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FLOWS
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Thursday, 5 March, 2015
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BUY
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TENAGA, YTL, SIME
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SELL
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SKPETRO, TM, GENTING
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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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TEKSENG (7200)
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05/03/2015
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RM0.545
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BUY
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RM0.65
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Group has 2 core businesses 1) manufacture of PVC products & 2) manufacture
of solar cells and panels contributes 79% and 21% of revenue respectively
which provides both stability and growth. Co’s recent alliance with Taiwan
listed Solartech Energy Corp is positive with an addition of 2 new production
lines (expected in 1Q’15) trebling production capacity to 210MW from 70MW.
With growing demand for solar products, Co expects a 50:50 revenue ratio with
the solar segment being its main growth driver (2 year CAGR of >100%
revenue growth) coupled with recently implemented >30% dividend policy.
Stock is currently oversold with RSI @ 30.9 and macd cutting up. Trading at
only 6.6x FY15 vs peer average of 8x – Buy. (TP RM0.65, 7.8x FY15 EPS). (SPK)
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WELLCAL (7231)
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05/03/2015
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RM1.98
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ACCUMULATE
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RM2.30
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Stock
is a direct beneficiary of the persistent weakness in rubber price and weak
RM vs USD as featured in its stellar 1Q’15 results. Co is also a proxy play
on US economic growth which accounted for 23% of total revenue whilst
supported by diversified revenue source from all 7 continents. With its new
factory slated to commence production in 3Q’15 which will increase capacity
by 50% and its shift to semi-automation will provide an additional boost to
margins going forward. Balance sheet is net cash supporting at 6.1% FY16
dividend yield and trades at an undemanding 15.3x FY16 PE vs 3 year average
of 23x. Accumulate on weakness. (SPK)
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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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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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RM3.25
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0.0%
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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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RM3.48
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+8.0%
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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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RM2.13
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+0.9%
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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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RM23.22
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-1.3%
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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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RM0.895
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-3.8%
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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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RM0.615
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-6.2%
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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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RM2.02
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-1.5%
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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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+2.0%
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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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RM2.64
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+1.5%
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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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RM2.42
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-0.4%
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Performance
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Positive
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Negative
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Neutral
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