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FLOWS
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Friday, 24 October, 2014
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BUY
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IOIPG, GENM, TM
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SELL
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CIMB, FGV, MAYBANK
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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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HOVID (7213)
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24/10/2014
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RM0.375
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Defensive BUY
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RM0.43
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We like Hovid for its defensive earnings as
this pharmaceutical company covers more than 350 different types of generic
drugs, OTC and dietary supplements which are exported to more than 45
countries worldwide. Moving forward Hovid’s earning growth will be fuelled by
new product launches (10-15new products annually). The Next 5 years would be
an interesting period for the group as they will benefit from the patent
expiration of drugs worth US133bn allowing drugmakers to launch generic
version of this drug to expand sales. Another rerating catalyst for Hovid is
its on-going prospect to achieve US FDA approval for its patented product,
the Palm Tocotrienols (Tocovid), that’s expected to be completed in 2-3
years. Also, the group currently has 4 main projects – (a) capacity expansion
for Ipoh plant (tablet and capsules) that’s expected to be completed by year
and commission by beginning of the year, (b) new automated warehouse, (c) new
R&D centre in Penang and (d) new facility for potent drugs. Currently
stock is only trading at 11.6x FY14 PE and 10.9x for FY15. P/b Value is only
1.6x which is relatively lower than regional average of 4x. Share price found
a base RM0.34-RM0.365. MACD has just cut up and looks like the beginning of a
new uptrend. Defensive Buy.
(RL)
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PADINI (7052)
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24/10/2014
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RM1.67
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BUY on weakness
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RM2.10
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Share price retraced 21.6% from the peak of
RM2.13 to close at RM1.67 yesterday. While the share price has not rebounded
alongside the broad market, this dip was reassuring as it closed the gap seen
in Feb between RM1.68-RM1.71 before halting the free fall. At this price,
group currently trades at 10.7x PE for FY15 and only 9.8x for FY16 (vs 7 year
avg of 11.3x) pegged with an attractive yield of 6.8% and 7.1% respectively,
Padini is net cash of 97mil at the end of the period. While the GST overhang
continue to suppress sentiments towards the consumer market, Padini will
focus on shifting towards its widely successful spinoff value-for-money
segment, Brands Outlet stores, (exp 6 more new stores in FY15) to support
earnings growth. Also the group could see positive sentiments from its move
to allocate its cash into the Islamic deposit account which would return them
into the Shariah-compliant list by October. RSI is 25.6% which is the year
low. BUY on weakness.
Buy in TP around RM1.64-RM1.70.
Cutloss TP of RM1.55 (7% off Buy in).
(RL)
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Calls for SEPT OCT 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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UOADEV(5200)
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15/10/2014
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RM2.10
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TRIM
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-
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RM2.12
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+1.0%
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PMETAL (8869)
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15/10/2014
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RM5.05
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ACCUMULATE
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RM5.90
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RM5.59
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+10.6%
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PERDANA (7108)
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16/10/2014
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RM1.66
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ACCUMULATE
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RM2.40
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RM1.62
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-2.5%
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BURSA (1818)
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16/10/2014
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RM7.95
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TRIM
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-
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RM8.11
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+2.0%
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ASTRO (6399)
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20/10/2014
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RM3.22
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TRIM
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-
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RM3.27
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+1.5%
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BJFOOD (5196)
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20/10/2014
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RM2.75
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ACCUMULATE
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RM3.45
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RM2.75
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0.0%
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PENERGY (5133)
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21/10/2014
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RM2.42
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BUY
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RM2.80
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RM2.42
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0.0%
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TIMECOM (5031)
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21/10/2014
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RM5.00
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SELL
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BB - RM4.30
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RM4.97
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-0.2%
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ARMADA (5210)
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23/10/2014
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RM1.47
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BUY
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RM1.80
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RM1.63
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+10.8%
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PCHEM (5183)
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23/10/2014
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RM5.93
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ACCUMULATE
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RM6.45
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RM5.98
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+0.8%
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Performance
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Positive
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Negative
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Neutral
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