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FLOWS
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Thursday, 16 April, 2015
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BUY
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TENAGA, SKPETRO, ARMADA
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SELL
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AXIATA, RHBCAP, 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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PESTECH (5219)
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16/04/2015
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RM4.90
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BUY
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RM5.50
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Recent
emergence as an independent power transmission concessionaire after securing
a 25-year Cambodian contract is extremely positive as it guarantees recurring
income for 25 years (FY18 onwards), in contrast to its existing business of
2-3 years contracts. The US70m EPC portion of this project seems likely given
Co’s majority stake and track record. This concession will also leap-frog
Co’s chances for the 13 other expected projects for transmission lines in
Cambodia within the next 2-years. In the mean time, Co’s RM400m order book
and RM1.7b tender book is healthy and expected to improve as we do not
discount additional contracts from SCORE and rail electrification works
locally and regionally. Trades at only 12.9x FY17 PER with explosive 3.5
years CAGR of 63% growth; Buy.
(SPK)
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TEOSENG (7252)
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16/04/2015
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RM1.92
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ACCUMULATE
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RM2.30
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Recent
retracement in price presents an opportunity to Accumulate a consumer staple
stock. Co is very likely to achieve 3-years CAGR of 17% backed by 1)
management’s target to boost production by 61% in next 5 years, 2) improving
margins on current weakness in corn and soya not abating anytime soon, 3)
expanding export markets to Singapore (1/3 revenue), HK & Brunei and last
but not least, 4) solid backing by major shareholder, Leong Hup enabling
savings on bulk procurement and first pick of top-layer breeds. Also,
management’s target to raise dividend payout to 35% from 20% next 3-years
would see yields at >5%. Trades attractively at 8.5x & 7.3x FY16 &
17 PER respectively (vs 15x peer average), 3.8% & 5.3% FY16 & 17 dividend
yield and is net cash; Accumulate.
(SPK)
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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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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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RM2.95
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+1.3%
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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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RM1.31
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+2.3%
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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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RM1.22
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0.0%
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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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RM1.52
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-1.3%
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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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RM0.935
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+9.3%
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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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RM1.28
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+1.5%
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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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RM1.08
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+2.8%
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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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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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RM0.755
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+3.4%
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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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RM2.60
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+8.3%
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Performance
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Positive
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Negative
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Neutral
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