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FLOWS
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Thursday, 26 November, 2015
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BUY
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PCHEM,
CIMB, TENAGA
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SELL
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DIGI, FGV,
IOIPG
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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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DSONIC (5216)
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26/11/2015
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RM1.66
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TRIM
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-
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The share price has added more than
30% over the past 2 months. This was largely on the back of group’s healthy
OB of 5.5m/4.5m/4.3m copies of its MyKad/MyKad consumables/passport photo
pages (as at June 2015), potential extension on existing Mykad & passport
contracts, as well as possible success on its 3 proposals to the Home Affairs
Ministry in relation to Malaysian passports and ICT solutions. We believe the
positives have been largely reflected, with stock now trading at 28x &
21x for FY03/16 & 17 respectively. Earnings growth over the next 2 years
are only projected at c13%pa. Delay in contract awards & earnings
concentration on its MyKad & Passport contracts (c85% of earnings) are
concerns going forward. RSI at 73 – Trim into current strength.
(AK)
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CBIP (7076)
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26/11/2015
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RM1.93
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ACCUMULATE
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RM2.29
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The recent consolidation in share
price has brought valuation down to an attractive 10.5x FY16. The group’s
recognition of progress billings is expected to pick up in 4Q15. Unbilled
sales stood at RM539m as at end June 2015 (vs RM480 at March 2015). YTD, group
has secured RM250m palm oil mill contracts, in line with expectation of
RM350-400m for FY2015, which should provide good earnings visibility for
2016. PBT margins should be underpinned by the low cost of steel (-22% 9 mths
yoy) & which accounts for c80% of total production cost. The new tax
pioneer status, in respect of the zero effluent palm oil mill, is expected to
be approved by MIDA soon. The strong USD is positive as 40% of the OB is
denominated in USD. With MACD on the verge of cutting upwards & improved
optimism on the plantation sector – Accumulate ( TM RM2.29, on 12.5x
FY16).
(AK)
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Calls for NOV 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
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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DOLPHIN (5265)
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18/11/2015
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RM0.785
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ACCUMULATE
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-
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RM0.775
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-1.3%
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MUHIBBAH (5703)
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19/11/2015
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RM2.18
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ACCUMULATE
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RM2.70
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RM2.20
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+0.9%
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JAKS (4723)
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20/11/2015
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RM1.16
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BUY
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RM
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RM1.16
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0.0%
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GAMUDA (5398)
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20/11/2015
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RM4.44
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ACCUMULATE
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RM5.00
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RM4.56
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+2.7%
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CMSB (2852)
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23/11/2015
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RM5.02
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BUY
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RM5.70
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RM5.17
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+2.9%
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EVERGRN (5101)
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23/11/2015
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RM2.14
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BUY
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RM2.50
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RM2.13
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-0.5%
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SIME (4197)
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24/11/2015
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RM8.00
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BUY
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RM9.00
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RM8.07
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+0.8%
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MHB (5186)
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24/11/2015
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RM1.07
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ACCUMULATE
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RM1.42
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RM1.10
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+2.8%
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YTL (4677)
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25/11/2015
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RM1.50
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ACCUMULATE
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RM1.75
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RM1.54
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+2.6%
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IKHMAS (5268)
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25/11/2015
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RM0.705
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TRADING
BUY
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RM0.88
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RM0.695
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-1.5%
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Performance
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Positive
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Negative
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Neutral
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