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FLOWS
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Tuesday, 6 October, 2015
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BUY
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SKPETRO,
MISC, KNM
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SELL
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PCHEM,
DIGI, ARMADA
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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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MUHIBBAH (5703)
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07/10/2015
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RM2.08
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BUY
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RM2.70
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Group together with its JV
partner VA tech Wabag recently won a 950mil
RAPID contract (30 : 70) and this had brought group’s YTD contract win
to 826mil and upped its orderbook to RM2.5bil that will provide earnings
visibility for at least the next 2 years. Company is a good proxy to infra
play in Msia MRT2, LRT3 n highway subcontract jobs other than RAPID that’s
expected be awarded in the 2H. In light of the renewed interest amongst
O&G names as well as the Budget 2016 meeting later this month, we believe
Muhibbah is an attractive prospect to accumulate. Valuations are undemanding
at only 8.3x for FY16 vs 7 years of 20x. Share price formed a flag pattern
and looks to break above; break out neckline seen at RM2.12 with a 50c
upside. BUY with a TP of RM2.70 which implies only 12.5x PE.
(RL)
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KAREX (5247)
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07/10/2015
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RM3.24
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BUY
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RM3.68
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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, global demands cont to grow by
9% to 38bn pieces by 2019. With this
said, Group’s 3 year CAGR looks sustainable at 26 -30~% CAGR as the capacity
expansion and organic growth paired with the stronger USD (90% rev from
overseas) & low rubber prices will continue to benefit the group.
Currently valuations stood at 20.6x for FY 2016 vs 3 year average of 32x.
Weekly MACD is looking to cut up and we think it’s appropriate to accumulate
this defensive stock during these choppy markets. BUY with a TP of 3.68 at
23x PE.
(RL)
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Calls for SEPT WEEK 4 OCT 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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SUNCON (5263)
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30/09/2015
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RM1.15
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BUY
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RM1.40
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RM1.20
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+4.3%
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SIGN (7246)
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30/09/2015
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RM2.39
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Take Profit
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RM2.00
– 2.05
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RM2.40
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+0.4%
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VSI (6963)
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01/10/2015
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RM1.44
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TRIM
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RM1.20
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RM1.42
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-1.4%
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TEOSENG (7252)
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01/10/2015
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RM1.52
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ACCUMULATE
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RM2.30
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RM1.58
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+3.9%
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IOICORP (1961)
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02/10/2015
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RM4.40
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TRIM
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-
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RM4.22
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-4.1%
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GASMSIA (5209)
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02/10/2015
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RM2.48
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TRIM
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-
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RM2.39
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-3.7%
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PETGAS (6033)
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05/10/2015
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RM22.04
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TRIM
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RM20.10
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RM22.70
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+2.9%
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MBSB (1171)
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05/10/2015
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RM1.60
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ACCUMULATE
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RM1.90
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RM1.57
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-1.9%
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WCT (9679)
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06/10/2015
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RM1.45
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SELL into STR
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RM1.33
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RM1.47
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+1.3%
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DRBHICOM(1619)
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06/10/2015
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RM1.41
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SELL
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RM1.28
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RM1.38
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-2.2%
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PERFORMANCE
ALERT
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|||||
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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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AIRPORT (5014)
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03/09/2015
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RM4.41
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RM5.58
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Take Profit
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+25.6%
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UZMA (7250)
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04/09/2015
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RM1.73
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RM2.00
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Take Profit
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+15.6%
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UMWOG (5243)
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28/09/2015
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RM1.30
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RM1.05
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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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