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FLOWS
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Monday, 16 November, 2015
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BUY
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AXIATA
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SELL
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KLK, CIMB,
PCHEM
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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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UNISEM ()
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16/11/2015
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RM2.38
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SELL
into STR
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RM2.38
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The share price has risen c25% following our buy
call in mid September. The strong USD during the quarter has helped group
report better than expected 3Q15 results. Although near term prospects remain
promising, we reckon most of the positives have been reflected, with
valuation currently at more than 13x FY16, versus peers of c12-13x, it
appears fairly valued, thus capping potential upside. Industry experts have
turned more conservative on global semiconductor sales, to low single digit
growth for 2015 & 2016. Meanwhile, management has guided for flat q-o-q
topline growth in USD. There is also the concern that group could be affected
by an inventory overhang. Moreover, any strength in the RM vis a vis the USD
would negatively affect earnings. With RSI at 65, we propose a Sell into
current strength.
(AK)
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MALAKOF(5264)
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16/11/2015
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RM1.65
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ACCUMULATE
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RM1.96
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The
recent weakness in share price has brought valuation to an attractive 15X
FY16. Management has allayed concerns that political issues would adversely
impact the power generation industry. It also reiterated its growth strategy
of pursuing M&A, and is open to both local and foreign assets, but added
that this would not affect it’s 70% minimum dividend policy. Capex intensity
should decline in 2016 upon commissioning of the Tanjung Bin Energy plant in
March 2016, of which will likely drive earnings henceforth. Besides the
appeal of strong cash flow & defensive earnings, the expected better
earnings in 2H15, savings in finance cost (redemption of RM1.8b sukuk) and
potential higher dividend payout are catalysts for the stock. Possible
selling pressure from expiry of moratorium shares from its IPO on May 15,
2015 – Accumulate ( TP RM1.96 on 18x FY16).
(AK)
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Calls for NOV 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
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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SENDAI (5205)
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6/11/2015
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RM0.855
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BUY
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RM1.10
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RM0.81
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-5.3%
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CARING (5245)
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6/11/2015
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RM2.05
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SELL
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RM2.00
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-2.5%
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SNTORIA(5213)
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9/11/2015
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RM0.91
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ACCUMULATE
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RM1.20
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RM0.905
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-0.6%
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HEVEA (5095)
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9/11/2015
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RM1.36
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ACCUMULATE
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RM1.56
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RM1.37
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+0.7%
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SCGM (7247)
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11/11/2015
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RM2.94
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TAKE
PROFIT
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RM2.90
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-1.4%
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DIGI (6947)
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11/11/2015
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RM5.20
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ACCUMULATE
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RM6.00
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RM5.08
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-2.4%
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AHEALTH (7090)
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12/11/2015
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RM3.75
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ACCUMULATE
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RM4.20
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RM3.67
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-2.2%
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WEIDA (7111)
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12/11/2015
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RM1.94
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TRIM
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RM1.72
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RM2.01
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+3.6%
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ENGTEX (5056)
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13/11/2015
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RM1.14
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BUY
on weakness
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RM1.14
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RM1.16
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+1.7%
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FLBHD (5197)
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13/11/2015
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RM2.49
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TRIM
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RM2.49
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RM2.47
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-0.9%
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Performance
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Positive
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Negative
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Neutral
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