FLOWS
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Tuesday, 8 September, 2015
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BUY
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AXIATA,
AMBANK, SIME
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SELL
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TENAGA,
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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TGUAN (7034)
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08/09/2015
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RM1.71
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ACCUMULATE
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RM1.92
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After 3 qtrs of disappointing profit performance,
its recent 2Q15 PBT surged 126% QonQ as sales volume & SP improved
from Q1 and higher contribution from the PVC food wrap division. This
division offers the highest margin among all its pdts & the 5th & 6th
lines was commissioned smoothly in 2Q15. The co is also installing 33-layer
nano-technology thin stretch fine lines which are expected to generate
higher margin as experienced by European players with similar technology. The
co is investing further into the food division with the acquisition of
organic food maker, Everprosper Food (another high margin business) with
significant growth expected next year from TGuan’s investment to enlarge
capacity. Thus growth & higher margins are relatively assured for
the next 2-3 years, yet TGuan remains undervalued with
FY12/16 PER of 7.1x & p/bk of 0.51x. Current mkt weakness
is an opportunity to accumulate this stk, (TP: RM1.92 @ 8x FY16 PER)
(PT)
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GENP (3204)
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08/09/2015
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RM9.87
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TRIM
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BB - RM4.60
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With minimal downstream activities, GENP's earnings
have a higher inverse correlation to CPO prices than other CPO players like
KLK, IOI, etc. CPO ytd average price of RM2,186/ton is 12% below last
year’s same period average of RM2,496/ton, and with the sharp drop in CPO
prices in the last 2 months of 13%, GENP will likely be reporting the 3rd
consecutive qtr of below concensus earnings. GENP trades at FY15 PER of
27.9x, above industry's average of 26x & its 5-yr average of 18.3x. Trim
(PT)
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Calls for SEPT WEEK 1 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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WPRTS (5246)
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01/09/2015
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RM4.20
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SELL into STR
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RM3.70
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RM4.22
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+4.2%
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SASBADI (5252)
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01/09/2015
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RM2.25
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ACCUMULATE
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RM1.17
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RM2.30
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-2.2%
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CARING (5245)
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02/09/2015
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RM1.33
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TRIM
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BB - RM1.15
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RM1.62
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-21.8%
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SUPERMX(7106)
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02/09/2015
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RM2.09
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ACCUMULATE
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RM2.60
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RM2.04
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-2.4%
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AIRPORT (5014)
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03/09/2015
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RM4.37
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TRADING BUY
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RM5.00
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RM4.45
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+1.8%
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BJFOOD (5196)
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03/09/2015
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RM2.10
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SELL into STR
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RM1.65
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RM2.10
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+0.0%
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UZMA (7250)
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04/09/2015
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RM1.74
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BUY
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RM2.00
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RM1.85
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+6.3%
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HOMERIZ (5160)
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04/09/2015
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RM0.935
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Trading Buy
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RM1.15
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RM0.945
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+1.0%
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KAWAN (7216)
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07/09/2015
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RM2.36
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ACCUMULATE
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RM3.14
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RM2.37
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+0.4%
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LITRAK (6645)
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07/09/2015
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RM5.16
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TRIM
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BB - RM4.60
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RM5.15
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-0.2%
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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)
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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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Buy
Back
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-
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KAREX (5247)
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07/08/2015
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RM3.10
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RM3.80
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Buy
Back
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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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