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FLOWS
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Tuesday, 2 June, 2015
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BUY
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MISC, CIMB
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SELL
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FGV, AXIATA
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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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DRBHICOM (1619)
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02/06/2015
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RM1.66
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BUY on weakness
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RM1.89
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The
recent announcement of an equal JV with China’s Goldstar Heavy Industrial Co
to produce Lotus cars in Fujian, China (investment of up to RM5.84b ) is
positive, given China’s huge market for
luxury and premium auto brands. From the FY 03/15 results, we also
anticipate stronger earnings from DRB’s defence and aviation business, DEFTECH
and CTRM, as well as 34% associate, Honda Malaysia, which will mitigate
Proton's weakness. Global sales of Lotus cars jumped 55% yoy in 2015.
The recent weakness in share price has brought valuation down to 9.2x FY03/16
& more than 50% discount to SOP of cRM3.50, with RSI @ 32- BOW ( TP
RM1.89, based on 10.5x FY16 ).
(AK)
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EVERGRN (5101)
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02/06/2015
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RM1.18
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ACCUMULATE
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RM1.36
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The
group’s 1Q15 earnings rebounded strongly from a net loss in 1Q14 to RM20m,
with QoQ improving 36%. Although revenue was lower (as a result of
restructuring of certain operational facilities), core earnings rebounded due
to lower log & glue costs and higher operational efficiency and cost
savings. We reckon this trend will continue into the year, as the
restructuring plan of the group’s respective plants unfolds. Bottom-line
should benefit from greater operational efficiency post restructuring. Other
favorable external factors include a stronger USD and lower material cost.
Valuation remains attractive at 8x FY16 and P/Bk of 0.8x – Accumulate ( TP
RM1.36, on 0.9x P/Bk ).
(AK)
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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
|
TARGET
PRICE
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LAST PRICE
|
% Change
since Initiated
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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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RM6.52
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-6.6%
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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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RM1.43
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-5.3%
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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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RM9.40
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-1.4%
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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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RM8.34
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0.0%
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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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RM8.30
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-2.3%
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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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RM4.55
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+0.6%
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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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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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RM3.10
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-1.3%
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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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RM1.03
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+2.0%
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PERFORMANCE
ALERT
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STOCK
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Initiation
dates
|
Initiation
price
|
Target
Price
|
Action
|
Returns
|
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GHLSYS (0021)
|
31/3/2015
|
RM0.96
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RM1.15
|
Take
Profit
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19.7%
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MATRIX (5236)
|
3/4/2015
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RM2.73
|
RM3.12
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Take
Profit
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14.2%
|
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SKPETRO (5218)
|
15/4/2015
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RM2.40
|
RM2.75
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Take
profit
|
14.5%
|
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UNISEM (5005)
|
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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SKPRES (7155)
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8/5/2015
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RM0.845
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RM1.00
|
Take
profit
|
19.5%
|
|
ECONBHD (5253)
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8/5/2015
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RM1.02
|
RM1.22
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Trading
sell
|
12.7%
|
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EDUSPEC (0107)
|
12/5/2015
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RM0.37
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RM0.42
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Trading
sell
|
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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