|
FLOWS
|
Tuesday, 11 November, 2014
|
|||||||||
|
BUY
|
SKPETRO, IOIPG, TENAGA
|
|||||||||
|
SELL
|
PBBANK, SIME, DIGI
|
|||||||||
|
STOCK ALERT
|
||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||
|
SUNWAY (5211)
|
11/11/2014
|
RM3.19
|
ACCUMULATE
|
RM3.70
|
||||||
|
Share price of the stock retraced 10% after
peaking at RM3.56 following a 5 cent dividend payment as well as GIC (SG
sovereign fund)’s exit which saw their 8.7% stake get snapped up mostly by
GLC’s at the price of RM3.20-RM3.30. Hence, we think it’s a safe level to
accumulate the stock on its recent weakness as we look forward to its listing
of its construction arm in 2Q15. The listing of SCG is a strategic move for
the group to unlock Sunway Construction Group’s (SCG) value and at the same
time offer Sunway’s shareholders a flexibility option (special div with option
to take up its 10-1 distribution in specie that would seemingly translate
into a 6.0% yield from the exercise). We also recommend taking up the SCG
shares ( currently 14x PE) as its prospect remain attractive with RM3.4bil
construction orderbook as of End July and looks to secure more jobs from MRT
lines, LRT as well as more internal jobs from Sunway itself. Technical chart
is poised for a rebound as we see the MACD diverge and the SMA 14/25/50
consolidate while the share price sit just above the 100 days SMA. Accumulate
on weakness.
(RL)
 |
||||||||||
|
BJAUTO(5248)
|
11/11/2014
|
RM3.25
|
ACCUMULATE
|
RM4.00
|
||||||
|
Share price peaked at RM3.74 and have fallen
to current levels after the sharp run up from our call (5/9/2014). We believe
that the sell down was mainly due to technical and we propose investors
accumulate on weakness as the stock offers a decent growth prospect (3 year
CAGR of 30-37% along with 10-12% Ebitda margins) coupled with the falling Jap
yen (which accounts for 50-60% of COGS of imported parts). Fundamental still
intact as it plans to launch more models cum 1H2015 (mazda 3 CKD, Mazda 2,
Mazda CX5). While Mazda has established an impressive market share in the
Philippines, the group plans to replicate its success by venturing into the
Indonesia market moving forward. We propose a step buying method around these
levels until the share price consolidates and find a new base. Immediate
support seen at RM3.20 and RM3.15. ACCUMULATE with a TP of RM4.00 based on
12x FY 15 PE vs peers of 12.4x.
(RL)
 |
||||||||||
|
|
||||||||||
|
Calls for OCT WEEK 4 / NOV
WEEK 1 2014
|
||||||||||
|
STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||
|
SALCON (8567)
|
3/11/2014
|
RM0.74
|
TRADING BUY
|
RM0.82
|
RM0.76
|
+2.7%
|
||||
|
GTRONIC (7022)
|
3/11/2014
|
RM4.52
|
TRADING BUY
|
RM4.99
|
RM4.55
|
+0.6%
|
||||
|
SOP (5126)
|
4/11/2014
|
RM5.75
|
ACCUMULATE
on weakness
|
RM6.20
|
RM5.71
|
-0.7%
|
||||
|
MMCCORP (2194)
|
4/11/2014
|
RM2.58
|
BUY
– closer to RM2.30
|
RM2.80
|
RM2.45
|
-5.1%
|
||||
|
PARKSON (5657)
|
5/11/2014
|
RM2.52
|
BUY
|
RM3.10
|
RM2.44
|
+3.2%
|
||||
|
SIME (4197)
|
5/11/2014
|
RM9.68
|
BUY
|
RM10.50
|
RM9.64
|
-0.5%
|
||||
|
KPS (5843)
|
7/11/2014
|
RM1.75
|
Take Profit
|
RM1.58
|
RM1.62
|
-7.5%
|
||||
|
SKPETRO (5218)
|
7/11/2014
|
RM3.14
|
BUY
|
RM3.75
|
RM3.14
|
0.0%
|
||||
|
E&O(3417)
|
10/11/2014
|
RM2.55
|
ACCUMULATE
|
RM3.36
|
RM2.50
|
-2.0%
|
||||
|
KIMLUN (5171)
|
10/11/2014
|
RM1.42
|
SELL
|
-
|
RM1.42
|
0.0%
|
||||
\
|
Performance
|
|
|
Positive
|
|
|
Negative
|
|
|
Neutral
|
|
