
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GLOMAC (5020)
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9/10/2014
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RM1.10
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TRIM
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-
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RM1.11
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+0.9%
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MEDIAC(4502)
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10/10/2014
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RM0.885
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ACCUMULATE
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RM0.94
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RM0.87
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-1.7%
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BJTOTO(1562)
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10/10/2014
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RM3.59
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Defensive BUY
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-
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RM3.57
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-0.5%
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Performance
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Positive
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Negative
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Neutral
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