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FLOWS
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Wednesday, 4 March, 2015
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BUY
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MISC, IOIPG, TM
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SELL
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DIGI, RHBCAP, PCHEM
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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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SKPETRO (5218)
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04/03/2015
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RM2.60
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BUY on weakness
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RM3.05
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The current weakness is an
opportunity to begin accumulation of SKPetro as it has corrected 14% from
recent high of RM3.01 & retraced 41% of its rally from RM2.02 to RM3.01.
Fundamentally attractive, trading at a forward PER of 9.3x vs market PER of
16.6x & backed by an order book of RM26.2b (sufficient to last for > 3
years on FY14 turnover). It has been stress-tested that even with its rig day
rates down 20% & utilization dropping off to 80% (95% currently), and
valuing the oil services segment at 14x PER, its SOP is RM3.30.
Syariah-compliant funds would add additional demand by May as it is included
back into the SC Syariah list. Accumulate
(PT)
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AIRASIA (5099)
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04/03/2015
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RM2.43
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ACCUMULATE
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RM2.80
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In its Q4'15 results, AirAsia
reported an average jet fuel cost of USD120/bbl which does not reflect the
sharp drop in crude oil price due to legacy hedges. Its CEO, in a recent
interview with CNBC, alluded to an average jet fuel cost for USD80/bbl (-33%
QonQ) for 1Q15. In addition, management is optimising routes by decelerating
capacity growth & allowing cash to grow. It continues to be aggressive in
managing costs, maintaining its cost leadership. Yet, it trades at attractive
valuations of forward 7.8x PER & 1.1x p/bk. It is also trading near its
key support band of RM2.40 - RM2.30. Accumulate
(PT)
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Calls for Jan FEB WEEK 4 /
MARCH WEEK 1 2015
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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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MUHIBBAH (5703)
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25/02/2015
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RM2.21
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ACCUMULATE
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RM2.72
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RM2.26
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+2.2%
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HAPSENG (3034)
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25/02/2015
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RM3.67
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BUY
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RM4.20
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RM3.82
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+4.0%
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KULIM (2003)
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26/02/2015
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RM3.25
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ACCUMULATE
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RM4.00
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RM3.29
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+1.2%
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SUNWAY (5211)
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26/02/2015
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RM3.32
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ACCUMULATE
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RM3.82
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RM3.45
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+3.9%
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IOIPG (5249)
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27/02/2015
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RM2.11
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ACCUMULATE
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RM2.50
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RM2.12
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+0.4%
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PETGAS (6033)
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27/02/2015
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RM23.52
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Sell into Strength
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-
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RM23.10
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-1.8%
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OCK (0172)
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02/03/2015
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RM0.93
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ACCUMULATE
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RM1.10
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RM0.915
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-1.7%
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PERISAI (0047)
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02/03/2015
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RM0.655
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Sell into Strength
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-
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RM0.63
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-3.9%
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TGUAN (7034)
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03/03/2015
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RM2.05
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BUY on weakness
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RM2.80
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RM2.05
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0.0%
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PHARMA (7081)
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03/03/2015
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RM5.73
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Sell into Strength
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BB- RM5.20
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RM5.87
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+2.4%
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Performance
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Positive
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Negative
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Neutral
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