KUALA LUMPUR (Feb 3): Trading volume on Bursa Malaysia could taper off on Friday, ahead of another four-day holiday next week.
Traders and investors could be seeking to square off their positions on Friday rather than wait for the market to resume trading on Feb 8 amid concerns about the euro debt issue, though it seem to be showing much progress.
European shares steadied after hitting a six-month high on Thursday as strong gains in miners on merger talks between Xstrata and Glencore were offset by a sell-off in defensives, with Unilever down on poor outlook.
Reuters reported analysts saying this week's key economic indicators could set the market's near-term direction, as encouraging numbers after recent upbeat global manufacturing data might cement the view that the global economy was gradually recovering.
On Thursday, trading volume was high on Bursa Malaysia with nearly 2.6 billion units transacted in a market which also saw active trade in smaller capitalised stocks.
Among the stocks which could see trading interest are MALAYSIA BUILDING SOCIETY BHD [] (MBSB), MAXBIZ CORPORATION BHD [], Hibiscus Petroleum Bhd, DBE Gurney Resources Bhd and KNUSFORD BHD [].
MBSB posted a stellar set of earnings in the fourth quarter ended Dec 31, 2011, with net profit up 554% to RM83.82 million from RM12.81 million a year ago. Its earnings were boosted by higher net income from Islamic banking operations via the expansion of personal financing and also lower taxation. Profit before taxation and zakat was RM101.19 million compared with RM72.43 million.
For FY ended Dec 31, 2011, its earnings jumped 122.8% to RM325.43 million from RM146.02 million in FY10. Its revenue rose 64.8% to RM1.269 billion from RM769.94 million.
Maxbiz Corporation Bhd said it was informed by Bursa Malaysia Securities Bhd that the latter had rejected its application for extension of time to submit the regularisation plan to the authorities.
“The board is currently deliberating on the decision made by Bursa Securities and will announce the next course of action in due course,” it said.
Earlier, a Bursa Securities circular said trading of Maxbiz’s securities faces the threat of suspension from Feb 14 unless it can submit an appeal before Feb 13.
A Bursa Malaysia Securities circular said on Thursday that Maxbiz failed to submit its regularisation plan to the Securities Commission or Bursa Securities Bhd for approval within the timeframe stipulated.
Maxbiz, could still however, submit an appeal to Bursa Securities on or before Feb 13. Any appeal submitted after the appeal timeframe would not be considered by Bursa Securities.
Hibiscus Petroleum clarified it posted net losses of RM1.27 million for the quarter ended Sept 30, 2011 instead of net profit.
In its amended financial statements, it said the net losses were due to the higher expenditure. It also said it posted net losses of RM13,000 in the quarter ended Sept 30, 2010 instead of a net profit of RM13,000.
DBE Gurney Resources announced its group managing director Ding Seng Huat disposed of 32 million shares or 4.75% stake for 11.56 sen each on Thursday.
Knusford Bhd’s associate CBD Development Sdn Bhd secured two contracts from the Johor state economic planning unit to undertake the transformation plan for the state capital.
Knusford said CBD received a letter regarding the transformation of Johor Bahru central district and the relocation of the city hawkers to a new building.
CBC Development would be appointed master developer for the transformation project, which would also hinge on a detailed proposal and business model.
[theedgemalaysia]
Showing posts with label StockToWatch. Show all posts
Showing posts with label StockToWatch. Show all posts
Friday, February 3, 2012
Tuesday, January 17, 2012
Stocks to watch 20120117: Proton, DRB-Hicom, Hovid, Bumi Armada, HeiTech Padu, Kimlun
Written by Joseph Chin of
Monday, 16 January 2012 20:25
KUALA LUMPUR (Jan 17): The strong corporate newsflow would provide excitement to the markets on Tuesday, despite the cloud of uncertainties from the eurozone.
Reuters reported European stocks were slightly higher in a choppy session on Monday, with weakness in banks after a mass credit downgrade of euro zone countries offset by a rise in defensives, such as pharmaceuticals.
Late on Friday, Standard & Poor's cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and France, Austria, Malta, Slovakia and Slovenia by one notch each.
At Bursa Malaysia, the FBM KLCI fell below the 1,510- level in line with the overall weaker investor sentiment at key regional markets following Standard & Poor’s cutting the sovereign credit rating of nine of the euro zone's 17 countries.
The FBM KLCI fell 14.01 points to 1,509.06 in a broadly weaker market.
Stocks which could see trading interest area PROTON HOLDINGS BHD [], DRB-HICOM BHD [], HOVID BHD [], Bumi Armada Bhd, HEITECH PADU BHD [] and Kimlun Corp Bhd.
Proton and DRB-Hicom resume trading after a one-day suspension. As expected, Khazanah Nasional Bhd announced it was divesting its 42.72% Proton stake to DRB-Hicom for RM5.50 per share or RM1.291 billion cash.
Upon completion of the sale and purchase agreement, DRB-Hicom will be obliged to undertake a mandatory general offer on the remaining Proton shares.
Bursa Malaysia Securities has lifted Hovid Bhd from the Practice Note 17 status with effect from Tuesday.
Bumi Armada Bhd’s subsidiary, Bumi Armada Navigation Sdn Bhd has secured a RM155 million contract from Petróleo Brasileiro S.A. The contract was to provide one anchor handling towing support (AHTS) vessel to Petrobras in its hydrocarbon and mining activities in the Brazilian continental shelf.
HeiTech Padu has secured a RM63.60 million contract from Bank Simpanan Nasional for the latter’s proposed core banking system.
Kimlun Corporation Bhd has landed a contract worth RM82.1 million to build two blocks of service apartment and ancillary buildings in Johor Bahru. The company said its unit Kimlun Sdn Bhd had accepted the letter of award from Ikatan Flora Sdn. Bhd, a sub-subsidiary of IJM Land Bhd for the contract.
DAYANG ENTERPRISE HOLDINGS BHD [] has received an extension of its workboat contract valued at RM85 million from Nautika Sdn Bhd.
theedgemalaysia.com
Monday, 16 January 2012 20:25
KUALA LUMPUR (Jan 17): The strong corporate newsflow would provide excitement to the markets on Tuesday, despite the cloud of uncertainties from the eurozone.
Reuters reported European stocks were slightly higher in a choppy session on Monday, with weakness in banks after a mass credit downgrade of euro zone countries offset by a rise in defensives, such as pharmaceuticals.
Late on Friday, Standard & Poor's cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and France, Austria, Malta, Slovakia and Slovenia by one notch each.
At Bursa Malaysia, the FBM KLCI fell below the 1,510- level in line with the overall weaker investor sentiment at key regional markets following Standard & Poor’s cutting the sovereign credit rating of nine of the euro zone's 17 countries.
The FBM KLCI fell 14.01 points to 1,509.06 in a broadly weaker market.
Stocks which could see trading interest area PROTON HOLDINGS BHD [], DRB-HICOM BHD [], HOVID BHD [], Bumi Armada Bhd, HEITECH PADU BHD [] and Kimlun Corp Bhd.
Proton and DRB-Hicom resume trading after a one-day suspension. As expected, Khazanah Nasional Bhd announced it was divesting its 42.72% Proton stake to DRB-Hicom for RM5.50 per share or RM1.291 billion cash.
Upon completion of the sale and purchase agreement, DRB-Hicom will be obliged to undertake a mandatory general offer on the remaining Proton shares.
Bursa Malaysia Securities has lifted Hovid Bhd from the Practice Note 17 status with effect from Tuesday.
Bumi Armada Bhd’s subsidiary, Bumi Armada Navigation Sdn Bhd has secured a RM155 million contract from Petróleo Brasileiro S.A. The contract was to provide one anchor handling towing support (AHTS) vessel to Petrobras in its hydrocarbon and mining activities in the Brazilian continental shelf.
HeiTech Padu has secured a RM63.60 million contract from Bank Simpanan Nasional for the latter’s proposed core banking system.
Kimlun Corporation Bhd has landed a contract worth RM82.1 million to build two blocks of service apartment and ancillary buildings in Johor Bahru. The company said its unit Kimlun Sdn Bhd had accepted the letter of award from Ikatan Flora Sdn. Bhd, a sub-subsidiary of IJM Land Bhd for the contract.
DAYANG ENTERPRISE HOLDINGS BHD [] has received an extension of its workboat contract valued at RM85 million from Nautika Sdn Bhd.
theedgemalaysia.com
Thursday, January 12, 2012
Stocks to watch 20120112: Takaso, CIMB, Tan Chong, Supermax, Hibiscus
KUALA LUMPUR (Jan 12): Stocks on Bursa Malaysia could see some downside bias on Thursday following the weaker macroeconomic issues from its weaker exports outlook and also the troubled eurozone.
RHB Research Institute said on Wednesday it expected Malaysia’s export growth to slow down sharply in 2012 as the global economy will likely experience a protracted slow growth and downside risks remain.
“Indeed, the latest economic data releases suggest that the Eurozone economy might have fallen into a contraction and the US economic growth, though improving, is likely to remain in a low gear,” it said.
Malaysia recorded RM56.86 billion in exports in November 2011, up 8% on-year but when compared to the previous month of October, it fell 10.2%.
Imports for the month were RM47.38 billion, up 8.4% on-year but declined 5.3% on-month.
In its analysis of the November trade data, RHB Research said the 8% on-year export growth in November was the lowest in four months, after holding up at +15.8% in October and off a 15-month high of +16.6% in September.
“This was below the median estimate of an easing to +12.9%, on the back of sliding exports of commodity products as well as a weaker growth in the exports of non-electronic & electrical (E&E) manufactured goods during the month. A smaller contraction in the exports of E&E products, however, helped to mitigate this,” it said.
On the external front, the head of sovereign ratings for Fitch, David Riley warned that the European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a "cataclysmic" collapse of the euro, , said on Wednesday.
Riley said the collapse of the euro would be disastrous for the global economy, and while it is not Fitch's baseline scenario, it could happen if Italy did not find a way of its debt problems.
"The end of the euro would be cataclysmic. The euro is a reserve currency," Riley said. "What would that do in terms of financial and political stability?"
At Bursa Malaysia, among the stocks to watch are TAKASO RESOURCES BHD [], CIMB Group Holdings Bhd, TAN CHONG MOTOR HOLDINGS BHD [], SUPERMAX CORPORATION BHD [] and Hibiscus Petroleum Bhd.
Takaso, whose shares have been actively traded recently over a proposed timber concession, is set to seal an agreement with Kayumas PLANTATION [] Ltd on Thursday.
The agreement will enable Takaso to diversify and tap into Kayumas’ resources, including its concession and a timber licence. Kayumas also has the logging rights for 40,000 ha of timber in Papua New Guinea.
Philippine conglomerate San Miguel Corp is finalising a deal to sell 60% of its banking arm, Bank of Commerce, to the CIMB Group,.
Reuters said a share-transfer agreement was now being reviewed by the groups involved, the source, who was not authorised to speak to the media about the matter and thus did not want to be identified, told Reuters.
CIMB had said in October it was in early talks to acquire a stake in Bank of Commerce from San Miguel group.
Reuters said Bank of Commerce, with total assets of $2 billion, has capital stock of 16.96 billion pesos (US$385.5 million) as of June 2011, latest bank filings with the central bank show. Based on this data, a sale of a 60% stake in the bank could be worth US$231.3 million.
Tan Chong Motor Holdings had categorically stated it does not plan to acquire a stake in PROTON HOLDINGS BHD [].
It said that it “has neither received any formal invitation nor has any plan to bid for the stake in the national carmaker, Proton”.
Meanwhile, there could be some intermittent profit taking on glove makers after the strong run on Wednesday, if market sentiment weakens.
Supermax expects to record between RM100 million and RM110 million in profit after tax for the financial year ended Dec 31, 2011.
Its executive chairman Datuk Seri Stanley Thai said he also expected RM1 billion in sales in FY11.
For the nine-months ended Sept 30, FY11, Supermax reported RM77.86 million earnings on the turnover of RM750.70 million.
Hibiscus has come under some selling pressure on the back of rising trading volume after the run-up earlier this month. Its shares fell 16 sen to RM1.02 with 31.51 million units done while the warrants fell 2.5 sen to 61 sen with 27.69 million warrants done.
[theedgemalaysia.com]
RHB Research Institute said on Wednesday it expected Malaysia’s export growth to slow down sharply in 2012 as the global economy will likely experience a protracted slow growth and downside risks remain.
“Indeed, the latest economic data releases suggest that the Eurozone economy might have fallen into a contraction and the US economic growth, though improving, is likely to remain in a low gear,” it said.
Malaysia recorded RM56.86 billion in exports in November 2011, up 8% on-year but when compared to the previous month of October, it fell 10.2%.
Imports for the month were RM47.38 billion, up 8.4% on-year but declined 5.3% on-month.
In its analysis of the November trade data, RHB Research said the 8% on-year export growth in November was the lowest in four months, after holding up at +15.8% in October and off a 15-month high of +16.6% in September.
“This was below the median estimate of an easing to +12.9%, on the back of sliding exports of commodity products as well as a weaker growth in the exports of non-electronic & electrical (E&E) manufactured goods during the month. A smaller contraction in the exports of E&E products, however, helped to mitigate this,” it said.
On the external front, the head of sovereign ratings for Fitch, David Riley warned that the European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a "cataclysmic" collapse of the euro, , said on Wednesday.
Riley said the collapse of the euro would be disastrous for the global economy, and while it is not Fitch's baseline scenario, it could happen if Italy did not find a way of its debt problems.
"The end of the euro would be cataclysmic. The euro is a reserve currency," Riley said. "What would that do in terms of financial and political stability?"
At Bursa Malaysia, among the stocks to watch are TAKASO RESOURCES BHD [], CIMB Group Holdings Bhd, TAN CHONG MOTOR HOLDINGS BHD [], SUPERMAX CORPORATION BHD [] and Hibiscus Petroleum Bhd.
Takaso, whose shares have been actively traded recently over a proposed timber concession, is set to seal an agreement with Kayumas PLANTATION [] Ltd on Thursday.
The agreement will enable Takaso to diversify and tap into Kayumas’ resources, including its concession and a timber licence. Kayumas also has the logging rights for 40,000 ha of timber in Papua New Guinea.
Philippine conglomerate San Miguel Corp is finalising a deal to sell 60% of its banking arm, Bank of Commerce, to the CIMB Group,.
Reuters said a share-transfer agreement was now being reviewed by the groups involved, the source, who was not authorised to speak to the media about the matter and thus did not want to be identified, told Reuters.
CIMB had said in October it was in early talks to acquire a stake in Bank of Commerce from San Miguel group.
Reuters said Bank of Commerce, with total assets of $2 billion, has capital stock of 16.96 billion pesos (US$385.5 million) as of June 2011, latest bank filings with the central bank show. Based on this data, a sale of a 60% stake in the bank could be worth US$231.3 million.
Tan Chong Motor Holdings had categorically stated it does not plan to acquire a stake in PROTON HOLDINGS BHD [].
It said that it “has neither received any formal invitation nor has any plan to bid for the stake in the national carmaker, Proton”.
Meanwhile, there could be some intermittent profit taking on glove makers after the strong run on Wednesday, if market sentiment weakens.
Supermax expects to record between RM100 million and RM110 million in profit after tax for the financial year ended Dec 31, 2011.
Its executive chairman Datuk Seri Stanley Thai said he also expected RM1 billion in sales in FY11.
For the nine-months ended Sept 30, FY11, Supermax reported RM77.86 million earnings on the turnover of RM750.70 million.
Hibiscus has come under some selling pressure on the back of rising trading volume after the run-up earlier this month. Its shares fell 16 sen to RM1.02 with 31.51 million units done while the warrants fell 2.5 sen to 61 sen with 27.69 million warrants done.
[theedgemalaysia.com]
Friday, December 16, 2011
Stocks to watch 20111216: Coastal Contracts , Sanichi, Dialog, JCY
KUALA LUMPUR (Dec 16): Regional markets including Bursa Malaysia could trade on a cautious note on Friday as investors’ risk appetite for equities would be restrained by worries about the global economy and Europe's debt crisis.
Reuters reported major Southeast Asian stock markets fell on Thursday, extending the decline for the third day, led by banks and commodities as a decline in Chinese factory output added to worries about the global economy and Europe's debt crisis.
Concern over the situation in the euro zone rose after Fitch Ratings downgraded five big European banks on Wednesday.
At Bursa Malaysia, stocks which could see trading interest include COASTAL CONTRACTS BHD [], SANICHI TECHNOLOGY [] BHD [], DIALOG GROUP BHD [] and hard-disk drive manufacturer JCY International Bhd.
Coastal Contracts’s year-to-date order wins rose to RM690 million after the company secured new contracts worth RM233 million for the sale of three offshore support vessels, two landing crafts and two barges.
“With this latest batch of contracts, the value of Coastal Group’s secured vessel sales orders currently stood at about RM610 million, with deliveries through 2012,” it said.
Sanichi, whose shares inched up in very active trade on Thursday, could see continued trading action. It received a letter of intent from China’s Guangxi Huayin to purchase 150,000 tonnes of steam coal per month, totaling 1.80 million tonnes for a one-year period.
Sanichi said Guangxi Huayin is one of the largest and most advanced aluminium producers in China and the shareholders include the Aluminium Corporation of China with a 33% stake.
Meanwhile Dialog Group Bhd, which is undertaking a cash call to raise funds for more investments in the upstream oil and gas opportunities, has fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.
The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price (VWAMP)up to Dec 14 of RM2.43.
As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day VWAMP up to Dec 14 of RM2.43.
JCY could see continued trading interest as it was not impacted by the severe floods in Thailand unlike other hard-disk drive manufacturers which had major operations in Thailand.
CIMB Equities Research said believed a full restoration to pre-flood production was at least six to nine months away, but suppliers with strong balance sheets to invest could benefit from greater allocations in the near term.
“Improvements in average selling prices (ASP) for drive makers should also be positive for the industry,” it said. It advised investors to be selective as it believed volume would remain hindered by component shortages.
“Buy JCY as we expect strong near-term earnings on higher ASPs and allocations,” it said.
Reuters reported major Southeast Asian stock markets fell on Thursday, extending the decline for the third day, led by banks and commodities as a decline in Chinese factory output added to worries about the global economy and Europe's debt crisis.
Concern over the situation in the euro zone rose after Fitch Ratings downgraded five big European banks on Wednesday.
At Bursa Malaysia, stocks which could see trading interest include COASTAL CONTRACTS BHD [], SANICHI TECHNOLOGY [] BHD [], DIALOG GROUP BHD [] and hard-disk drive manufacturer JCY International Bhd.
Coastal Contracts’s year-to-date order wins rose to RM690 million after the company secured new contracts worth RM233 million for the sale of three offshore support vessels, two landing crafts and two barges.
“With this latest batch of contracts, the value of Coastal Group’s secured vessel sales orders currently stood at about RM610 million, with deliveries through 2012,” it said.
Sanichi, whose shares inched up in very active trade on Thursday, could see continued trading action. It received a letter of intent from China’s Guangxi Huayin to purchase 150,000 tonnes of steam coal per month, totaling 1.80 million tonnes for a one-year period.
Sanichi said Guangxi Huayin is one of the largest and most advanced aluminium producers in China and the shareholders include the Aluminium Corporation of China with a 33% stake.
Meanwhile Dialog Group Bhd, which is undertaking a cash call to raise funds for more investments in the upstream oil and gas opportunities, has fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.
The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price (VWAMP)up to Dec 14 of RM2.43.
As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day VWAMP up to Dec 14 of RM2.43.
JCY could see continued trading interest as it was not impacted by the severe floods in Thailand unlike other hard-disk drive manufacturers which had major operations in Thailand.
CIMB Equities Research said believed a full restoration to pre-flood production was at least six to nine months away, but suppliers with strong balance sheets to invest could benefit from greater allocations in the near term.
“Improvements in average selling prices (ASP) for drive makers should also be positive for the industry,” it said. It advised investors to be selective as it believed volume would remain hindered by component shortages.
“Buy JCY as we expect strong near-term earnings on higher ASPs and allocations,” it said.
Thursday, December 15, 2011
Stocks to watch 20111215: QSR, KFCH, Kencana, MAS
KUALA LUMPUR (Dec 15): QSR BRANDS BHD [] and KFC HOLDINGS (M) BHD [] (KFCH) will be in focus on Thursday when their securities resume trading.
Johor Corporation and CVC Capital Partners Asia III Ltd have teamed up to take over QSR and KFCH.
They offered RM6.80 for the QSR shares and RM3.79 for the warrants. At RM6.80, this is 80 sen above the closing price of RM6 on Tuesday while the offer price for the warrants was a premium of 77 sen from the closing price of RM3.02.
They also made an offer to KFCH of RM4 per share and RM1 per warrant. At RM4, this was 59 sen above the closing price of RM3.41 on Tuesday but five sen below the closing price of RM1.05.
KENCANA PETROLEUM BHD []’s earnings rose 59.5% to RM83.54 million from RM52.35 million a year ago, underpinned by the full contribution from Allied Marine & Equipment Sdn Bhd. Its revenue increased by 69% to RM569.92 million from RM336.96 million while earnings per share were 4.2 sen compared with 3.16 sen.
Loss-making MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) will axe eight loss-making routes under its route rationalisation exercise which will take effect early 2012.
The withdrawal from the loss-making routes accounted for almost 12% of its passenger capacity.
“We estimate that the ongoing route rationalisation will improve loads, increase yields and have a profit impact of RM220 million to RM302 million for 2012,” said MAS group CEO Ahmad Jauhari Yahya.
Johor Corporation and CVC Capital Partners Asia III Ltd have teamed up to take over QSR and KFCH.
They offered RM6.80 for the QSR shares and RM3.79 for the warrants. At RM6.80, this is 80 sen above the closing price of RM6 on Tuesday while the offer price for the warrants was a premium of 77 sen from the closing price of RM3.02.
They also made an offer to KFCH of RM4 per share and RM1 per warrant. At RM4, this was 59 sen above the closing price of RM3.41 on Tuesday but five sen below the closing price of RM1.05.
KENCANA PETROLEUM BHD []’s earnings rose 59.5% to RM83.54 million from RM52.35 million a year ago, underpinned by the full contribution from Allied Marine & Equipment Sdn Bhd. Its revenue increased by 69% to RM569.92 million from RM336.96 million while earnings per share were 4.2 sen compared with 3.16 sen.
Loss-making MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) will axe eight loss-making routes under its route rationalisation exercise which will take effect early 2012.
The withdrawal from the loss-making routes accounted for almost 12% of its passenger capacity.
“We estimate that the ongoing route rationalisation will improve loads, increase yields and have a profit impact of RM220 million to RM302 million for 2012,” said MAS group CEO Ahmad Jauhari Yahya.
Wednesday, December 14, 2011
Stocks to watch 20111214: DRB-Hicom, Proton, GoldIS, Faber, Mah Sing
KUALA LUMPUR (Dec 13): DRB-HICOM BHD [] and PROTON HOLDINGS BHD [] would continue to be in focus on Wednesday amid the heavy newsflow despite analysts’ caution that DRB-Hicom’s takeover of Proton might not add value.
The latest development was Proton adviser, Tun Dr Mahathir Mohamad that the buyer of Khazanah Nasional Bhd's 42.7% stake in the national car maker might have to inject maybe another RM2 billion more.
Dr Mahathir, the prime mover behind the national car project, said at the moment, Proton cannot make progress, introduce new vehicles and all that, because of shortage of funds.
The call warrants of Proton and DRB-Hicom were very actively traded on Tuesday on expectations of DRB-Hicom’s purchase of the Khazanah stake.
Other counters which could see trading interest are GOLDIS BHD [], FABER GROUP BHD [], MAH SING GROUP BHD [], RAMUNIA HOLDINGS BHD [].
GoldIS’s net profit for the third quarter ended Oct 31, 2011 surged to RM237.4 million from RM11 million a year earlier, due mainly to the gain on disposal of a subsidiary amounting to RM221.2 million. Revenue for the quarter rose 49.7% to RM75.82 million from RM50.64 million in 2010.
It declared a gross second interim dividend of half a sen and 9.50 sen single tier per ordinary share, to be paid Jan 18, 2012.
As for Faber, Al Femah Contracting and Transporting Establishment is seeking RM13.10 million in claims from Faber Group Bhd’s subsidiary and Projek Penyelenggaraan Lebuhraya Bhd (Propel).
Faber said its subsidiary Faber Limited Liability Company (Faber LLC) had received a summons and statement of claim from Al Femah in the UAE.
Ramunia posted net profit of RM112,000 in the fourth quarter ended Oct 31, 2011 compared with RM30.36 million when there was a one-time writeback from a previously concluded scheme of arrangement. Its revenue was RM15.67 million compared with only RM992,000 a year ago. Its earnings per share were 0.02 sen compared with 4.91 sen.
For the financial year ended Oct 31, 2011, its net profit plunged to RM4.66 million from RM65.78 million in the previous financial year. Its revenue fell 45.6% to RM18.95 million from RM34.86 million.
Mah Sing Group Bhd has disputed with the joint venture partners for the proposed development of a piece of prime land along Jalan Tun Razak here and had maintained the agreement is valid.
Mah Sing said on Tuesday the two parties -- Asie Sdn Bhd and Usaha Nusantara Sdn Bhd -- had claimed the joint venture agreement (JVA) for the development of the 4.08 acres site had lapsed “and is of no effect from Dec 2, 2011” as the conditions were not met.
“Mah Sing however, takes a different position and maintains that the JVA has not lapsed,” it said, referring to its Dec 6 announcement that it waived the conditions in the Aug 2 announcement.
S P Setia Bhd’s request for more time to fulfill the conditions in its purchase of 1,010.5 acres of land in Ulu Langat, Selangor for RM330.13 million was rejected by the vendor Ban Guan Hin Realty Sdn Bhd.
S P Setia said Ban Guan Hin Realty did not agree to an extension of the period to fulfill the conditions, including securing the Estate Land Board’s approval for the sale and transfer of the land to the purchaser.
The latest development was Proton adviser, Tun Dr Mahathir Mohamad that the buyer of Khazanah Nasional Bhd's 42.7% stake in the national car maker might have to inject maybe another RM2 billion more.
Dr Mahathir, the prime mover behind the national car project, said at the moment, Proton cannot make progress, introduce new vehicles and all that, because of shortage of funds.
The call warrants of Proton and DRB-Hicom were very actively traded on Tuesday on expectations of DRB-Hicom’s purchase of the Khazanah stake.
Other counters which could see trading interest are GOLDIS BHD [], FABER GROUP BHD [], MAH SING GROUP BHD [], RAMUNIA HOLDINGS BHD [].
GoldIS’s net profit for the third quarter ended Oct 31, 2011 surged to RM237.4 million from RM11 million a year earlier, due mainly to the gain on disposal of a subsidiary amounting to RM221.2 million. Revenue for the quarter rose 49.7% to RM75.82 million from RM50.64 million in 2010.
It declared a gross second interim dividend of half a sen and 9.50 sen single tier per ordinary share, to be paid Jan 18, 2012.
As for Faber, Al Femah Contracting and Transporting Establishment is seeking RM13.10 million in claims from Faber Group Bhd’s subsidiary and Projek Penyelenggaraan Lebuhraya Bhd (Propel).
Faber said its subsidiary Faber Limited Liability Company (Faber LLC) had received a summons and statement of claim from Al Femah in the UAE.
Ramunia posted net profit of RM112,000 in the fourth quarter ended Oct 31, 2011 compared with RM30.36 million when there was a one-time writeback from a previously concluded scheme of arrangement. Its revenue was RM15.67 million compared with only RM992,000 a year ago. Its earnings per share were 0.02 sen compared with 4.91 sen.
For the financial year ended Oct 31, 2011, its net profit plunged to RM4.66 million from RM65.78 million in the previous financial year. Its revenue fell 45.6% to RM18.95 million from RM34.86 million.
Mah Sing Group Bhd has disputed with the joint venture partners for the proposed development of a piece of prime land along Jalan Tun Razak here and had maintained the agreement is valid.
Mah Sing said on Tuesday the two parties -- Asie Sdn Bhd and Usaha Nusantara Sdn Bhd -- had claimed the joint venture agreement (JVA) for the development of the 4.08 acres site had lapsed “and is of no effect from Dec 2, 2011” as the conditions were not met.
“Mah Sing however, takes a different position and maintains that the JVA has not lapsed,” it said, referring to its Dec 6 announcement that it waived the conditions in the Aug 2 announcement.
S P Setia Bhd’s request for more time to fulfill the conditions in its purchase of 1,010.5 acres of land in Ulu Langat, Selangor for RM330.13 million was rejected by the vendor Ban Guan Hin Realty Sdn Bhd.
S P Setia said Ban Guan Hin Realty did not agree to an extension of the period to fulfill the conditions, including securing the Estate Land Board’s approval for the sale and transfer of the land to the purchaser.
Tuesday, December 13, 2011
Stocks to watch 20111213: Proton, DRB-Hicom, BToto, GAB, Sersol
KUALA LUMPUR (Dec 13): The FBM KLCI could trade in a tight range on Tuesday, in line with the weaker sentiment at Wall Street and the European markets that fell on Monday as investors appeared less than convinced about the European leaders’ summit deal to pursue stricter budget rules and a stronger fiscal union.
Initial market enthusiasm over the plan on Friday faded due to legal uncertainty surrounding the pact and the absence of a sufficiently strong financial backstop for the euro zone single currency, according to Reuters.
Ratings agency Standard & Poor's put more pressure on investor sentiment after its chief economist said time was running out for the euro zone to resolve its debt problems and that it might need another financial shock to get it moving.
Fitch Ratings warned that the meeting of EU leaders last week did little to ease pressure on the region's sovereign debt crisis and the rating agency predicted a "significant economic downturn" across the region.
On Monday, Asian indices, including the FBM KLCI pared down their earlier gains.
Against this backdrop, crude palm oil (CPO) futures and crude oil prices also eased.
Palm futures fell to their lowest level in more than a month on Monday, tracking comparative oils lower as investors continued to fret about European debt, but expectations of a heavy rainy season helped cap losses, said Reuters.
CPO futures on the Bursa Malaysia Derivatives Exchange fell RM86 per tonne to RM2,998, the lowest since Nov 8.
On Bursa Malaysia, among the stocks that could be in focus are PROTON HOLDINGS BHD [], DRB-HICOM BHD [], BERJAYA SPORTS TOTO BHD [] (BToto), GUINNESS ANCHOR BHD [] (GAB), and SERSOL TECHNOLOGIES BHD [], as well as PLANTATION []-related stocks.
Proton shares and call warrants rallied on Monday on market talk that Khazanah Nasional would sell its stake to DRB-Hicom.
Tun Dr Mahathir Mohamad, Proton’s adviser, said Khazanah was selling its stake to DRB-Hicom. He was quoted saying on Sunday that Khazanah was selling its stake because it was not pumping more money into Proton, which needed funds for research and development work on new products such as hybrid cars.
BToto’s earnings jumped 62.3% to RM105.67 million in the second quarter ended Oct 31, 2011 from RM65.08 million a year ago when it was affected mainly due to the higher prize payout then.
It said on Monday it revenue rose 1.9% to RM862.37 million from RM845.79 million while its earnings per share were 7.90 sen compared with 4.87 sen. It declared an interim dividend of 8.0 sen per share.
GAB is rewarding it shareholders with a single tier special interim dividend of 60 sen per 50 sen share for the financial year ending June 30, 2012, to be paid on Jan 20 next year.
Meanwhile, Sersol’s shares, which halted trade from 3.56pm on Monday after the company announced it was unaware of the reasons for unusual market activity, will resume trade on Tuesday.
Sersol was earlier queried by Bursa Securities over the sharp rise in price and high volume in the shares recently.
The company in its reply to the regulator, said the directors and major shareholders were not aware of any factors which might have contributed to the unusual market activity.
The company had on Nov 30, announced the embezzlement detected in Zhuhai MS Coating Ltd, after taking into consideration minority interests, was only RM437,000.
Initial market enthusiasm over the plan on Friday faded due to legal uncertainty surrounding the pact and the absence of a sufficiently strong financial backstop for the euro zone single currency, according to Reuters.
Ratings agency Standard & Poor's put more pressure on investor sentiment after its chief economist said time was running out for the euro zone to resolve its debt problems and that it might need another financial shock to get it moving.
Fitch Ratings warned that the meeting of EU leaders last week did little to ease pressure on the region's sovereign debt crisis and the rating agency predicted a "significant economic downturn" across the region.
On Monday, Asian indices, including the FBM KLCI pared down their earlier gains.
Against this backdrop, crude palm oil (CPO) futures and crude oil prices also eased.
Palm futures fell to their lowest level in more than a month on Monday, tracking comparative oils lower as investors continued to fret about European debt, but expectations of a heavy rainy season helped cap losses, said Reuters.
CPO futures on the Bursa Malaysia Derivatives Exchange fell RM86 per tonne to RM2,998, the lowest since Nov 8.
On Bursa Malaysia, among the stocks that could be in focus are PROTON HOLDINGS BHD [], DRB-HICOM BHD [], BERJAYA SPORTS TOTO BHD [] (BToto), GUINNESS ANCHOR BHD [] (GAB), and SERSOL TECHNOLOGIES BHD [], as well as PLANTATION []-related stocks.
Proton shares and call warrants rallied on Monday on market talk that Khazanah Nasional would sell its stake to DRB-Hicom.
Tun Dr Mahathir Mohamad, Proton’s adviser, said Khazanah was selling its stake to DRB-Hicom. He was quoted saying on Sunday that Khazanah was selling its stake because it was not pumping more money into Proton, which needed funds for research and development work on new products such as hybrid cars.
BToto’s earnings jumped 62.3% to RM105.67 million in the second quarter ended Oct 31, 2011 from RM65.08 million a year ago when it was affected mainly due to the higher prize payout then.
It said on Monday it revenue rose 1.9% to RM862.37 million from RM845.79 million while its earnings per share were 7.90 sen compared with 4.87 sen. It declared an interim dividend of 8.0 sen per share.
GAB is rewarding it shareholders with a single tier special interim dividend of 60 sen per 50 sen share for the financial year ending June 30, 2012, to be paid on Jan 20 next year.
Meanwhile, Sersol’s shares, which halted trade from 3.56pm on Monday after the company announced it was unaware of the reasons for unusual market activity, will resume trade on Tuesday.
Sersol was earlier queried by Bursa Securities over the sharp rise in price and high volume in the shares recently.
The company in its reply to the regulator, said the directors and major shareholders were not aware of any factors which might have contributed to the unusual market activity.
The company had on Nov 30, announced the embezzlement detected in Zhuhai MS Coating Ltd, after taking into consideration minority interests, was only RM437,000.
Monday, December 12, 2011
Stocks to watch 20111212: IGB, Notion, Axiata, SYF
KUALA LUMPUR (Dec 10): Stocks on Bursa Malaysia could be given a boost on Monday following the firmer close on Wall Street as EU leaders worked out a plan to restore market confidence.
The Dow Jones industrial average ended up 186.56 points, or 1.55%, at 12,184.26. The Standard & Poor's 500 Index was up 20.84 points, or 1.69%, at 1,255.19. The Nasdaq Composite Index rose 50.47 points, or 1.94%, at 2,646.85.
For the week, the Dow rose 1.4%, the S&P gained 0.9% and the Nasdaq was up 0.8%.
As for Bursa Malaysia, the FBM KLCI fell 12.79 points or 0.87% to 1,460.13, weighed by losses including at KL Kepong, GENTING BHD [], PPB, AMMB and Gamuda.
Hong Kong’s Hang Seng Index lost 2.73% to 18,586.23, South Korea’s Kospi fell 1.97% to 1,874.75, Japan’s Nikkei 225 was down 1.48% to 8,536.46, Taiwan’s Taiex lost 1.28% to 6,893.30, the Shanghai Composite Index shed 0.62% to 2,315.27 and Singapore’s Straits Times Index lost 1.24% to 2,694.60.
However, whether the rebound could last in the week ahead also remains to be seen.
Affin Investment Bank head of retail research Dr Nazri Khan is more cautious as he believes the FBM KLCI is likely to pullback lower to 1,430 to 1,420 support level on absence of an EU catalyst and lack of momentum from last week liquidity boost rally.
“We reckon the bearishness are driven by two important factors namely : (1) further caution from S&P 500 warning to massively downgrade EU countries and (2) investors losing expectation over EU summit to produce a financial bazooka to contain the debt crisis,” he said.
Stocks which could see trading interest on Monday include IGB Group Bhd, Axiata Group Bhd, NOTION VTEC BHD [] and SYF RESOURCES BHD [].
On Monday, Broadcast Australia will ink and agreement with Axiata Group Bhd’s unit Axiata Celcom wherein the former will be Celcom’s technical partner to bid for the RM2 billion digital terrestrial television broadcasting (DTTB) project.
Celcom would ultimately be providing infrastructure for the (DTTB) network and rent it out for stable income in the future.
Celcom, which invested RM1 billion in the 3G infrastructure this year and plans to spend another RM1 billion next year.
The Edge weekly reports that the IGB group is said to have engaged investment banks to look into structuring a real estate investment trust. The property group is hoping to launch the REIT by first half of 2012.
It also reported that Notion VTec Bhd is hoping to grow its hard disk drive segment by 40% next year with the growing momentum in its 2.5in HDD base plate business, which is expected to turn profitable in the second quarter.
Meanwhile, SYF is now on firmer footing after regularising its financial condition. It recorded net profit of RM39.24 million in the first quarter ended Oct 31, 2011 when compared with net loss of RM581,000 a year ago after the waiver of debts and overprovision of interest.
Its revenue was 6.3% higher at RM42.98 million compared with RM40.44 million a year ago. Its earnings per share were 43.37 sen compared with loss per share of 0.69 sen.
The Dow Jones industrial average ended up 186.56 points, or 1.55%, at 12,184.26. The Standard & Poor's 500 Index was up 20.84 points, or 1.69%, at 1,255.19. The Nasdaq Composite Index rose 50.47 points, or 1.94%, at 2,646.85.
For the week, the Dow rose 1.4%, the S&P gained 0.9% and the Nasdaq was up 0.8%.
As for Bursa Malaysia, the FBM KLCI fell 12.79 points or 0.87% to 1,460.13, weighed by losses including at KL Kepong, GENTING BHD [], PPB, AMMB and Gamuda.
Hong Kong’s Hang Seng Index lost 2.73% to 18,586.23, South Korea’s Kospi fell 1.97% to 1,874.75, Japan’s Nikkei 225 was down 1.48% to 8,536.46, Taiwan’s Taiex lost 1.28% to 6,893.30, the Shanghai Composite Index shed 0.62% to 2,315.27 and Singapore’s Straits Times Index lost 1.24% to 2,694.60.
However, whether the rebound could last in the week ahead also remains to be seen.
Affin Investment Bank head of retail research Dr Nazri Khan is more cautious as he believes the FBM KLCI is likely to pullback lower to 1,430 to 1,420 support level on absence of an EU catalyst and lack of momentum from last week liquidity boost rally.
“We reckon the bearishness are driven by two important factors namely : (1) further caution from S&P 500 warning to massively downgrade EU countries and (2) investors losing expectation over EU summit to produce a financial bazooka to contain the debt crisis,” he said.
Stocks which could see trading interest on Monday include IGB Group Bhd, Axiata Group Bhd, NOTION VTEC BHD [] and SYF RESOURCES BHD [].
On Monday, Broadcast Australia will ink and agreement with Axiata Group Bhd’s unit Axiata Celcom wherein the former will be Celcom’s technical partner to bid for the RM2 billion digital terrestrial television broadcasting (DTTB) project.
Celcom would ultimately be providing infrastructure for the (DTTB) network and rent it out for stable income in the future.
Celcom, which invested RM1 billion in the 3G infrastructure this year and plans to spend another RM1 billion next year.
The Edge weekly reports that the IGB group is said to have engaged investment banks to look into structuring a real estate investment trust. The property group is hoping to launch the REIT by first half of 2012.
It also reported that Notion VTec Bhd is hoping to grow its hard disk drive segment by 40% next year with the growing momentum in its 2.5in HDD base plate business, which is expected to turn profitable in the second quarter.
Meanwhile, SYF is now on firmer footing after regularising its financial condition. It recorded net profit of RM39.24 million in the first quarter ended Oct 31, 2011 when compared with net loss of RM581,000 a year ago after the waiver of debts and overprovision of interest.
Its revenue was 6.3% higher at RM42.98 million compared with RM40.44 million a year ago. Its earnings per share were 43.37 sen compared with loss per share of 0.69 sen.
Friday, December 9, 2011
Stocks to watch 20111209: S P Setia, Kencana, Boustead, Benalec
KUALA LUMPUR (Dec 9): The FBM KLCI could trade in a tight range on Friday, as the focus turns on the economic data from China over the next two days as well as the crucial summit of European policymakers.
Global markets, however, could edge upwards as the European Central Bank cut interest rates by a quarter of a point on Thursday to counter the twin threats of recession and deflation in the euro zone.
The ECB is also expected to unveil fresh measures to help banks hurt by the bloc's debt crisis, according to Reuters.
At Bursa Malaysia, the market could be given a boost from the slew of fresh corporate announcements.
Among the stocks are S P Setia Bhd, KENCANA PETROLEUM BHD [], BOUSTEAD HOLDINGS BHD [], Benalec Holdings, Bumi Armada Bhd and MELEWAR INDUSTRIAL GROUP BHD [].
S P Setia Bhd set a set a new full-year sales record in FY 2011 of RM3.29 billion, or a 42% increase from the previous record of RM2.31 billion set in FY 2010. The company has also set a target to achieve total new sales of RM4 billion in FY 2012.
For the financial year ended Oct 31, S P Setia’s net profit rose 30.2% to RM327.97 million from RM251.81 million, on the back of an increase in revenue to RM2.23 billion from RM1.75 billion in 2010.
However, the offer price cap set by Permodalan Nasional Bhd (PNB) in its takeover bid could restrain any upside. PNB offered RM3.90 per share and 91 sen per warrant.
Kencana’s unit, Kencana HL Sdn Bhd, secured a RM1 billion contract from Bechtel International Inc to fabricate and assemble a liquefied natural gas (LNG) processing plant in Australia.
The contract includes fabrication to loading of process equipment modules for Wheatstone Project LNG plant at Ashburton North, Western Australia.
Boustead subsidiary, Boustead Naval Shipyard Sdn Bhd secured a RM62 million job from the government to supply spare parts, maintenance, integrated logistic support and training for the 17th patrol vessel squadron of the Malaysian navy.
Benalec inked a MoU with Singapore-based Rotary Engineering Ltd to jointly develop an independent deepwater storage terminal for oil products in Tanjung Piai, Johor. The MoU would enable it to become a strategic business partner with Rotary in the equity ownership and development of the terminal in Tanjung Piai.
Bumi Armada's subsidiary Armada TGT Ltd has inked a US$341.1 million (RM 1.08 billion) loan with seven financial institutions to fund the conversion and installation of the FPSO Armada TGT 1 to be used in the Te Giac Tran Field, offshore Vietnam.
Its chief financial officer Shaharul Rezza Hassan said the facility was for seven years and represented about 80% of its capex value.
Meanwhile, Melewar’s unit Melewar Integrated Engineering Sdn Bhd (MIE) has inked an MoU with KAZMY Steel Company wherein MIE would be the contractor to design and build the MycroSmelt plant in Almaty, Kazakhstan.
Global markets, however, could edge upwards as the European Central Bank cut interest rates by a quarter of a point on Thursday to counter the twin threats of recession and deflation in the euro zone.
The ECB is also expected to unveil fresh measures to help banks hurt by the bloc's debt crisis, according to Reuters.
At Bursa Malaysia, the market could be given a boost from the slew of fresh corporate announcements.
Among the stocks are S P Setia Bhd, KENCANA PETROLEUM BHD [], BOUSTEAD HOLDINGS BHD [], Benalec Holdings, Bumi Armada Bhd and MELEWAR INDUSTRIAL GROUP BHD [].
S P Setia Bhd set a set a new full-year sales record in FY 2011 of RM3.29 billion, or a 42% increase from the previous record of RM2.31 billion set in FY 2010. The company has also set a target to achieve total new sales of RM4 billion in FY 2012.
For the financial year ended Oct 31, S P Setia’s net profit rose 30.2% to RM327.97 million from RM251.81 million, on the back of an increase in revenue to RM2.23 billion from RM1.75 billion in 2010.
However, the offer price cap set by Permodalan Nasional Bhd (PNB) in its takeover bid could restrain any upside. PNB offered RM3.90 per share and 91 sen per warrant.
Kencana’s unit, Kencana HL Sdn Bhd, secured a RM1 billion contract from Bechtel International Inc to fabricate and assemble a liquefied natural gas (LNG) processing plant in Australia.
The contract includes fabrication to loading of process equipment modules for Wheatstone Project LNG plant at Ashburton North, Western Australia.
Boustead subsidiary, Boustead Naval Shipyard Sdn Bhd secured a RM62 million job from the government to supply spare parts, maintenance, integrated logistic support and training for the 17th patrol vessel squadron of the Malaysian navy.
Benalec inked a MoU with Singapore-based Rotary Engineering Ltd to jointly develop an independent deepwater storage terminal for oil products in Tanjung Piai, Johor. The MoU would enable it to become a strategic business partner with Rotary in the equity ownership and development of the terminal in Tanjung Piai.
Bumi Armada's subsidiary Armada TGT Ltd has inked a US$341.1 million (RM 1.08 billion) loan with seven financial institutions to fund the conversion and installation of the FPSO Armada TGT 1 to be used in the Te Giac Tran Field, offshore Vietnam.
Its chief financial officer Shaharul Rezza Hassan said the facility was for seven years and represented about 80% of its capex value.
Meanwhile, Melewar’s unit Melewar Integrated Engineering Sdn Bhd (MIE) has inked an MoU with KAZMY Steel Company wherein MIE would be the contractor to design and build the MycroSmelt plant in Almaty, Kazakhstan.
Thursday, December 8, 2011
Stocks to watch 201111208: MAS, Toyo Ink, Sanichi, BHIC
KUALA LUMPUR (Dec 8): Gains at the FBM KLCI on Thursday could be capped by cautious sentiment ahead of a crucial European Union leaders’ summit later this week, as pressure mounts on policymakers there to thrash out a definitive plan to salvage the region from a deeper debt crisis.
European shares turned briefly negative on Wednesday after downbeat comments from a German politician about the chances for a comprehensive deal at a leaders' summit this week, aimed at resolving the region's debt crisis, according to Reuters.
Regional markets, including at Bursa Malaysia, had closed higher on Wednesday after the Financial Times reported that European leaders would discuss boosting the firepower of the euro zone bailout fund.
On Bursa Malaysia, among the stocks that could be in focus today are MALAYSIAN AIRLINE SYSTEM BHD [], TOYO INK GROUP BHD [], SANICHI TECHNOLOGY [] BHD [] and BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd.
MAS aims to fly back into the black by 2013 on the back of an aggressive capacity cut, which is possibly the largest in the airline’s history.
The airline said it would reduce 12% of its capacity and cut unprofitable routes over the next one year, a move that it said would save it some RM300 million, which accounts for over 20% of the RM1.18 billion to RM1.51 billion in cost savings and additional income it aims to achieve under its turnaround plan unveiled yesterday.
MAS also confirmed the launch of a new regional premium airline, which will serve mainly Asian routes, by the middle of next year.
However, the airline will remain in the red this year after posting a RM1.25 billion loss for the first nine months.
Toyo Ink has been given the nod to commence research and development of the proposed US$2.5 billion Song Hau 2 Thermo Power Plant in Vietnam.
The company said on Wednesday that it had a letter from Vietnam's Ministry of Industry and Trade for it to start research and development of the plant with a capacity of 2 X 1000 MW at Song Hau Power Center, Hau Giang Province.
Sanichi, a precision-mould maker, is venturing into the minerals mining and supply business via a collaboration with FIRC Trade (Malaysia) Sdn Bhd. The latter is principally involved in the mining industry as contract owners and joint venture partners with several producing iron ore and coal mines in Malaysia and Indonesia.
Sanichi said under that the collaboration, FIRC would provide technical expertise and engineering support to Sanichi, while the group will co-brand with FIRC for the purposes of marketing and business development.
BHIC’s subsidiary BHIC AeroServices (BHICAS) Sdn Bhd was awarded the certification by Directorate General Technical Airworthiness of the Malaysian Armed Forces, which the Malaysian technical airworthiness authority.
The AMO certification is for the maintainance, repair & overhaul (MRO) of Eurocopter AS555SN Fennec helicopters, it said.
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd, a wholly-owned subsidiary of Boustead Penang Shipyard Sdn Bhd, Prestige Pillar Sdn Bhd and Eurocopter Malaysia Sdn Bhd, a wholly-owned subsidiary of Eurocopter.
European shares turned briefly negative on Wednesday after downbeat comments from a German politician about the chances for a comprehensive deal at a leaders' summit this week, aimed at resolving the region's debt crisis, according to Reuters.
Regional markets, including at Bursa Malaysia, had closed higher on Wednesday after the Financial Times reported that European leaders would discuss boosting the firepower of the euro zone bailout fund.
On Bursa Malaysia, among the stocks that could be in focus today are MALAYSIAN AIRLINE SYSTEM BHD [], TOYO INK GROUP BHD [], SANICHI TECHNOLOGY [] BHD [] and BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd.
MAS aims to fly back into the black by 2013 on the back of an aggressive capacity cut, which is possibly the largest in the airline’s history.
The airline said it would reduce 12% of its capacity and cut unprofitable routes over the next one year, a move that it said would save it some RM300 million, which accounts for over 20% of the RM1.18 billion to RM1.51 billion in cost savings and additional income it aims to achieve under its turnaround plan unveiled yesterday.
MAS also confirmed the launch of a new regional premium airline, which will serve mainly Asian routes, by the middle of next year.
However, the airline will remain in the red this year after posting a RM1.25 billion loss for the first nine months.
Toyo Ink has been given the nod to commence research and development of the proposed US$2.5 billion Song Hau 2 Thermo Power Plant in Vietnam.
The company said on Wednesday that it had a letter from Vietnam's Ministry of Industry and Trade for it to start research and development of the plant with a capacity of 2 X 1000 MW at Song Hau Power Center, Hau Giang Province.
Sanichi, a precision-mould maker, is venturing into the minerals mining and supply business via a collaboration with FIRC Trade (Malaysia) Sdn Bhd. The latter is principally involved in the mining industry as contract owners and joint venture partners with several producing iron ore and coal mines in Malaysia and Indonesia.
Sanichi said under that the collaboration, FIRC would provide technical expertise and engineering support to Sanichi, while the group will co-brand with FIRC for the purposes of marketing and business development.
BHIC’s subsidiary BHIC AeroServices (BHICAS) Sdn Bhd was awarded the certification by Directorate General Technical Airworthiness of the Malaysian Armed Forces, which the Malaysian technical airworthiness authority.
The AMO certification is for the maintainance, repair & overhaul (MRO) of Eurocopter AS555SN Fennec helicopters, it said.
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd, a wholly-owned subsidiary of Boustead Penang Shipyard Sdn Bhd, Prestige Pillar Sdn Bhd and Eurocopter Malaysia Sdn Bhd, a wholly-owned subsidiary of Eurocopter.
Wednesday, December 7, 2011
Stocks to watch 20111207: Guocoland, CBIP, Ekovest, MRCB, Wijaya Baru
KUALA LUMPUR (Dec 7): Investor sentiment at the local stock market is likely to remain cautious on Wednesday in line with the overall tepid mood at key regional markets a day earlier after Standard & Poor's warned it might downgrade top-rated Germany and other euro zone countries.
S&P had placed the ratings of 15 euro zone countries on credit watch negative, including the region's two biggest economies Germany and France, and said "systemic stresses" are building as credit conditions tighten in the 17-nation region.
However, analysts say they are cautiously optimistic that European policymakers would make some progress in finding a solution to the eurozone debt crisis at the summit later this week, and as such the decline at the stock market was not expected to be severe, with the exception of further shocks like credit rating downgrades.
On Bursa Malaysia, among the stocks that could be in focus are GUOCOLAND (MALAYSIA) BHD [], CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP), EKOVEST BHD [], MALAYSIAN RESOURCES CORP []oration Bhd and Wijaya Baru Global Berhad.
Guocoland’sunit is acquiring 46.72 acres of land worth RM107.8 million in the Cheras locality as part of its land bank expansion plan for future developments.
Its unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land located in Cheras and Mukim Petaling.
Meanwhile, CBIB secured a RM17.88 million contract from Felda Palm Industries Sdn Bhd for the conversion of the Trolak palm oil mill in Sungkai, Perak. Its unit Modipalm Engineering Sdn Bhd has accepted the letter of award to build and install the mill.
Ekovest - MRCB JV Sdn Bhd (EMJV) was picked the be the project delivery partner (PDP) by the government for to assist in the implementation and delivery of the River of Life (ROL) project.
EMJV is a joint venture between Ekovest Bhd and Malaysian Resources Corporation Bhd, where Ekovest will subscribe to 60% of the issued and paid up capital of the Company, while MRCB will subscribe to the remaining 40%. EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over three years.
It will also receive monetary incentives for the work done and the contract is expected to contribute positively to its future earnings.
Meanwhile, Wijaya Baru received its shareholders’ nod to acquire US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.
Wijaya will acquire 100% of Suffolk and Wealth Gate's shares, giving Wijaya ownership of two 40,000 ha plots of land in Irianjaya which can be converted into oil palm PLANTATION []s.
S&P had placed the ratings of 15 euro zone countries on credit watch negative, including the region's two biggest economies Germany and France, and said "systemic stresses" are building as credit conditions tighten in the 17-nation region.
However, analysts say they are cautiously optimistic that European policymakers would make some progress in finding a solution to the eurozone debt crisis at the summit later this week, and as such the decline at the stock market was not expected to be severe, with the exception of further shocks like credit rating downgrades.
On Bursa Malaysia, among the stocks that could be in focus are GUOCOLAND (MALAYSIA) BHD [], CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP), EKOVEST BHD [], MALAYSIAN RESOURCES CORP []oration Bhd and Wijaya Baru Global Berhad.
Guocoland’sunit is acquiring 46.72 acres of land worth RM107.8 million in the Cheras locality as part of its land bank expansion plan for future developments.
Its unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land located in Cheras and Mukim Petaling.
Meanwhile, CBIB secured a RM17.88 million contract from Felda Palm Industries Sdn Bhd for the conversion of the Trolak palm oil mill in Sungkai, Perak. Its unit Modipalm Engineering Sdn Bhd has accepted the letter of award to build and install the mill.
Ekovest - MRCB JV Sdn Bhd (EMJV) was picked the be the project delivery partner (PDP) by the government for to assist in the implementation and delivery of the River of Life (ROL) project.
EMJV is a joint venture between Ekovest Bhd and Malaysian Resources Corporation Bhd, where Ekovest will subscribe to 60% of the issued and paid up capital of the Company, while MRCB will subscribe to the remaining 40%. EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over three years.
It will also receive monetary incentives for the work done and the contract is expected to contribute positively to its future earnings.
Meanwhile, Wijaya Baru received its shareholders’ nod to acquire US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.
Wijaya will acquire 100% of Suffolk and Wealth Gate's shares, giving Wijaya ownership of two 40,000 ha plots of land in Irianjaya which can be converted into oil palm PLANTATION []s.
Tuesday, December 6, 2011
Stocks to watch 20111206: Proton, TRC Synergy, SapuraCrest, Hiap Teck
KUALA LUMPUR (Dec 6): The FBM KLCI could trend higher on Tuesday in line with European markets that opened higher on Monday on optimism that European leaders would find a solution to the eurozone debt crisis at a summit a later this week.
The positive mood in Europe looks set to add to the glow from last week's U.S. jobs data with stock index futures pointing to a higher open for equities on Wall Street, according to Reuters.
Market sentiment was given an early boost on Monday after Italy unveiled a 30-billion-euro package of austerity steps, and the Irish government too said it would do the something similar in a new budget to be announced later in the day, it said.
On Bursa Malaysia, stocks that could be in focus include PROTON HOLDINGS BHD [], TRC SYNERGY BHD [], SAPURACREST PETROLEUM BHD [] and HIAP TECK VENTURE BHD [].
Proton shares, which were actively traded on Monday, could continue to attract investor attention after The Edge weekly reported over the weekend that state investment arm Khazanah Nasional Bhd was likely to ask for proposals from interested parties for its stake in the carmaker.
Citing industry sources, The Edge said Khazanah had made overtures and put out feelers to the market, seeking proposals from existing car players on a business plan with regard to Proton.
Khazanah is the largest shareholder with a 42.74% stake in Proton. Proton surged 89 sen on Monday to RM4.50 with 20.1 million shares traded.
Meanwhile, TRC Synergy secured a contract worth RM38.1 million from Putrajaya Holdings Sdn Bhd to build 86 two-storey terrace houses and 14 two storey semi-detached houses in Precint 14, Putrajaya.
SapuraCrest Petroleum Bhd's net profit for the third quarter ended Oct 31, 2010 rose 51.6% to RM83.13 million, due mainly to higher contribution from marine services division.
For the nine months ended Oct 31, SapuraCrest’s net profit jumped to RM233.71 million from RM158.77 million in 2010, on the back of revenue RM1.99 billion.
Meanwhile, Hiap Teck Venture's 55% owned Eastern Steel Sdn Bhd had been granted a mining licence by Trengganu state government to mine iron ore on the area of 600 acres near Bukit Besi.
The mining concession would allow Eastern Steel to mine the area, which has estimate reserve of 40 to 50 million ton of iron ore, until the end of its mining life.
The positive mood in Europe looks set to add to the glow from last week's U.S. jobs data with stock index futures pointing to a higher open for equities on Wall Street, according to Reuters.
Market sentiment was given an early boost on Monday after Italy unveiled a 30-billion-euro package of austerity steps, and the Irish government too said it would do the something similar in a new budget to be announced later in the day, it said.
On Bursa Malaysia, stocks that could be in focus include PROTON HOLDINGS BHD [], TRC SYNERGY BHD [], SAPURACREST PETROLEUM BHD [] and HIAP TECK VENTURE BHD [].
Proton shares, which were actively traded on Monday, could continue to attract investor attention after The Edge weekly reported over the weekend that state investment arm Khazanah Nasional Bhd was likely to ask for proposals from interested parties for its stake in the carmaker.
Citing industry sources, The Edge said Khazanah had made overtures and put out feelers to the market, seeking proposals from existing car players on a business plan with regard to Proton.
Khazanah is the largest shareholder with a 42.74% stake in Proton. Proton surged 89 sen on Monday to RM4.50 with 20.1 million shares traded.
Meanwhile, TRC Synergy secured a contract worth RM38.1 million from Putrajaya Holdings Sdn Bhd to build 86 two-storey terrace houses and 14 two storey semi-detached houses in Precint 14, Putrajaya.
SapuraCrest Petroleum Bhd's net profit for the third quarter ended Oct 31, 2010 rose 51.6% to RM83.13 million, due mainly to higher contribution from marine services division.
For the nine months ended Oct 31, SapuraCrest’s net profit jumped to RM233.71 million from RM158.77 million in 2010, on the back of revenue RM1.99 billion.
Meanwhile, Hiap Teck Venture's 55% owned Eastern Steel Sdn Bhd had been granted a mining licence by Trengganu state government to mine iron ore on the area of 600 acres near Bukit Besi.
The mining concession would allow Eastern Steel to mine the area, which has estimate reserve of 40 to 50 million ton of iron ore, until the end of its mining life.
Monday, December 5, 2011
Stocks to watch 20111205: Glomac, Mah Sing, Tan Chong, Fibon
KUALA LUMPUR (Dec 3): The FBM KLCI may trend higher and again test the psychologically important 1,500 level in the week ahead, starting Monday, Dec 5 on more global liquidity and economic optimism.
On Friday, Dec 2, the FBM KLCI closed in positive territory as some key regional markets reversed their earlier losses, but gains at the local market remained muted as investor sentiment stayed cautious.
Week-on-week, the KLCI was up 57.45 points to end at 1,489 with the market capitalisation up RM39.59 billion to RM1,269.59 billion.
Affin Investment Bank head of retail research Dr Nazri Khan said the sentiment could be propped by the coordinated move by central banks including China and Brazil to ease monetary policies.
Another positive factor is the rising expectation of an aggressive cut in the ECB interest rate and stronger EU deal to resolve the debt crisis.
“However, despite the gains spotted worldwide, we recommended caution since the liquidity move is yet to address the core problems that Europe faces which is to provide a long-term sustainable funding solution to the troubled European banking community,” he said.
Dr Nazri expected the broad market to trend higher slowly as they digest more clarity on the EU plan to deal the problems (possibly disclosed in the upcoming Dec 9, EU summit).
“These may includes details on how to enforce budget balancing for troubled countries, how to implement tough austerity measures especially for Portugal, Italy, Ireland, Greece and Spain, how to leverage the rescue funds and how to strengthen the ECB to backstop future crisis,” he pointed out.
Among the stocks which could see trading interest are GLOMAC BHD [], MAH SING GROUP BHD [], TAN CHONG MOTOR HOLDINGS BHD [] and Fibon Bhd.
Glomac's net profit for the second quarter ended Oct 31, 2011 rose 50pct to RM23.78 million from RM15.88 million a year ago, underpinned by on-going projects particularly Glomac Damansara, Glomac Cyberjaya, Saujana Rawang and Bandar Saujana Utama.
Its revenue for the quarter however declined 4.3pct to RM134.83 million from RM140.89 million, due to completion of two projects namely Glomac Tower and Glomac Galleria.
Mah Sing's proposed joint development of 4.08 acres of prime land along Jalan Tun Razak-Jalan Pahang faced a setback after the conditions were not met.
However, Mah Sing said it would explore options to move ahead on this. The project is a niche development – M Sentral -- with an estimated gross development value of RM900 million and it is part of the RM9-billion 58 acre riverside urban regeneration project.
The Edge weekly reports that Tan Chong Motor Holdings Bhd, which invested nearly US$45 million in Nissan Vietnam Co Ltd since acquiring a controlling stake in the company last year, is optimistic that it will reach break-even earlier than anticipated.
Meanwhile, Fibon – a chemical compounds producer -- is poised to enter a new phase of growth with the upcoming launch of its new switchboard Fibon LogiCube.
Anther company which could see trading interest are sports shoe sole manufacturer Xingquan International Sports Holdings Ltd. Its chief executive officer Wu Qingquan is confident that it can maintain its double digit growth in revenue for the financial year ending June 2012, said. The compound annual growth rate from 2006 to 2011 was 39%.
Last Friday, MMC CORPORATION BHD []'s Tanjung Bin Energy Sdn Bhd has sealed a power purchase agreement with TENAGA NASIONAL BHD [] to supply electricity over 25 years. However, the price of electricity which Tanjung Bin would sell to Tenaga was not disclosed in the statement to Bursa Malaysia.
On Friday, Dec 2, the FBM KLCI closed in positive territory as some key regional markets reversed their earlier losses, but gains at the local market remained muted as investor sentiment stayed cautious.
Week-on-week, the KLCI was up 57.45 points to end at 1,489 with the market capitalisation up RM39.59 billion to RM1,269.59 billion.
Affin Investment Bank head of retail research Dr Nazri Khan said the sentiment could be propped by the coordinated move by central banks including China and Brazil to ease monetary policies.
Another positive factor is the rising expectation of an aggressive cut in the ECB interest rate and stronger EU deal to resolve the debt crisis.
“However, despite the gains spotted worldwide, we recommended caution since the liquidity move is yet to address the core problems that Europe faces which is to provide a long-term sustainable funding solution to the troubled European banking community,” he said.
Dr Nazri expected the broad market to trend higher slowly as they digest more clarity on the EU plan to deal the problems (possibly disclosed in the upcoming Dec 9, EU summit).
“These may includes details on how to enforce budget balancing for troubled countries, how to implement tough austerity measures especially for Portugal, Italy, Ireland, Greece and Spain, how to leverage the rescue funds and how to strengthen the ECB to backstop future crisis,” he pointed out.
Among the stocks which could see trading interest are GLOMAC BHD [], MAH SING GROUP BHD [], TAN CHONG MOTOR HOLDINGS BHD [] and Fibon Bhd.
Glomac's net profit for the second quarter ended Oct 31, 2011 rose 50pct to RM23.78 million from RM15.88 million a year ago, underpinned by on-going projects particularly Glomac Damansara, Glomac Cyberjaya, Saujana Rawang and Bandar Saujana Utama.
Its revenue for the quarter however declined 4.3pct to RM134.83 million from RM140.89 million, due to completion of two projects namely Glomac Tower and Glomac Galleria.
Mah Sing's proposed joint development of 4.08 acres of prime land along Jalan Tun Razak-Jalan Pahang faced a setback after the conditions were not met.
However, Mah Sing said it would explore options to move ahead on this. The project is a niche development – M Sentral -- with an estimated gross development value of RM900 million and it is part of the RM9-billion 58 acre riverside urban regeneration project.
The Edge weekly reports that Tan Chong Motor Holdings Bhd, which invested nearly US$45 million in Nissan Vietnam Co Ltd since acquiring a controlling stake in the company last year, is optimistic that it will reach break-even earlier than anticipated.
Meanwhile, Fibon – a chemical compounds producer -- is poised to enter a new phase of growth with the upcoming launch of its new switchboard Fibon LogiCube.
Anther company which could see trading interest are sports shoe sole manufacturer Xingquan International Sports Holdings Ltd. Its chief executive officer Wu Qingquan is confident that it can maintain its double digit growth in revenue for the financial year ending June 2012, said. The compound annual growth rate from 2006 to 2011 was 39%.
Last Friday, MMC CORPORATION BHD []'s Tanjung Bin Energy Sdn Bhd has sealed a power purchase agreement with TENAGA NASIONAL BHD [] to supply electricity over 25 years. However, the price of electricity which Tanjung Bin would sell to Tenaga was not disclosed in the statement to Bursa Malaysia.
Thursday, December 1, 2011
Stocks to watch 20111201: Maxis, Axiata, E&O, Tanjung, PJI
KUALA LUMPUR (Dec 1): After the flurry of corporate results for the quarter ended Sept 30, 2011, stocks which could see trading interest on Thursday include Maxis Bhd, Axiata Group Bhd and Eastern & Oriental Bhd (E&O).
Other companies which could also come under focus following fresh contracts are PJI HOLDINGS BHD [], TANJUNG OFFSHORE BHD [] and MALAYSIAN RESOURCES CORP []oration Bhd (MRCB).
Maxis’ earnings fell 10.6% to RM537 million in the third quarter ended Sept 30 from RM610 million a year ago on higher administrative expenses and network operation costs. Revenue was 1.3% higher at RM2.244 billion from RM2.216 billion a year ago, while earnings per share were 7.2 sen compared with 8.0 sen. It declared a third interim single-tier tax exempt dividend of 8.0 sen per share.
Meanwhile, Axiata’s earnings fell 7.7% to RM589.62 million in the third quarter ended Sept 30, 2011 from RM639.12 million a year ago on foreign exchange translation losses and higher costs. Net foreign exchange losses surged to RM43.91 million compared with gains on financing activities of RM71.96 million a year ago.
E&O saw its earnings surge 172% to RM13.83 million from RM5.08 million a year ago. Its revenue increased by 25.5% to RM82.60 million from RM65.81 million while earnings per share were 1.27 sen compared with 0.48 sen.
Tanjung Offshore’s subsidiary, Tanjung Maintenance Services Sdn Bhd has secured a RM43 million contract from Petronas Carigali Sdn Bhd. The contract was to provide maintenance services for mechanical rotating equipment at all offshore platforms operated by Petronas Carigali in the Sarawak operations region .
PJI Holdings Bhd’s unit has secured two contracts worth RM59.64 million at the KLIA2 involving the low voltage system for several locations at the KLIA2.
Its unit P.J. Indah Sdn Bhd had accepted the letter of award from BINA PURI HOLDINGS BHD [] to formalise the sub-contract valued at RM25.16 million.
P.J. Indah had also accepted a RM34.64 million contract from UEM CONSTRUCTION [] Sdn Bhd for the design, supply and maintenance of the low voltage system, uninterruptible power supply and lightning protection system at KLIA2.
MRCB has secured a RM40.3 million contract to carry out coastal protection works at the Sungai Perai river mouth. MRCB said it had received the letter of award from the Department of Irrigation and Drainage for the third phase of the project.
FABER GROUP BHD [] posted net losses of RM26.87 million in the third quarter ended Sept 30, 2011 compared with net profit of RM29.01 million a year ago. The losses were mainly due to the recognition of costs amounting to RM44.5 million for works completed for the projects in the United Arab Emirates (UAE) where the corresponding revenue was not recognised as it could not be measured reliably.
KUB MALAYSIA BHD [] posted net loss of RM12.86 million in the third quarter ended Sept 30, a vast contrast from the net profit of RM2.49 million a year ago. KUB had undertaken impairment assessments on its assets of underperforming subsidiaries and decided to provide impairment losses of RM14.70 million.
Other companies which could also come under focus following fresh contracts are PJI HOLDINGS BHD [], TANJUNG OFFSHORE BHD [] and MALAYSIAN RESOURCES CORP []oration Bhd (MRCB).
Maxis’ earnings fell 10.6% to RM537 million in the third quarter ended Sept 30 from RM610 million a year ago on higher administrative expenses and network operation costs. Revenue was 1.3% higher at RM2.244 billion from RM2.216 billion a year ago, while earnings per share were 7.2 sen compared with 8.0 sen. It declared a third interim single-tier tax exempt dividend of 8.0 sen per share.
Meanwhile, Axiata’s earnings fell 7.7% to RM589.62 million in the third quarter ended Sept 30, 2011 from RM639.12 million a year ago on foreign exchange translation losses and higher costs. Net foreign exchange losses surged to RM43.91 million compared with gains on financing activities of RM71.96 million a year ago.
E&O saw its earnings surge 172% to RM13.83 million from RM5.08 million a year ago. Its revenue increased by 25.5% to RM82.60 million from RM65.81 million while earnings per share were 1.27 sen compared with 0.48 sen.
Tanjung Offshore’s subsidiary, Tanjung Maintenance Services Sdn Bhd has secured a RM43 million contract from Petronas Carigali Sdn Bhd. The contract was to provide maintenance services for mechanical rotating equipment at all offshore platforms operated by Petronas Carigali in the Sarawak operations region .
PJI Holdings Bhd’s unit has secured two contracts worth RM59.64 million at the KLIA2 involving the low voltage system for several locations at the KLIA2.
Its unit P.J. Indah Sdn Bhd had accepted the letter of award from BINA PURI HOLDINGS BHD [] to formalise the sub-contract valued at RM25.16 million.
P.J. Indah had also accepted a RM34.64 million contract from UEM CONSTRUCTION [] Sdn Bhd for the design, supply and maintenance of the low voltage system, uninterruptible power supply and lightning protection system at KLIA2.
MRCB has secured a RM40.3 million contract to carry out coastal protection works at the Sungai Perai river mouth. MRCB said it had received the letter of award from the Department of Irrigation and Drainage for the third phase of the project.
FABER GROUP BHD [] posted net losses of RM26.87 million in the third quarter ended Sept 30, 2011 compared with net profit of RM29.01 million a year ago. The losses were mainly due to the recognition of costs amounting to RM44.5 million for works completed for the projects in the United Arab Emirates (UAE) where the corresponding revenue was not recognised as it could not be measured reliably.
KUB MALAYSIA BHD [] posted net loss of RM12.86 million in the third quarter ended Sept 30, a vast contrast from the net profit of RM2.49 million a year ago. KUB had undertaken impairment assessments on its assets of underperforming subsidiaries and decided to provide impairment losses of RM14.70 million.
Tuesday, November 29, 2011
Stocks to watch 20111129: MCIL, Sime, MRCB, IJM, Kulim
KUALA LUMPUR (Nov 27): The market sentiment is expected to stay cautious when it reopens for trading on Tuesday, Nov 29 as external factors arising from the eurozone will continue to weigh.
According to Reuters, France and Germany are planning a quick new pact on budget discipline that might persuade the European Central Bank to ramp up its government bond purchases.
The news report, quoting Germany’s Welt am Sonntag newspaper on Sunday, said the French and German leaders were prepared to back a deal with other euro countries that might induce the ECB to intervene more forcefully to calm the euro debt crisis.
If all goes, well this would be positive for the markets and hopefully shore up Malaysia's market sentiment.
At Bursa Malaysia, the market is down for November, extending several months of decline due to the eurozone and US crisis.
Stock market data showed the FBM KLCI is down 4% or 60.34 points from 1,491.89 on Oct 31 after it closed at 1,431.55 on Nov 25. Market capitalisation was reduced by RM38 billion to RM1.230 trilllion from RM1.268 trillion.
Among the stocks to watch are SIME DARBY BHD [], MALAYSIAN RESOURCES CORP []oration Bhd (MRCB), IJM CORPORATION BHD [], KULIM (M) BHD [] following the recent corporate announcements.
Meanwhile, The Edge weekly reports that MEDIA CHINESE INTERNATIONAL LT []d (MCIL), a newspaper publisher with the most Chinese titles in the world, has jumped onto the non-print media bandwagon and is scouting around for opportunities in TV and radio.
Last Friday, Sime Darby reported its net profit for the first quarter ended Sept 30, 2011 jumped 63.9% to RM1.07 billion from RM654.74 million a year ago, boosted by stronger results of the PLANTATION []s and industrial divisions.
Its revenue for the quarter rose 27.5pct to RM11.06 billion from RM8.67 billion in 2010.
MRCB’s net profit for the third quarter ended Sept 30, 2011 jumped 191pct to RM10.72 million from RM3.68 million a year ago, due mainly to higher contribution from its revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
IJM Corp’s second quarter earnings fell 35% to RM74.77 from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
Kulim’s earnings slumped 39.9% to RM171.07 million in the third quarter ended Sept 30 from RM284.65 million a year ago following the disposal of oleochemicals group that recorded a profit of RM156 million last year. Kulim declared a single tier interim dividend of 20%.
For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million while revenue rose at a slightly stronger pace of 29.2% to RM5.240 billion from RM4.056 billion.
Kulim’s related companies, KFC Holdings (Malaysia) Bhd and QSR BRANDS BHD [] also recorded a decline in earnings due to higher commodity prices.
KFCH reported a 12.2% decline in its third quarter earnings to RM33.52 million from RM38.20 million a year ago as it was affected by the higher food, commodity and energy costs.
QSR’s earnings fell 10.5% to RM22.22 million in the third quarter ended Sept 30 from RM25.33 million a year ago, as its margins were affected by inflationary pressures including commodity costs. Revenue increased 10% to RM821.49 million from RM746.49 million while earnings per share were 8.13 sen versus 9.22 sen.
According to Reuters, France and Germany are planning a quick new pact on budget discipline that might persuade the European Central Bank to ramp up its government bond purchases.
The news report, quoting Germany’s Welt am Sonntag newspaper on Sunday, said the French and German leaders were prepared to back a deal with other euro countries that might induce the ECB to intervene more forcefully to calm the euro debt crisis.
If all goes, well this would be positive for the markets and hopefully shore up Malaysia's market sentiment.
At Bursa Malaysia, the market is down for November, extending several months of decline due to the eurozone and US crisis.
Stock market data showed the FBM KLCI is down 4% or 60.34 points from 1,491.89 on Oct 31 after it closed at 1,431.55 on Nov 25. Market capitalisation was reduced by RM38 billion to RM1.230 trilllion from RM1.268 trillion.
Among the stocks to watch are SIME DARBY BHD [], MALAYSIAN RESOURCES CORP []oration Bhd (MRCB), IJM CORPORATION BHD [], KULIM (M) BHD [] following the recent corporate announcements.
Meanwhile, The Edge weekly reports that MEDIA CHINESE INTERNATIONAL LT []d (MCIL), a newspaper publisher with the most Chinese titles in the world, has jumped onto the non-print media bandwagon and is scouting around for opportunities in TV and radio.
Last Friday, Sime Darby reported its net profit for the first quarter ended Sept 30, 2011 jumped 63.9% to RM1.07 billion from RM654.74 million a year ago, boosted by stronger results of the PLANTATION []s and industrial divisions.
Its revenue for the quarter rose 27.5pct to RM11.06 billion from RM8.67 billion in 2010.
MRCB’s net profit for the third quarter ended Sept 30, 2011 jumped 191pct to RM10.72 million from RM3.68 million a year ago, due mainly to higher contribution from its revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
IJM Corp’s second quarter earnings fell 35% to RM74.77 from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
Kulim’s earnings slumped 39.9% to RM171.07 million in the third quarter ended Sept 30 from RM284.65 million a year ago following the disposal of oleochemicals group that recorded a profit of RM156 million last year. Kulim declared a single tier interim dividend of 20%.
For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million while revenue rose at a slightly stronger pace of 29.2% to RM5.240 billion from RM4.056 billion.
Kulim’s related companies, KFC Holdings (Malaysia) Bhd and QSR BRANDS BHD [] also recorded a decline in earnings due to higher commodity prices.
KFCH reported a 12.2% decline in its third quarter earnings to RM33.52 million from RM38.20 million a year ago as it was affected by the higher food, commodity and energy costs.
QSR’s earnings fell 10.5% to RM22.22 million in the third quarter ended Sept 30 from RM25.33 million a year ago, as its margins were affected by inflationary pressures including commodity costs. Revenue increased 10% to RM821.49 million from RM746.49 million while earnings per share were 8.13 sen versus 9.22 sen.
Wednesday, November 23, 2011
Stocks to watch 20111123: AirAsia, Mudajaya, Petra Energy, BDRB, PPB
KUALA LUMPUR (Nov 23): AIRASIA BHD [] could be in focus on Wednesday after it reported a weaker set of financial results following the impact of higher fuel expense and staff costs.
Other companies which could come under the radar of investors are MUDAJAYA GROUP BHD [], PETRA ENERGY BHD [], BANDAR RAYA DEVELOPMENTS BHD [] and PPB GROUP BHD [].
AirAsia’s earnings for the third quarter ended Sept 30, 2011 fell 53.46% to RM152.29 million from RM327.29 million a year earlier, due mainly to higher fuel expense and staff costs. Revenue for the quarter rose 9.87% to RM1.08 billion from RM979.71 million in 2010.
For the nine months ended Sept 30, the low-cost carrier’s net profit fell 42.89% to RM428.49 million from RM750.33 million in 2010, despite posting an increase in revenue to RM3.2 billion from RM2.78 billion.
Mudajaya’s net profit jumped 76% to RM63 million from RM46.54 million, aided by a currency translation gain of RM19.39 million compared with loss of RM14.95 million a year ago.
It said on Tuesday its revenue increased at the same pace, up 76.4% to RM337.21 million from RM191.15 million.
For the nine-month period, its earnings showed an increase of 8.7% to RM164.54 million from the RM151.36 million in the previous corresponding period. Revenue rose 43.3% to RM916.39 million from RM639.14 million.
Petra Energy Bhd posted net loss of RM13.68 million in the third quarter ended Sept 30, 2011, a contrast from the net profit of RM4.75 million a year ago mainly due to the additional recognition of losses in the onshore civil engineering services on completion of the Kumang project.
It said revenue was flat at RM158.59 million compared with RM158.94 million a year ago while loss per share was 7.02 sen compared with earnings per share of 2.44 sen.
BDRB posted net profit of RM28.40 million in the third quarter ended Sept 30 compared with net loss of RM745,000 a year ago due to better property development gross margins. Other positive factors were higher rental income and gain from disposal of the gourmet delicatessen and foodhall business in the property division.
In a separate development, BDRB said its major shareholder Ambang Sehati Sdn Bhd is mulling the possibility of increasing its stake in BDRB.
BDRB said during its board meeting on Tuesday, an Ambang Sehati representative informed that “it is exploring the possibility of increasing its stake in the company via various means, which may or may not result in a general offer”.
PPB’s earnings fell 20.3% to RM229.40 million in the third quarter ended Sept 30 from RM287.99 million a year mainly due to lower contribution from its associate, Wilmar International Ltd. PPB’s revenue rose 23.6% to RM710.26 million from RM574.53 million while earnings per share were 19.35 sen from 24.29 sen.
TIME ENGINEERING BHD [] posted net profit of RM89.70 million in the third quarter ended Sept 30, up 709% from RM11.08 million a year ago, boosted by a gain of RM91.92 million from the disposal of investment. Its revenue slipped 2.9% to RM15.44 million from RM15.91 million mainly due to reduction in the group’s system integration business.
Other companies which could come under the radar of investors are MUDAJAYA GROUP BHD [], PETRA ENERGY BHD [], BANDAR RAYA DEVELOPMENTS BHD [] and PPB GROUP BHD [].
AirAsia’s earnings for the third quarter ended Sept 30, 2011 fell 53.46% to RM152.29 million from RM327.29 million a year earlier, due mainly to higher fuel expense and staff costs. Revenue for the quarter rose 9.87% to RM1.08 billion from RM979.71 million in 2010.
For the nine months ended Sept 30, the low-cost carrier’s net profit fell 42.89% to RM428.49 million from RM750.33 million in 2010, despite posting an increase in revenue to RM3.2 billion from RM2.78 billion.
Mudajaya’s net profit jumped 76% to RM63 million from RM46.54 million, aided by a currency translation gain of RM19.39 million compared with loss of RM14.95 million a year ago.
It said on Tuesday its revenue increased at the same pace, up 76.4% to RM337.21 million from RM191.15 million.
For the nine-month period, its earnings showed an increase of 8.7% to RM164.54 million from the RM151.36 million in the previous corresponding period. Revenue rose 43.3% to RM916.39 million from RM639.14 million.
Petra Energy Bhd posted net loss of RM13.68 million in the third quarter ended Sept 30, 2011, a contrast from the net profit of RM4.75 million a year ago mainly due to the additional recognition of losses in the onshore civil engineering services on completion of the Kumang project.
It said revenue was flat at RM158.59 million compared with RM158.94 million a year ago while loss per share was 7.02 sen compared with earnings per share of 2.44 sen.
BDRB posted net profit of RM28.40 million in the third quarter ended Sept 30 compared with net loss of RM745,000 a year ago due to better property development gross margins. Other positive factors were higher rental income and gain from disposal of the gourmet delicatessen and foodhall business in the property division.
In a separate development, BDRB said its major shareholder Ambang Sehati Sdn Bhd is mulling the possibility of increasing its stake in BDRB.
BDRB said during its board meeting on Tuesday, an Ambang Sehati representative informed that “it is exploring the possibility of increasing its stake in the company via various means, which may or may not result in a general offer”.
PPB’s earnings fell 20.3% to RM229.40 million in the third quarter ended Sept 30 from RM287.99 million a year mainly due to lower contribution from its associate, Wilmar International Ltd. PPB’s revenue rose 23.6% to RM710.26 million from RM574.53 million while earnings per share were 19.35 sen from 24.29 sen.
TIME ENGINEERING BHD [] posted net profit of RM89.70 million in the third quarter ended Sept 30, up 709% from RM11.08 million a year ago, boosted by a gain of RM91.92 million from the disposal of investment. Its revenue slipped 2.9% to RM15.44 million from RM15.91 million mainly due to reduction in the group’s system integration business.
Tuesday, November 22, 2011
Stocks to watch 20111122: Triplc, Harvest, Alam Maritim, Eversendai, Mah Sing
KUALA LUMPUR (Nov 22): Market sentiment is expected to be cautious on Tuesday with investors again staying on the sidelines as the euro zone's debt crisis struck again at the heart of Europe.
In the UK, bank and commodity stocks weighed on the FTSE 100 at midday on Monday, with clouds gathering over the prospect for global growth as U.S. debt talks broke down and France was told it could lose its Aaa rating from Moody's, Reuters reported.
Meanwhile, billionaire investor Warren Buffett warned of a major flaw in the 17-member euro zone system and added it would take more than words to fix it.
At Bursa Malaysia, which saw the FBM KLCI sliding 1.4% or 20.32 points to 1,434.08, dragged by key blue chips including Genting, MISC and index-linked PLANTATION [] stocks on Monday, there would not be any rush to buy equities.
Among the stocks to watch are TRIPLC BHD [], HARVEST COURT INDUSTRIES BHD [], ALAM MARITIM RESOURCES BHD [], Eversendai Corporation Bhd, MAH SING GROUP BHD [], LATEXX PARTNERS BHD [] and UNITED PLANTATIONS BHD [].
Triplc will be uplifted from the Practice Note 17 classification on Tuesday after it had regularised its financial condition.
This will see the listing and quotation of 6.367 million settlement shares issued pursuant to the capitalisation of RM6.36 million or 25% of the RM25.47 million in debts owing by the group to certain substantial shareholders and creditors and the waiver of the remaining 75% of such debts amounting to RM19 million.
Also to be quoted are 64.02 million shares of RM1 each issued under the consolidation of every 100 shares of 43 sen each into 43 shares subsequent to the reduction of the paid-up b cancelling 57 sen of the par value of each of the 148.88 million shares in issue after the capitalisation.
Harvest Court announced Mohd Nazifuddin Najib has resigned as an independent director on Monday. He was appointed to the board on Oct 28. Nazifuddin still owns 3.98 million Harvest Court shares.
Alam Maritim’s third quarter net profit rose 50.5% to RM13.33 million from RM8.92 million a year ago, underpinned by its offshore support vessels segment. Its revenue increased by 71.3% to RM116.03 million from RM67.69 million while earnings per share were 1.70 sen compared with 1.20 sen.
Eversendai’s order book increased to RM1.60 billion with the latest contract secured by its subsidiary Shin Eversendai Engineering (M) Sdn Bhd to build part of the Manjung power plant. The contract was for the boiler and auxiliary equipment for the Manjung Unit 4, which was awarded by Alstom Services Sdn Bhd.
Mah Sing’s earnings jumped 45.6% to RM43.22 million in the third quarter ended Sept 30, 2011 from RM29.67 million.
It said the performance was underpinned by strong sales which exceeded the RM2-billion mark as up to Nov 15, due to the strong branding and the flexibility afforded by its comprehensive portfolio of PROPERTIES [].
Latexx Partners’ net profit for the third quarter ended Sept 30, 2011 fell 27.8% to RM12.73 million from RM17.63 million a year earlier, due mainly to the persistently high raw material prices and the weaker US dollar. Its revenue for the quarter slipped 6.2% to RM121.81 million from RM129.88 million in 2010.
United Plantations’ net profit for the third quarter ended Sept 30, 2011 jumped 32.6% to RM105.15 million from RM79.27 million a year earlier, driven mainly by significant improvement in the selling prices of crude palm oil (CPO) and palm kernel (PK). Its revenue for the quarter surged 59.3% to RM439 million from RM275.54 million in 2010.
The plantation company declared an interim dividend of 18.75 sen net per share for the year ending Dec 31, 2011, and a special dividend 11.25 sen net per share, to be paid on Dec 21.
In the UK, bank and commodity stocks weighed on the FTSE 100 at midday on Monday, with clouds gathering over the prospect for global growth as U.S. debt talks broke down and France was told it could lose its Aaa rating from Moody's, Reuters reported.
Meanwhile, billionaire investor Warren Buffett warned of a major flaw in the 17-member euro zone system and added it would take more than words to fix it.
At Bursa Malaysia, which saw the FBM KLCI sliding 1.4% or 20.32 points to 1,434.08, dragged by key blue chips including Genting, MISC and index-linked PLANTATION [] stocks on Monday, there would not be any rush to buy equities.
Among the stocks to watch are TRIPLC BHD [], HARVEST COURT INDUSTRIES BHD [], ALAM MARITIM RESOURCES BHD [], Eversendai Corporation Bhd, MAH SING GROUP BHD [], LATEXX PARTNERS BHD [] and UNITED PLANTATIONS BHD [].
Triplc will be uplifted from the Practice Note 17 classification on Tuesday after it had regularised its financial condition.
This will see the listing and quotation of 6.367 million settlement shares issued pursuant to the capitalisation of RM6.36 million or 25% of the RM25.47 million in debts owing by the group to certain substantial shareholders and creditors and the waiver of the remaining 75% of such debts amounting to RM19 million.
Also to be quoted are 64.02 million shares of RM1 each issued under the consolidation of every 100 shares of 43 sen each into 43 shares subsequent to the reduction of the paid-up b cancelling 57 sen of the par value of each of the 148.88 million shares in issue after the capitalisation.
Harvest Court announced Mohd Nazifuddin Najib has resigned as an independent director on Monday. He was appointed to the board on Oct 28. Nazifuddin still owns 3.98 million Harvest Court shares.
Alam Maritim’s third quarter net profit rose 50.5% to RM13.33 million from RM8.92 million a year ago, underpinned by its offshore support vessels segment. Its revenue increased by 71.3% to RM116.03 million from RM67.69 million while earnings per share were 1.70 sen compared with 1.20 sen.
Eversendai’s order book increased to RM1.60 billion with the latest contract secured by its subsidiary Shin Eversendai Engineering (M) Sdn Bhd to build part of the Manjung power plant. The contract was for the boiler and auxiliary equipment for the Manjung Unit 4, which was awarded by Alstom Services Sdn Bhd.
Mah Sing’s earnings jumped 45.6% to RM43.22 million in the third quarter ended Sept 30, 2011 from RM29.67 million.
It said the performance was underpinned by strong sales which exceeded the RM2-billion mark as up to Nov 15, due to the strong branding and the flexibility afforded by its comprehensive portfolio of PROPERTIES [].
Latexx Partners’ net profit for the third quarter ended Sept 30, 2011 fell 27.8% to RM12.73 million from RM17.63 million a year earlier, due mainly to the persistently high raw material prices and the weaker US dollar. Its revenue for the quarter slipped 6.2% to RM121.81 million from RM129.88 million in 2010.
United Plantations’ net profit for the third quarter ended Sept 30, 2011 jumped 32.6% to RM105.15 million from RM79.27 million a year earlier, driven mainly by significant improvement in the selling prices of crude palm oil (CPO) and palm kernel (PK). Its revenue for the quarter surged 59.3% to RM439 million from RM275.54 million in 2010.
The plantation company declared an interim dividend of 18.75 sen net per share for the year ending Dec 31, 2011, and a special dividend 11.25 sen net per share, to be paid on Dec 21.
Monday, November 21, 2011
Stocks to watch 20111121: IOI Corp, MEGB, Affin, Benalec, Texchem
KUALA LUMPUR (Nov 19): Sentiment is expected to stay cautious in the week ahead as investors worry about whether the governments in Europe and the US could resolve the growing debt problems.
Reuters said a major question has been whether the European Central Bank will find a way to act as a lender of last resort in the manner of the U.S. Federal Reserve. Speculation has grown the ECB could lend money to the International Monetary Fund to bail out some euro zone members.
The Dow Jones industrial average gained 25.43 points, or 0.22%, to 11,796.16. The S&P 500 dipped 0.48 point, or 0.04%, to 1,215.65. The Nasdaq Composite lost 15.49 points, or 0.60%, to 2,572.50. However, for the week, the Dow fell 2.9%, the S&P dropped 3.8% and the Nasdaq lost 4%.
As for Malaysia, while third quarter GDP expanded at a stronger pace of 5.8% on-year from a revised 4.3% in the second quarter, there were gnawing concerns about the headwinds in the fourth quarter and 2012.
RHB Research Institute said it tweaked its real GDP growth estimate for 2011 upwards to 5% from 4.5%.
“However, we are keeping our 2012 forecast unchanged and expect the economic growth to weaken to 3.6%, given that Eurozone’s sovereign debt crisis is still lingering and risk of it worsening remains high, and on the back of a slow US economic growth,” it said.
Stocks to watch on Monday include IOI CORPORATION BHD [], Masterskill Education Group Bhd (MEGB), AFFIN HOLDINGS BHD [], Benalec Holdings Bhd and TEXCHEM RESOURCES BHD [].
IOI’s net profit for the first quarter ended Sept 30, 2011 fell 48.2% to RM258.09 million from RM498.13 million a year ago, due mainly to unrealised translation loss on foreign currency denominated borrowings of RM271.7million. The loss was higher than analysts’ estimates. The PLANTATION [] company’s revenue for the quarter rose 17.9% to RM4.15 billion from RM3.52 billion a year ago.
Meanwhile, MEGB’s net profit for the third quarter ended Sept 30, 2011 fell 78.8% to RM5.55 million from RM26.18 million a year ago. It attributed the poorer financial performance mainly to lower student enrolment and higher overheads. MEGB’s revenue for the quarter fell to RM61.19 million from RM80.68 million in 2010.
For the nine months ended Sept 30, MEGB’s net profit fell 47.2% to RM39.72 million from RM75.29 million in 2010, while its revenue fell 14.5% to RM200.67 million from RM234.83 million.
However, Affin reported an improvement in its earnings, which rose 17.5% to RM135.19 million in the third quarter ended Sept 30, 2011 from RM115.01 million a year ago, boosted by higher write-backs and higher Islamic banking income.
Its revenue increased 13.7% to RM680.12 million from RM597.82 million a year ago while earnings per share were 9.05 sen compared with 7.70 sen. It declared an interim dividend of 12 sen a share.
The Edge weekly reported that Benalec’s recent foray into land reclamation works at the oil and gas hub in Johor has raised some eyebrows. But if all goes well, the project will boost the total outstanding gross development value of its projects from about RM1.5 billion to over RM15 billion, said the report.
Another company to watch is Texchem on expectations it may unlocking value of some of its assets.
RAM Rating Services Bhd said the corporate exercise by Texchem would generate significant net cash inflows that will help to considerably strengthen its balance sheet and liquidity position.
However, the ratings agency was also concerned about its financial health. It downgraded the long-term rating of Texchem’s RM100 million debt notes from A3 to BBB1 with a negative outlook on rising concerns about the company's weakening financial performance.
RAM Ratings said the downgrading of Texchem’s long-term rating was based on its weakened business and financial performance.
Reuters said a major question has been whether the European Central Bank will find a way to act as a lender of last resort in the manner of the U.S. Federal Reserve. Speculation has grown the ECB could lend money to the International Monetary Fund to bail out some euro zone members.
The Dow Jones industrial average gained 25.43 points, or 0.22%, to 11,796.16. The S&P 500 dipped 0.48 point, or 0.04%, to 1,215.65. The Nasdaq Composite lost 15.49 points, or 0.60%, to 2,572.50. However, for the week, the Dow fell 2.9%, the S&P dropped 3.8% and the Nasdaq lost 4%.
As for Malaysia, while third quarter GDP expanded at a stronger pace of 5.8% on-year from a revised 4.3% in the second quarter, there were gnawing concerns about the headwinds in the fourth quarter and 2012.
RHB Research Institute said it tweaked its real GDP growth estimate for 2011 upwards to 5% from 4.5%.
“However, we are keeping our 2012 forecast unchanged and expect the economic growth to weaken to 3.6%, given that Eurozone’s sovereign debt crisis is still lingering and risk of it worsening remains high, and on the back of a slow US economic growth,” it said.
Stocks to watch on Monday include IOI CORPORATION BHD [], Masterskill Education Group Bhd (MEGB), AFFIN HOLDINGS BHD [], Benalec Holdings Bhd and TEXCHEM RESOURCES BHD [].
IOI’s net profit for the first quarter ended Sept 30, 2011 fell 48.2% to RM258.09 million from RM498.13 million a year ago, due mainly to unrealised translation loss on foreign currency denominated borrowings of RM271.7million. The loss was higher than analysts’ estimates. The PLANTATION [] company’s revenue for the quarter rose 17.9% to RM4.15 billion from RM3.52 billion a year ago.
Meanwhile, MEGB’s net profit for the third quarter ended Sept 30, 2011 fell 78.8% to RM5.55 million from RM26.18 million a year ago. It attributed the poorer financial performance mainly to lower student enrolment and higher overheads. MEGB’s revenue for the quarter fell to RM61.19 million from RM80.68 million in 2010.
For the nine months ended Sept 30, MEGB’s net profit fell 47.2% to RM39.72 million from RM75.29 million in 2010, while its revenue fell 14.5% to RM200.67 million from RM234.83 million.
However, Affin reported an improvement in its earnings, which rose 17.5% to RM135.19 million in the third quarter ended Sept 30, 2011 from RM115.01 million a year ago, boosted by higher write-backs and higher Islamic banking income.
Its revenue increased 13.7% to RM680.12 million from RM597.82 million a year ago while earnings per share were 9.05 sen compared with 7.70 sen. It declared an interim dividend of 12 sen a share.
The Edge weekly reported that Benalec’s recent foray into land reclamation works at the oil and gas hub in Johor has raised some eyebrows. But if all goes well, the project will boost the total outstanding gross development value of its projects from about RM1.5 billion to over RM15 billion, said the report.
Another company to watch is Texchem on expectations it may unlocking value of some of its assets.
RAM Rating Services Bhd said the corporate exercise by Texchem would generate significant net cash inflows that will help to considerably strengthen its balance sheet and liquidity position.
However, the ratings agency was also concerned about its financial health. It downgraded the long-term rating of Texchem’s RM100 million debt notes from A3 to BBB1 with a negative outlook on rising concerns about the company's weakening financial performance.
RAM Ratings said the downgrading of Texchem’s long-term rating was based on its weakened business and financial performance.
Friday, November 18, 2011
Stocks to watch 20111118: TSH, Tradewinds Plantations, WCT, MMHE, YTL
KUALA LUMPUR (Nov 18): The flurry of corporate results could help provide the direction of the market on Friday despite the external factors from the eurozone which are weighing down sentiment.
Among the stocks which could also see trading interest is IOI Corp, which will announce its results. Maybank Investment Bank Research aid the first quarter earnings for the period ended Sept 30 were expected to be weaker on-quarter.
“Sentiment may be dampened by huge forex translation loss of c.RM230m in 1QFY12 following a weaker ringgit,” it said on Thursday.
Bank Negara Malaysia will announce the third quarter GDP performance later Friday and also provide an outlook for the economy going forward.
Stocks to watch are TSH RESOURCES BHD [], Tradewinds PLANTATION []s Bhd, WCT BHD [], Malaysia Marine and Heavy Engineering Holdings Bhd and YTL Corp and the group of companies.
TSH Resources's net profit surged 89% to RM34.47 million in the third quarter ended Sept 30, 2011 from RM18.24 million a year ago, underpinned the performance of its palm and bio-integration segment.
Its revenue for the quarter rose 27.5% to RM273.15 million from RM214.26 million in 2010. Earnings per share rose to 8.41 sen from 4.45 sen in 2010, while net assets per share was RM2.06.
For the nine months ended Sept 30, TSH’s net profit jumped 131% to RM94.39 million from RM40.83 million in 2010 while revenue increased by 29.2% to RM855.69 million from RM662.22 million in 2010.
Tradewinds Plantations' earnings jumped 96% to RM98.80 million in the third quarter ended Sept 30 from RM50.29 million a year ago, as it benefited from higher prices and production of palm products.
Its revenue increased 39.6% to RM333.54 million from RM238.84 million while earnings per share were 15.7 sen compared with RM238.84 million.
Tradewinds Plantations said for the nine months ended Sept 30, its earnings increase 130.4% to RM237.51 million from RM103.07 million while revenue rose 46% to RM899.26 million from RM615.67 million.
WCT Bhd reported a 28.5% increase in earnings to RM38.29 million in the third quarter from RM30.56 million a year ago, mainly due to higher contribution from the civil engineering and CONSTRUCTION [] division.
Its revenue was marginally higher by 1.3% to RM361.97 million from RM357.14 million. However, the third quarter’s revenue and net profit were lower when compared with the second quarter where the revenue was RM376 million and earnings at RM38 million.
For the nine-month period, the earnings rose 15.3% to RM114.48 million from RM99.26 million in the previous corresponding period. Revenue, however, declined 17.1% to RM1.053 billion from RM1.270 billion.
MMHE reported a 3.2% increase in net profit to RM80.22 million in the quarter ended Sept 30 from RM77.71 million a year ago. However, its revenue during the quarter fell 54.7% to RM463.09 million from RM1.022 billion.
In the nine-month period from January to September, its earnings fell 15.2% to RM159.51 million from RM188.28 million a year ago. Revenue slumped 35.2% to RM1.420 billion from RM2.195 billion.
YTL CORPORATION BHD []’s earnings fell 9.7% to RM251.8 million (US$80.5 million) in the first quarter ended Sept 30, 2011 from RM278.9 million (US$89.1 million) a year ago. It said the lower earnings were due to loss incurred in the nascent ‘Yes’ mobile broadband division.
The group revenue grew 3.1% to RM4.543 billion from RM4.405 billion but pretax profit declined 15% to RM530.1 million from RM623.8 million.
Among the stocks which could also see trading interest is IOI Corp, which will announce its results. Maybank Investment Bank Research aid the first quarter earnings for the period ended Sept 30 were expected to be weaker on-quarter.
“Sentiment may be dampened by huge forex translation loss of c.RM230m in 1QFY12 following a weaker ringgit,” it said on Thursday.
Bank Negara Malaysia will announce the third quarter GDP performance later Friday and also provide an outlook for the economy going forward.
Stocks to watch are TSH RESOURCES BHD [], Tradewinds PLANTATION []s Bhd, WCT BHD [], Malaysia Marine and Heavy Engineering Holdings Bhd and YTL Corp and the group of companies.
TSH Resources's net profit surged 89% to RM34.47 million in the third quarter ended Sept 30, 2011 from RM18.24 million a year ago, underpinned the performance of its palm and bio-integration segment.
Its revenue for the quarter rose 27.5% to RM273.15 million from RM214.26 million in 2010. Earnings per share rose to 8.41 sen from 4.45 sen in 2010, while net assets per share was RM2.06.
For the nine months ended Sept 30, TSH’s net profit jumped 131% to RM94.39 million from RM40.83 million in 2010 while revenue increased by 29.2% to RM855.69 million from RM662.22 million in 2010.
Tradewinds Plantations' earnings jumped 96% to RM98.80 million in the third quarter ended Sept 30 from RM50.29 million a year ago, as it benefited from higher prices and production of palm products.
Its revenue increased 39.6% to RM333.54 million from RM238.84 million while earnings per share were 15.7 sen compared with RM238.84 million.
Tradewinds Plantations said for the nine months ended Sept 30, its earnings increase 130.4% to RM237.51 million from RM103.07 million while revenue rose 46% to RM899.26 million from RM615.67 million.
WCT Bhd reported a 28.5% increase in earnings to RM38.29 million in the third quarter from RM30.56 million a year ago, mainly due to higher contribution from the civil engineering and CONSTRUCTION [] division.
Its revenue was marginally higher by 1.3% to RM361.97 million from RM357.14 million. However, the third quarter’s revenue and net profit were lower when compared with the second quarter where the revenue was RM376 million and earnings at RM38 million.
For the nine-month period, the earnings rose 15.3% to RM114.48 million from RM99.26 million in the previous corresponding period. Revenue, however, declined 17.1% to RM1.053 billion from RM1.270 billion.
MMHE reported a 3.2% increase in net profit to RM80.22 million in the quarter ended Sept 30 from RM77.71 million a year ago. However, its revenue during the quarter fell 54.7% to RM463.09 million from RM1.022 billion.
In the nine-month period from January to September, its earnings fell 15.2% to RM159.51 million from RM188.28 million a year ago. Revenue slumped 35.2% to RM1.420 billion from RM2.195 billion.
YTL CORPORATION BHD []’s earnings fell 9.7% to RM251.8 million (US$80.5 million) in the first quarter ended Sept 30, 2011 from RM278.9 million (US$89.1 million) a year ago. It said the lower earnings were due to loss incurred in the nascent ‘Yes’ mobile broadband division.
The group revenue grew 3.1% to RM4.543 billion from RM4.405 billion but pretax profit declined 15% to RM530.1 million from RM623.8 million.
Thursday, November 17, 2011
Stocks to watch 20111117: Dialog, Malton, Tanjung Offshore, AMMB
KUALA LUMPUR (Nov 17): Stocks which could see trading interest on Thursday include DIALOG GROUP BHD [], MALTON BHD [], TANJUNG OFFSHORE BHD [], AMMB HOLDINGS BHD [], Amway (Malaysia) Holdings Bhd and ALLIANCE FINANCIAL GROUP BHD [] (AFG) following the release of their financial results for the quarter ended Sept 30.
Dialog posted net profit of RM44.54 million in the first quarter ended Sept 30, 2011, an increase of 34.6% from the RM33.09 million a year, underpinned by a strong increase in revenue, mainly from its New Zealand operations. Its revenue rose 35% to RM355.24 million from RM263.81 million while earnings per share were 2.26 sen compared with 1.69 sen.
Malton’s earnings jumped 118% to RM12.11 million in the first quarter ended Sept 30 from RM5.54 million a year ago, boosted by an improvement in the property development division from a year ago.
Revenue rose 44.3% to RM99.27 million from RM68.78 million while earnings per share were 2.90 sen versus 1.59 sen. Malton said pre-tax profit improved by 111.4% to RM16.7 million from RM7.9 million.
However, Malton's financial performance was slightly weaker compared with the immediate preceding quarter. Revenue declined from the preceding quarter’s RM167.9 million.
Tanjung Offshore Bhd swung into the red with net losses of RM429,000 in the third quarter ended Sept 30, 2011 compared with net profit of RM807,000 a year ago. Its revenue fell 14.3% to RM117.64 million from RM137.25 million a year ago. Loss per share was 0.15 sen compared with earnings per share of 0.29 sen.
For the nine months ended Sept 30, its net profit fell 51.9% to RM3.42 million from RM7.12 million a year ago while revenue was marginally lower at RM401.33 million compared with RM401.95 million. Tanjung Offshore had borrowings totaling RM560.53 million.
AMMB Holdings Bhd’s earnings rose 10.9% to RM369.47 million in the second quarter ended Sept 30,2011 from RM332.87 million a year ago, boosted by the group’s retail banking operations. Its revenue increased by 20.5% to RM2.138 billion from RM1.773 billion while earnings per share were 12.35 sen versus 11.08 sen. It declared a single tier dividend of 6.6% per share.
For the first half, its earnings increased by 15.6% to RM810.99 million while its revenue increased 17.6% to RM4.092 billion from RM3.477 billion.
Amway’s net profit rose 19.8% to RM25.77 million in the third quarter ended Sept 30, 2011 from RM21.51 million a year ago as it benefited from higher sales and improved gross margins due to the favourable foreign exchange impact. Its revenue rose at a slower pace of 5.4% to RM211.52 million from RM191.50 million while earnings per share were 15.68 sen compared with 13.08 sen.
Amway declared a third interim single tier dividend of 9.0 sen net per share and special interim single tier dividend of 30.0 sen net per share for the financial year ending Dec 31, 2011.
AFG reported a strong set of financial results for the second quarter ended Sept 30, 2011, with earnings up 18.2% to RM120.95 million from RM102.27 million a year ago. Revenue increased by 5.9% to RM314.60 million from RM296.98 million. Earnings per share were 7.9 sen compared with 6.7 sen.
For the first half, AFG's earnings rose 8.2% to RM250.51 million from RM213 million while its revenue increased 8.9% to RM624.37 million from RM573.20 million.
Dialog posted net profit of RM44.54 million in the first quarter ended Sept 30, 2011, an increase of 34.6% from the RM33.09 million a year, underpinned by a strong increase in revenue, mainly from its New Zealand operations. Its revenue rose 35% to RM355.24 million from RM263.81 million while earnings per share were 2.26 sen compared with 1.69 sen.
Malton’s earnings jumped 118% to RM12.11 million in the first quarter ended Sept 30 from RM5.54 million a year ago, boosted by an improvement in the property development division from a year ago.
Revenue rose 44.3% to RM99.27 million from RM68.78 million while earnings per share were 2.90 sen versus 1.59 sen. Malton said pre-tax profit improved by 111.4% to RM16.7 million from RM7.9 million.
However, Malton's financial performance was slightly weaker compared with the immediate preceding quarter. Revenue declined from the preceding quarter’s RM167.9 million.
Tanjung Offshore Bhd swung into the red with net losses of RM429,000 in the third quarter ended Sept 30, 2011 compared with net profit of RM807,000 a year ago. Its revenue fell 14.3% to RM117.64 million from RM137.25 million a year ago. Loss per share was 0.15 sen compared with earnings per share of 0.29 sen.
For the nine months ended Sept 30, its net profit fell 51.9% to RM3.42 million from RM7.12 million a year ago while revenue was marginally lower at RM401.33 million compared with RM401.95 million. Tanjung Offshore had borrowings totaling RM560.53 million.
AMMB Holdings Bhd’s earnings rose 10.9% to RM369.47 million in the second quarter ended Sept 30,2011 from RM332.87 million a year ago, boosted by the group’s retail banking operations. Its revenue increased by 20.5% to RM2.138 billion from RM1.773 billion while earnings per share were 12.35 sen versus 11.08 sen. It declared a single tier dividend of 6.6% per share.
For the first half, its earnings increased by 15.6% to RM810.99 million while its revenue increased 17.6% to RM4.092 billion from RM3.477 billion.
Amway’s net profit rose 19.8% to RM25.77 million in the third quarter ended Sept 30, 2011 from RM21.51 million a year ago as it benefited from higher sales and improved gross margins due to the favourable foreign exchange impact. Its revenue rose at a slower pace of 5.4% to RM211.52 million from RM191.50 million while earnings per share were 15.68 sen compared with 13.08 sen.
Amway declared a third interim single tier dividend of 9.0 sen net per share and special interim single tier dividend of 30.0 sen net per share for the financial year ending Dec 31, 2011.
AFG reported a strong set of financial results for the second quarter ended Sept 30, 2011, with earnings up 18.2% to RM120.95 million from RM102.27 million a year ago. Revenue increased by 5.9% to RM314.60 million from RM296.98 million. Earnings per share were 7.9 sen compared with 6.7 sen.
For the first half, AFG's earnings rose 8.2% to RM250.51 million from RM213 million while its revenue increased 8.9% to RM624.37 million from RM573.20 million.
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