Poised For a New Quantum Leap
Initiating Coverage
We initiate coverage on GDEX with a BUY call and DCF-derived MYR2.42 TP (a 20.4% upside), valuing the stock at an implied 81x FY15F P/E. It has seen 10 years of strong earnings growth, which is expected to remain resilient in the coming years on the capacity expansion of its express delivery service and logistics arm as the drivers. Opportunity in the AEC is a key catalyst to drive GDEX’s earnings higher.
Tambun Indah (TILB MK, BUY, TP: MYR2.50)
Land Deal Terminated
Company Update
Tambun has terminated the deal to acquire 209.5 acres of land, as certain terms were not met. Although this could disappoint the market, we still like Tambun for its solid management team and >500-acre land at Seberang Perai. Moving forward, management can still embark on other landbanking opportunities. For now, without the new land, we lower our TP to MYR2.50 (14.7% upside). Maintain BUY.
Tune Ins Holdings (TIH MK, BUY, TP: MYR3.00)
Rejuvenating Its Multi-Channel Growth
Results Preview
We expect no major surprises from Tune Ins’ 3Q14 results, as passengers carried by its airline partners are on track to meet our full-year forecast, which had factored in lower travel demand. Reiterate BUY and MYR3.00 TP (24x FY15F P/E, 42% upside). We see a long-term transformation in this growth stock, buoyed by its new leadership, a swift global expansion and sharpening of its multichannel capabilities.
Economic Highlights - Industrial Production And Manufacturing Sales Moderated In September, Pointing To More Moderate Real GDP Growth In 3Q (Published on 11 Nov 2014)
Industrial production moderated to 5.4% YoY in September, from 6.5% in August. The reading was slightly lower than the median estimate of a 5.5% gain as a modest increase in export demand dampened manufacturing activities. Along with a slower growth in electricity production, industrial activities experienced a more moderate growth during the month. These were, however, mitigated by a faster increase in the production from the mining sector. Cumulatively, the increase in industrial activities weakened to 4.1% YoY in 3Q (2Q: +5.9%).
No comments:
Post a Comment