DRB-Hicom (BUY, TP: RM2.97)
The Next Big, Shining Jewels
§ Existing rare cash jewels: combinations of strong cash cow contributing to stable earnings.
§ Extra jewels harvesting: with multiple sources of new earnings growth from VW contract, Deftech contract, Pos Malaysia acquisition, implementation of regulations amendments and accelerating property developments.
§ Pos Malaysia to add synergistic benefits to DRH-Hicom's existing units. Potential Amendments to Postal Bill Act will allow Pos Malaysia to carry out non-postal related services.
§ Fits into our overall house strategy on consumption play.
§ 3-year EPS CAGR of 21.3% pa with potential upside from realizing the synergistic benefits from Pos Malaysia.
§ Initiate BUY on DRB-Hicom with TP of RM2.97 based on SOP and forecasted net dividend yield of 2.0% for FYE3/12.
FBM KLCI - All eyes on U.S. debt deal
§ Negotiations (on US debt ceiling) are continuing with the world watching.
§ Unless KLCI is able to maintain above last week's low of 1552.7 pts, there's a risk of further downside towards 1542 pts (100-d SMA) and 1536 (50% FR from 1474-1597) pts. Upside resistance levels are 1570 (30-d SMA), 1576 (mid Bollinger band) and all time high of 1597 pts.
Stock to watch - TENAGA: Potential technical rebound
§ There could be more selling pressures on Tenaga amid declining weekly RSI towards stronger support zones around RM6.00-6.13. However, given technical oversold in the hourly and daily charts, the stock may stage a technical rebound.
§ Technical rebound targets are RM6.42 (lower Bollinger band), RM6.50 (200-d SMA) and RM6.65 (50-d SMA). Stop loss below RM6.00.
No comments:
Post a Comment