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FLOWS
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Monday, August 10, 2015
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BUY
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UEME,
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SELL
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TENAGA, TM, WPRTS
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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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PCHEM (5183)
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11/08/2015
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RM6.01
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TRIM
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BB RM – 5.30
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The share price has remained fairly well supported
within its trading band of RM6-6.50 despite Q2 results trailing estimates.
The shortfall was mainly due to lower ASPs, plant utilization, spreads and
associate contributions. We are taken aback by the steep QoQ decline in plant
utilization from 90% to 78%, despite management’s guidance that it would
recover post FY14. These negatives may overwhelm the positive impact of a
stronger USD and higher sales volume going in 2HFY15. Trading at 15.8x FY16 (vs
historical fwd PE of 14.6x & regional peers average of 14.2x), we believe
most positives have been reflected. Management has guided a challenging
outlook for 2105. We expect the tough operating environment, valuation &
overall poor market sentiment to limit the stocks upside - Trim ( buyback at
RM5.30, 14x FY16 ).
(AK)
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SCIENTEX (4731)
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11/08/2015
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RM7.20
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TRIM
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BB – RM6.60
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The
share price has gained c10% over the past month, largely on the back of its
long term earnings prospects that leveraged on the expansion strategies of
both the manufacturing & property divisions, sturdy balance sheet &
committed management team. However, on the flip side, it is difficult to
estimate contributions pending further clarity on potential uptake due to the
massive scale of expansion. Also, manufacturing earnings growth will only kick
in from FY17 onwards. The property segment (which made up 77% of 9M15
earnings) outlook remains unexciting in the near term (especially in Johor)
due to tighter lending policies and uncertain market uptakes. Trading at 9x
FY07/16 and given the poor market sentiment, we recommend trimming as
valuation are fairly rich while potential earnings risks from the property
division remains – Buyback at support of RM6.60.
(AK)
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Calls for AUGUST 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
|
TARGET
PRICE
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LAST PRICE
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% Change
since Initiated
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XINHWA (5267)
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03/08/2015
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RM1.28
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TRIM
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RM1.04
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RM1.03
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-19.3%
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PTARAS (9598)
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03/08/2015
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RM3.78
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ACCUMULATE
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RM4.20
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RM3.60
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-4.8%
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LUXCHEM (5143)
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04/08/2015
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RM1.16
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BUY
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RM1.35
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RM1.07
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-7.9%
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LAFMSIA (3794)
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04/08/2015
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RM9.76
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TRIM
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-
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RM9.10
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-6.8%
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SUPERMX (7106)
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05/08/2015
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RM2.46
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TAKE PROFIT
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RM2.05
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RM2.17
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-11.8%
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PARAMON (1724)
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05/08/2015
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RM1.93
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ACCUMULATE
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RM2.50
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RM1.79
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-7.3%
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KAREX (5247)
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07/08/2015
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RM3.55
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TAKE PROFIT
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BB RM - 3.10
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RM3.31
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-6.8%
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HOVID (7213)
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07/08/2015
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RM0.485
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BUY
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RM0.555
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RM0.445
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-8.3%
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PESTECH (5219)
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10/08/2015
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RM5.91
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TAKE PROFIT
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BB RM – 5.26
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RM5.69
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-3.8%
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GENTING (3182)
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10/08/2015
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RM7.98
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SELL
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BB – RM7.20
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RM7.88
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-1.3%
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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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TOPGLOV (7113)
|
08/06/2015
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RM5.47
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-
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Trading
Sell
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-
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XINHWA (5267)
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03/08/2015
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RM1.03
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1.20
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BB
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-
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Performance
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Positive
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Negative
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Neutral
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