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FLOWS
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Wednesday, 19 November, 2014
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BUY
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GENTING, CIMB, TENAGA
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SELL
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UEMS, MAYBANK, TM
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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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MRCB (1651)
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19/11/2014
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RM1.50
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ACCUMULATE
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RM2.00
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This Group’s new management
(Gapurna & MRCB) has proven to be effective as it has been successful in
realizing its transformation plans and getting back on into the black
following sales of DUKE as well as strong take up rates from 9 Seputeh, Pj
Sentral, as well as Q Sentral office. YTD, the group has resolved the PJ
Sentral Garden City tussle, injection of Platinum Sentral into Qcap is on
track and more disposal of MRCB’s prime office (Shell Tower & Ascott
Residence) into the Trust to follow imminently in hopes to degear the group’s
balance sheet further. Group’s replenishment of orderbook shouldn’t be a
concern as it currently has an outstanding E&C order book of around
RM1.1bn and unbilled property sales of RM1.8bn which will keep them busy for
at least the next 2 years. The group is asset rich and its pipeline of tenders
and launches are expected to start yielding as soon as FY15. Accumulate on
weakness. TP of RM2.00 which is 20% discount to RNAV before factoring the
MX-1 (RRI land) job flows which would most likely see job flows by the end of
FY15.
(RL)
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OCK (0172)
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19/11/2014
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RM1.42
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BUY
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RM1.70
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OCK has a diversified portfolio of business
where its telecommunication network services of end to end network services
solutions are one of the largest in Malaysia. The group also holds a network
facility provider (NFP) licence which allows them to build, own and rent out
telecommunication towers as well as maintain them which would serve as a
reoccurring income for the group. This factor aligns the group’s mission to
be a beneficiary of the rolling out of 4G mobile network in Malaysia where
the government will be spending RM2-3bn capex a year where RM1.5bn will be
used to build 1000 towers for the next 3 years. Given that OCK has a
well-established track record, we also believe that the group will be able to
secure atleast RM500-600mil worth of jobs. On a side note, the group also
recently diversified into the renewable energy scene and will be bidding for
more solar farm construction projects from the Sustainable Energy Development
Authority Malaysia (SEDA). Currently group is trading at 17x for FY15 PE
which is trading slightly below the telco’s industrial average of 20x. The
next rerating catalyst that would excite the price is the transfer listing
onto the mainboard which is on track to be completed by November followed by
more job flows from neighbouring countries. BUY ahead of its upcoming 1:2
bonus which ex on the 24th of Nov.
(RL)
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Calls for NOV 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
|
TARGET
PRICE
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LAST PRICE
|
% Change
since Initiated
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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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RM1.64
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-1.3%
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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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RM7.17
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-0.5%
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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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RM6.73
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-0.5%
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TAANN(5012)
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14/11/2014
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RM3.93
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ACCUMULATE
|
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
|
RM5.35
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RM4.44
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-1.2%
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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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RM2.99
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0.0%
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WTK (4243)
|
17/11/2014
|
RM1.21
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ACCUMULATE
|
RM1.36
|
RM1.22
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+0.8%
|
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PRESBHD(5204)
|
18/11/2014
|
RM1.51
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ACCUMULATE
|
RM1.84
|
RM1.55
|
+2.6%
|
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SUPERMX(7106)
|
18/11/2014
|
RM2.02
|
Trading BUY
|
RM2.40
|
RM2.03
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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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