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FLOWS
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Wednesday, 15 April, 2015
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BUY
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GENM, MAYBANK, MUHIBBAH
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SELL
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AXIATA, RHBCAP, SIME
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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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PANTECH (5125)
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15/04/2015
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RM0.73
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ACCUMULATE
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RM0.94
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The
weak FY2/15 results have been well telegraphed by mgt in their last 2
quarters results briefing, the main reason being the cut in spending by their
O&G clients. However, mgt has also guided that orders from RAPID
(indicated in the 2015 Revised Budget to continue regardless of the oil
price fluctuations) may set to flow from this month. Co has bided for
USD200m jobs from RAPID & expects to garner their normal market
share of 40%, amounting to RM280m (a significant 49% of FY14's turnover)
which will be a key catalyst after the drought of the last few quarters.
Pantech is a market leader in the local carbon & stainless steel weld
fittings, long bends & stainless steel pipes, which will benefit from
Petronas' policy of maximizing local contents. The current valuation has
also discounted most of the near-term negativities with forward p/bk of
0.78x, PER of 6.8x, dividend yield of 6.4% & trading near 2-yr low
with potential positive divergence. Accumulate
(PT)
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SKPETRO (5218)
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15/04/2015
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RM2.40
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TRADING BUY
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RM2.75
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Recent developments have reduced SAKP's risk
considerably for potential losses from 1) cancellation of
contracts; 2) non-payment fm clients' insolvency; 3) provisions from lower
oil prices. With 47% of SAKP's RM25.7b order book from Brazil/ S
America, the recent rerating of Petrobras' financials from its
govt's commitment to adhere to restructuring scheme & Royal Dutch
Shell's USD70b purchase of BG Group which endorses the feasibility of the
Brazilian offshore pre-salt basin (where SAKP's PLSVs are operating) are
massive plus points for SAKP. It is also exp that the Shell's acquisition
will spur a spate of M&A deals, similar to 1990, thereby raising the
value of energy assets. BG's nat gas
asset concentration also emphasized the increasing value of nat gas vs
oil E&P assets. SAKP's E&P assets (35% of SOP) are 89% nat
gas & 11% oil. WTI crude has also rallied close to 20% in
less than a month. Major houses & EIA are
forecasting shale oil pdtn to fall from May with some
questioning whether the mkt has underpx the potential deceleration in
output, coupled with increasing demand from the summer driving
season. In addition, the Saudi's de facto energy czar, oil minister
Al-Naimi, has turned positive on oil prices vs talking down oil prices last
yr. In addition, mgt is confident of complying with SC Syariah requiremts by
end-April & returning to Syariah compliant list in the May 15
review. Trading buy
(PT)
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Calls for APRIL WEEK 1 / WEEK 2 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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DIALOG (7277)
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08/04/2015
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RM1.59
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ACCUMULATE
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RM1.90
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RM1.61
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+1.2%
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KLK (2445)
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08/04/2015
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RM23.10
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TRIM
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-
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RM22.70
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-1.8%
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COASTAL(5071)
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09/04/2015
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RM2.91
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BUY
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RM3.50
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RM2.86
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-1.8%
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KIMLUN(5171)
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09/04/2015
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RM1.28
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BUY
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RM1.50
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RM1.30
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+1.5%
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QCAPITA (5123)
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10/04/2015
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RM1.22
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ACCUMULATE
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RM1.34
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RM1.21
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-0.9%
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YTLPOWR (6742)
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10/04/2015
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RM1.54
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Trading BUY
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RM1.80
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RM1.53
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-0.7%
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BARAKAH (7251)
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13/04/2015
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RM0.855
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TRADING BUY
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RM1.10
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RM0.90
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+5.2%
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GKENT (3204)
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13/04/2015
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RM1.26
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Trading BUY
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RM1.50
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RM1.29
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+2.3%
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SNTORIA (5213)
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14/04/2015
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RM1.05
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BUY
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RM1.30
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RM1.07
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+1.9%
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VITROX (0097)
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14/04/2015
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RM3.51
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TRIM
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-
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RM3.59
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+2.2%
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Performance
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Positive
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Negative
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Neutral
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