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FLOWS
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Monday, 17 November, 2014
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BUY
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PCHEM, SKPETRO, CIMB
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SELL
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MAYBANK, PCHEM,
MAXIS
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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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FABER (1368)
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17/11/2014
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RM2.99
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ACCUMULATE
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RM3.30
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Faber has fallen 20% from
recent high and is trading near strong support levels of @ RM3.00. Its
concession in hospital services & highway maintenance will provide a
steady stream of income with decent dividend yield in a current risk-averse
Malaysian market. The recent acquisitions of the highway maintenance business,
at around 9x historical PER (vs FY13 PER of 17.5x), is earnings accretive to
Faber. Post acquisitions, FY15 PER is expected to drop significantly to 13.4x
from 28x in FY14. Forward dividend yield is expected to increase to more than
4% given the low capex requirements of its activities. Accumulate
(PT)
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WTK (4243)
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17/11/2014
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RM1.21
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ACCUMULATE
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RM1.36
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The current market weakness
is an opportunity to established a position in this stock. WTK is severely
undervalued with FY15 PER of 7.7x vs historical average PER of 15.8x. Its
prospective p/bk is only at 0.39x, providing ample buffer for unforeseen
changes in operating parameters & limited downside with such trough
valuations. With the Indian economy strengthening on reforms & infrastructure
spending by the Modi govt , WTK is assured of demand from its biggest export
market with 68% of its Q1 total log exports. Average log prices have also
increase by 11.5% in 1H14 and is expected to remain firm for the rest of the
year. Its mostly pure timber exposure ensure earnings improvement would not
be diluted by weaker contributions from plantation as seen in some of its
peers. Japan's aggressive monetary & fiscal policy are expected to
translate into improved demand for plywood too. Accumulate
(PT)
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Calls for NOV 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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E&O(3417)
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10/11/2014
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RM2.55
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ACCUMULATE
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RM3.36
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RM2.51
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-1.6%
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KIMLUN (5171)
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10/11/2014
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RM1.42
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SELL
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-
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RM1.39
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-2.2%
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SUNWAY (5211)
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11/11/2014
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RM3.19
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ACCUMULATE
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RM3.70
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RM3.27
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+2.5%
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BJAUTO(5248)
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11/11/2014
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RM3.25
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ACCUMULATE
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RM4.00
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RM3.48
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+7.0%
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DAYANG (5141)
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12/11/2014
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RM2.82
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ACCUMULATE
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RM3.30
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RM2.80
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-0.8%
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SEM (5250)
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12/11/2014
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RM1.66
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TRIM
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-
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RM1.65
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-0.7%
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TM (4863)
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13/11/2014
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RM7.20
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TRIM
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BB – RM6.80
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RM7.10
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-1.4%
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UMCCA(2593)
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13/11/2014
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RM6.77
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BUY
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RM8.00
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RM6.77
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0.0%
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TAANN(5012)
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14/11/2014
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RM3.93
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ACCUMULATE
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RM4.55
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RM3.88
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-1.2%
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PHARMA(7081)
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14/11/2014
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RM4.49
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ACCUMULATE
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RM5.35
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RM4.44
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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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