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FLOWS
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Monday, 1 June, 2015
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BUY
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DIALOG, SIME
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SELL
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GENTING, RHBCAP
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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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KAREX (5247)
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1/06/2015
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RM3.14
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BUY
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RM3.60
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KAREX RM3.14 - While positioned as the
world's largest condom manufacturer, the group is actively trying to expand
its capacity and market share via 1)m&a of other original equipment
manufacturers (OEM) 2) increasing its production capacity from 4bn pieces to
7bn pieces of the next 3 years 3)growing its own Original Brand Manufacturing
(OBM - Carex) to 20% of its topline from 6% currently. Due to its
non-discretionary nature of the consumption, Karex earnings are non-cyclical
and defensive. Projected 30~% CAGR sustained over next 3yrs to come from the
capacity expansion and growth of its OBM biz as well as the strengthening of
USD (90% rev from overseas) & low rubber prices. Currently valuations
stood at 21x for FY 2016 vs 3 year average of 32x. BUY with a TP of 3.60
based on 24x PE FY16.
(RL)
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WTK (4243)
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1/06/2015
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RM1.01
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Trading BUY
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RM1.20
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WTK (RM1.01) – Currently trading at
attractive valuation of 8.4x for FY16 and 6.9x for FY17 vs a 7 year average
of 15x; P/b only 0.36x. The recent quarter showed relative weakness in orders
from Japan was exacerbated by the bad weather in northern and western Japan
at end-2014, which brought construction to a halt. Looking forward, we expect
orders to normalize towards the end of the year as housing starts seasonally
picks up in the beginning of May. In 1Q15, log prices rose 5% QoQ). On a YoY
basis, prices were up 16%. While group is set to benefit from the weaker
Ringgit currently, earnings growth will also come from Japan's aggressive monetary & fiscal policy are
expected to translate into improved demand for plywood too. MACD pending cut
up; RSI only 25%. Trading BUY with a TP of RM1.20 based on 10x PE for FY16.
(RL)
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Calls for MAY WEEK 3 / WEEK 4 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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25/05/2015
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RM2.58
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BUY
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RM3.20
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RM2.42
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-6.4%
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HUAYANG (5062)
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25/05/2015
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RM2.09
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BUY
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RM2.09
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RM2.06
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-1.5%
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PHARMA (7081)
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26/05/2015
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RM6.98
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TRIM
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RM6.34
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RM6.80
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-2.6%
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GDEX (0078)
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26/05/2015
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RM1.51
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Trading BUY
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RM1.70
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RM1.48
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-2.0%
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LAFMSIA (3794)
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27/05/2015
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RM9.53
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SELL into Strength
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BB - RM8.24
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RM9.50
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-0.4%
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TGUAN (7034)
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27/05/2015
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RM2.00
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Trading BUY
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RM1.70
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RM1.95
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-2.5%
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MISC (3816)
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28/05/2015
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RM8.34
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BUY
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RM9.50
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RM8.30
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-0.5%
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SIME (4197)
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28/05/2015
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RM8.49
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ACCUMULATE
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RM9.30
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RM8.32
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-2.1%
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AFG (2488)
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29/05/2015
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RM4.52
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TRIM
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RM4.00
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RM4.51
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-0.3%
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AMBANK (1015)
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29/05/2015
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RM6.34
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TRIM
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RM6.34
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RM6.30
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-0.7%
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PERFORMANCE
ALERT
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STOCK
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Initiation
dates
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Initiation
price
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Target
Price
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Action
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Returns
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GHLSYS (0021)
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31/3/2015
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RM0.96
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RM1.15
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Take
Profit
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19.7%
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MATRIX (5236)
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3/4/2015
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RM2.73
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RM3.12
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Take
Profit
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14.2%
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SKPETRO (5218)
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15/4/2015
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RM2.40
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RM2.75
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Take
profit
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14.5%
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UNISEM (5005)
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22/4/2015
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RM2.60
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BB
– RM2.30
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Trading
buy
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-
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SKPRES (7155)
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8/5/2015
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RM0.845
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RM1.00
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Take
profit
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19.5%
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ECONBHD (5253)
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8/5/2015
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RM1.02
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RM1.22
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Trading
sell
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12.7%
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EDUSPEC (0107)
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12/5/2015
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RM0.37
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RM0.42
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Trading
sell
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8.1%
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Performance
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Positive
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Negative
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Neutral
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