HSL (RM1.67) – Stability in
earnings guaranteed for the next two years with its secured order book of
RM1.1bn. 2015 could see its order book improve significantly with a few high
profile contracts in Sarawak expected to be
awarded beginning with the Phase 2 Kuching waste water project where HSL is a
front runner. Other major contract the group is linked to include the RM27bn
Pan-Borneo highway and SCORE relate infrastructure projects. Sitting on a net
cash position of RM122m and a forward PE 9.5x, we rate it a buy as its RSI is
looking to cut up with an immediate target of RM1.85. (DN)
NCB (RN2.25) –
the entrance of MMC as a major shareholder could see fortunes improve for the
ailing port operator as it undergoes an overall revamp in trying to improve port
and logistics utilization. Currently utilization is only 75% but with the new
measures implemented, management is hoping to improve this to 90% and return the
company to profitability. Trading at the low end of its P/Bk valuation band of
0.76x vs historical average of 1x, we rate it a buy with most negatives already
factored into its price. Short term target of RM3.00 (the price MMC paid for its
15.7% stake). (DN)