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FLOWS
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Wednesday, 3 December, 2014
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BUY
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SKPETRO, TENAGA, SIME
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SELL
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DIGI, IOIPG,CIMB
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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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MYEG (0138)
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03/12/2014
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RM4.16
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TAKE PROFIT
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-
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Share price recently re-tested its high of RM4.41
exhibiting a short term double-top on expectations that Co will finally
obtain approval of the much delayed custom service tax monitoring (CSTM)
concession expected in Jan’15 where Co will get a fixed fee instead of
revenue sharing. Risks include further delays in approval and will negatively
impact FY’15 earnings. Furthermore, Phase 2 of the CSTM will only commence in
Apr’15 and will only see contribution in FY’16. Co is expected to gear-up to
fund both the CSTM project and Road Safety Diagnostic System (RSDS) which
could have a short-term impact on its dividend policy. Stock is currently
trading at a premium with FY’15 PER of 33.5x vs historical PER band of 18-19x
and RSI overbought @ 70%, we recommend a Take Profit stance. (SPK)
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WELLCAL (7231)
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03/12/2014
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RM1.62
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ACCUMULATE
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RM1.80
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The persistent weakness in natural rubber prices
coupled with the weakening Ringgit vs major currencies are major positives
for Wellcall as it derives 90% of revenue from foreign markets especially the
US/Canada markets which saw fastest growth @ 53% YoY. We also like Group’s
diversified revenue structure as it supplies industrial hoses to a variety of
industries namely manufacturing, construction, mining, automotive, O&G,
F&B and marine. Co’s new plant is expected to be ready mid-2015
increasing capacity by 50% and together with Co’s shift into semi-automation,
we expect earnings and margins to improve moving forward. With a solid
balance sheet (RM41m net cash), undemanding FY’15 & 16 PER of 16.2x &
14.7x supported by dividend yield of 5.6% & 6.2% FY’15 & 16, we would
Accumulate on Weakness. (SPK)
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Calls for NOV WEEK 3 | WEEK 4
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
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% Change
since Initiated
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UZMA (7250)
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25/11/2014
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RM2.50
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TRADING BUY
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RM3.00
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RM1.89
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-24.4%
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ARMADA (5210)
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25/11/2014
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RM1.41
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ACCUMULATE
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RM1.50
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RM1.05
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-25.6%
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FITTERS (9318)
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26/11/2014
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RM0.77
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TRADING BUY
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RM0.88
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RM0.720
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-6.5%
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TUNEINS (5230)
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26/11/2014
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RM1.85
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ACCUMULATE
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RM2.15
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RM1.84
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+0.6%
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TAMBUN (5191)
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27/11/2014
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RM2.19
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ACCUMULATE
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RM2.59
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RM2.11
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-3.7%
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MUHIBBAH (5703)
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27/11/2014
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RM2.47
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TRADING BUY
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RM2.82
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RM2.05
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-17.1%
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UCHITEC(7100)
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28/11/2014
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RM1.41
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ACCUMULATE
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RM1.60
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RM1.37
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-2.9%
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SKPRES (7155)
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28/11/2014
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RM0.725
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BUY
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RM0.84
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RM0.755
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+4.1%
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SPSETIA(8664)
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01/12/2014
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RM3.24
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ACCUMULATE
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RM3.50
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RM3.23
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-0.4%
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MRCB (1651)
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01/12/2014
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RM1.46
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ACCUMULATE
|
RM1.60
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RM01.38
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-5.5%
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Performance
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Positive
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Negative
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Neutral
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