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FLOWS
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Tuesday, 8 December, 2015
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BUY
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YTL,
PCHEM, SKPETRO
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SELL
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AXIATA,
MISC
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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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PADINI (7052)
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10/12/2015
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RM1.87
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TRIM
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-
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The
share price has surged c18% following Q1FY16 results which beat estimates. Q1
numbers were higher mainly due to the Hari Raya festivities in July and
opening of new Padini Concept Stores & Brand Outlet Store in the newly
refurbished Sunway Putra Mall. We reckon the positives & fundamentals
have been reflected. The group sources c65% of its products from China (in
RMB) and the remaining in USD, thus we can expect margins to come under
pressure given the Ringgit’s depreciation. It also continues to face strong
competition from a large pool of retail brands domestically. Consumer sentiment
continue to be dampened by the GST implementation while discretionary
spending is further hindered by imported inflation & lower disposable
income arising from higher living cost. Upside could be limited with
valuation at 12x FY16 and RSI @73 – Trim.
(AK)
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TEOSENG (7252)
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10/12/2015
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RM1.53
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ACCUMULATE
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RM2.15
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Share
price has consolidated post 9MFY15 results which were flat, due to lower egg
prices. Management expects prices to rise in Q4, in tandem with yearend
festivities. The group’s expansion plans remain on track, meeting production
capacity of 3.3m eggs /day. Demand from Singapore, to which it exports c30%
of its egg production (which allows for higher pricing following the weaker
MYR/SGD), remain robust. The group’s superior margins are expected to remain
too, as any price weakness may be offset by lower operating expenses
given the lower corn & soybean costs (forward purchases), use of natural
gas for egg tray production & bio gas plants to reduce electricity expenses.
There is minimal impact from minimum wage hike next year as most workers are
paid around the RM1400 level. Trading at an undemanding 7x FY16 ( vs PE
of c15-20x for consumer stocks) – Accumulate ( TP2.15 on 10x FY16)
(AK)
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Calls for DEC 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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KIMLUN (5171)
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3/12/2015
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RM1.32
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ACCUMULATE
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RM1.62
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RM1.44
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+9.0%
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ASIAFLE (7129)
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3/12/2015
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RM4.71
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TRIM
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-
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RM4.47
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-5.1%
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AFG (2488)
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4/12/2015
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RM3.57
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ACCUMULATE
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RM4.00
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RM3.65
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+2.2%
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TIMECOM (5031)
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7/12/2015
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RM7.05
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BUY
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RM8.00
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RM6.99
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-0.9%
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POS (4634)
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7/12/2015
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RM3.36
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BUY
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RM4.00
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RM3.03
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-9.9%
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AEONCR (5139)
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8/12/2015
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RM12.18
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ACCUMULATE
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-
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RM12.10
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-0.7%
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PRTASCO (5070)
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8/12/2015
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RM1.58
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BUY
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-
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RM1.58
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0.0%
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HSL (6238)
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9/12/2015
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RM1.89
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ACCUMULATE
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RM2.30
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RM1.88
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-0.6%
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AXIATA (6888)
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9/12/2015
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RM6.09
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SELL
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-
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RM6.04
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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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