Morning Call | 25 March 2015

FLOWS		Wednesday, 25 March, 2015
BUY		GENTING, TENAGA, PBBANK
SELL		SUNWAY, BURSA, CIMB
STOCK ALERT
STOCK NAME	DATE			PRICE		BUY/SELL			TARGET PRICE
JAKS (4723)	25/03/2015			RM0.54		ACCUMULATE			RM0.80
Since the pullback from its recent high of RM0.625, share price has consolidated well above the 100MA. We believe this is an opportunity to accumulate as company has transformed itself from steel pipe manufacturer to contractor for sewage infra as well as construction and property development player which has shown evidence of strong recovery in earning for FY2014 which doubled y-o-y to RM14mil. Outstanding orderbook is estimated at RM1.3bn and expected to last till 2017. Company also has RM2bn of undeveloped GDV. Finalisation of its Vietnam IPP will be a major re-rating catalyst for company which we believe will break thru its technical resistance TP of RM0.80. Accumulate. (TYK)
CHINWEL (5007)	25/03/2015			RM1.49		ACCUMULATE			RM1.75
Share price has consolidated well above its 200MA. Bulk of company’s products are exported overseas with Europe constituting 57%. After completing the acquisition of the remaining 40% in its Vietnam production, earnings is expected to improve in this earnings accretive deal. Annualising its 1H PAT of RM24.9m equates to PE of only 8.9xFY15. Chinwell has a minimum dividend policy of 40% equating to 4.5% dividend yield. Prospect for company is positive as it benefits from translation gains from weaker RM, while 6% GST tax is lower than existing sale tax of 10%. New orders from Germany and France for Do-It-Yourself (DIY) products are expected to expand its margins further. Accumulate with TP: RM1.75 (TYK)
Calls for MARCH WEEK 3/WEEK 4 2015
STOCK	Initiation Dates		Initiation price		BUY/SELL		TARGET PRICE	LAST PRICE		% Change since Initiated
ECONBHD (5253)	18/03/2015		RM0.99		Trading BUY		RM1.22.	RM0.98		-1.0%
GAMUDA (5398)	18/03/2015		RM5.17		BUY		-	RM5.25		+1.5%
BURSA (1818)	19/03/2015		RM8.48		TRIM		-	RM8.58		+1.1%
PRESBHD (5204)	19/03/2015		RM2.35		ACCUMULATE		RM3.14	RM2.29		-2.6%
UZMA (7250)	20/03/2015		RM2.01		BUY		RM2.50	RM1.94		-3.5%
MISC (3816)	20/03/2015		RM8.39		TRIM		-	RM8.42		-0.3%
TAMBUN (5191)	23/03/2015		RM1.84		ACCUMULATE		RM2.10	RM1.84		0.0%
MMCCORP (2194)	23/03/2015		RM2.40		BUY		RM3.00	RM2.52		+5.0%
KNM (7164)	24/03/2015		RM0.635		ACCUMULATE		-	RM0.625 (Ex)		-1.6%
TAANN(5012)	24/03/2015		RM3.90		ACCUMULATE		RM4.50	RM3.90		0.0%

 

 

Performance
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Neutral