Stocks To Watch

[nstescolias]

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday. All prices are in New Zealand dollars unless specified.

Themes of the day: Shares fell on Wall Street, with the Dow Jones Industrial Average sinking 2% after President Barack Obama proposed new rules for banks that would limit their size and trading activities. The kiwi dollar fell to 71.20 U.S. cents, continuing its slide from almost 74 cents before this week's inflation data.

Affco Holdings (AFF): The North Island meat processor yesterday announced that chief executive Stuart Weston had resigned after three years with the company. The shares rose 2.7% to 38 cents yesterday.

Contact Energy (CEN): The biggest utility on the NZX 50 released operating figures for December. Electricity customers fell by 500 from December to 478,000 and have declined 4.2% from a year earlier. The number of gas customers fell to 64,500 from 65,500 and fell 8.5% from December 2008. LPG customers rose by 500 to 56,000. The shares rose 7 cents to $6.16 yesterday.

Fisher & Paykel Healthcare (FPH): The manufacturer of breathing masks and respirators garners almost 80% of its revenue in U.S. dollars and benefits when the New Zealand dollar falls. The kiwi dollar has fallen 2 ½ U.S. cents in the past three days amid expectations there's less prospects of an early hike in interest rates as inflation remains benign. The shares rose 1.5% to $3.35 yesterday.

Kiwi Income Property Trust (KIP): The owner of Auckland's Vero Centre fell 2.9% to $1.01 yesterday, leading a second day of declines for the property sector as investors speculated about the possible impact of proposed changes to tax on property assets. AMP NZ Office Trust fell2.6% to 74 cents, Property for Industry fell 2.5% to $1.15, Goodman Property Trust declined about 2% to $1 and ING Property Trust fell 1.3% to 76 cents. The NZX Property Group Index sank 2.2%.

Nuplex Industries (NPX): The specialty chemicals maker yesterday said it had record earnings in the first-half, exceeding its previous record of $60.6 million in the first half of the 2008. The company also plans to reinstate interim dividends. The company lifted its full-year earnings estimate to a range of $120 million to $135 million, it said after the close of trading yesterday. The shares fell 1 cent to $3.05 yesterday.

Silver Fern Farms (SFF): The meat company told the NZX it had no material information that could account for 10 million of its December 2010 bonds changing hands yesterday, more than twice the total volume traded in all of 2009. The company's shares trade on the Unlisted platform and were last at 55 cents on Jan. 18.

 

[ridersenja]

Stocks to watch include Axiata Group Bhd, KENCANA PETROLEUM BHD [], DRB-HICOM BHD [], Yeo Hiap Seng (Malaysia) Bhd, Ho Hup CONSTRUCTION [] Co. Bhd, Rubberex Corp (M) Bhd and SAPURACREST PETROLEUM BHD [].

CIMB Equities Research is maintaining its Outperform recommendation on Axiata with an unchanged sum-of-parts based target price of RM3.86, of which 4% comes from Idea.

“We still rate Axiata as our top pick among the regional telcos given the strong growth at Celcom and Excelcomindo. Both continue to gain market share in their respective countries and the strengthening rupiah also favours Axiata.

“The likely re-rating catalysts include positive earnings surprises, especially at Celcom and XL, and market share gains at its key units. Our EPS forecasts are 15-36% above consensus. The key risks are the upcoming 3G spectrum auction and price war in India,” it said.

As for Kencana, CIMB Research is maintaining an Outperform and raised the target price to RM2. New ventures including pipeline installation and drilling) and new contracts (Malaysia and India) further fuels the research house’s optimism on Kencana.

Bahrain’s Al Baraka is in preliminary discussions to buy a stake in Bank Muamalat and it could be up to 49%. DRB-Hicom Bhd owns 70% of Bank Muamalat while Khazanah Nasional owns the remaining 30%.

Yeo Hiap Seng said the revenue from contributed by "Red Bull" products for the financial period Oct 1, 2008 to Sept 30, 2009 was RM99.6 million, accounting for 18.2% of the group revenue.

The operating profit was RM870,000, or 14.7% of the group's operating profit during that financial period, it said in its comments on the financial impact on the cessation of the contract to distribute the products.

Ho Hup, which has earlier targeted to submit its revised regularisation scheme on Feb 4, has sought a three-month extension to May 4 to address its Practice Note 17 status.

It revised the capital reduction to 60 sen of the par value, instead of the 95 sen earlier while it wants to leverage on the company’s current core land bank of 60 acres within Bukit Jalil.

Rubberex’s net profit for FY ended Dec 31, 2009 nearly doubled to RM16.56 million from RM8.63 million a year ago. Revenue was RM325.44 million compared with RM274.51 million.

SapuraCrest Petroleum's JV has secured a US$75 million contract to transport and install four platform jackets in the Mumbai High North Field, offshore Mumbai. SapuraCrest’s share will be 60% of the contract based on its shareholding in the JV.

CBS Tech’s bonus issue of one-for-two shares and Hunza PROPERTIES [] rights issue with warrants will go ex on Jan 25.

 

[myonline]

good info...
thanks bro..

 

[ridersenja]

26/01/2010

At Bursa Malaysia, stocks to watch include EON CAPITAL BHD [] (EONCap), HONG LEONG BANK BHD [], VASTALUX ENERGY BHD [], MUDAJAYA GROUP BHD [] and DRB-HICOM BHD [].
Bank Negara’s monetary policy meeting starts Tuesday economists expect the central bank to maintain the overnight policy rate (OPR) at its historical low of 2%.

EON Capital states Hong Leong Bank's RM4.92 billion takeover proposal or at RM7.10 per share as "significantly" undervaluing the targeted banking group.

EONCap chairman Tan Sri Syed Anwar Jamalullail said it had "sought clarification" from Hong Leong Bank yesterday on a range of details in its acquisition proposal, with a particular focus on valuation.

Vastalux has had its Petroliam Nasional Bhd’s licence suspended by the national oil company. However, it is seek clarification from Petronas and is appealing for a reinstatement of the licence.

Mudajaya is looking into a JV with Saudi Arabia’s Modern Electro-Mechanical Projects Ltd (Mepco) and a Saudi citizen Mubarak Abdullah Mohammed Al Khafra to set up a specialist equipment procurement contracting company.

Mudajaya’s 75%-owned Mudajaya Corporation Bhd had inked a memorandum of understanding (MoU) with Mepco and Mubarak with the intention of setting up the joint venture company that would be known as Mudajaya Power and Water Ltd.

DRB-Hicom Bhd confirmed that it is in preliminary talks with Bahrain-based Al-Baraka Banking Group with a view to divesting its stake in Bank Muamalat.

AE MULTI HOLDINGS BHD [] (AEM) will issue 8.45 million shares to Chia Chor Meng at 50.5 sen per share under its proposed private placement, which is 9.09% of the company’s enlarged paid-up share capital of RM46.47 million comprising 92.94 million shares after the exercise. The stock closed 31 sen higher at RM1.41 yesterday, with 24.4 million shares done.


DAYANG ENTERPRISE HOLDINGS BHD [] has secured an RM8.5 million job from Petronas Carigali Sdn Bhd for the provision of hook-up and commissioning of Petronas Carigali’s facilities at the Tangga Barat cluster development project phase 1.

Ariantec Global Bhd executive director Chen Kong Kheng disposed of 36.25 million shares representing a 6.37% stake in the company on Jan 22.
The shares were disposed off in the open market. The share price closed at seven sen that day.
After the disposal, Chen’s direct stake was reduced to 100 million shares or 17.58%.

 

[ridersenja]

Stocks to watch include HONG LEONG BANK BHD [], EON CAPITAL BHD [], MULPHA INTERNATIONAL BHD [], REDtone, Sime Darby and SUNRISE BHD []. Also in focus will be glove makers, whose shares have come under selling pressure after the recent run-up despite the optimistic outlook for the sector, REDTONE INTERNATIONAL BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Hong Leong Bank is maintaining its offer price of RM7.10 per share for EONCap despite the target company's board stating that the price is too low. The offer for the takeover ends tomorrow, with Hong Leong Bank saying it would walk away if EONCap rejects its offer price.

The Edge FinancialDaily reports that the board of EONCap would meet again today, to decide whether to accept the offer.

Meanwhile, news report say Mulpha is showing interest in the group and has written to Bank Negara to start talks to acquire a stake in EONCap.

The Minority Shareholder Watchdog Group (MSWG) has come out strongly to state that HL Bank’s offer of RM7.10 per share is not a fair price and has called on EONCap shareholders to reject the offer.

Sime Darby Property Bhd and Sunrise Bhd have teamed up to undertake a RM1 billion project.

They will jointly develop three lots of freehold commercial land measuring 20.95 acres in the 180-acre Bukit Jelutong with a gross development value (GDV) of around RM1 billion.

REDtone launched its Internet Protocol TV (IPTV) channel branded as DETV, with the initial content from Chinese state broadcaster CCTV and expects to rake in RM6 million in revenue annually, less operational costs with a 10,000 customer base.

REDtone believes the move is complementary to existing business of providing broadband and telco services. REDtone posted stronger 2Q09 results of RM1.58 million in net profit from RM1.19 million in the preceding quarter.

MPI posted an impressive set results for the second quarter ended Dec 31, 2009, with net profit of RM25.71 million compared with net loss of RM14.73 million a year ago as the sector's outlook improved.

Revenue rose 18% to RM346.57 million from RM293.51 million a year ago. Earnings per share were 13.19 sen compared with loss per share of 7.56 sen.

 

[ridersenja]

28/01/2010

KUALA LUMPUR: The market could see some respite on Thursday, Jan 28 from the three days of heavy selling this week which erased about RM25 billion from the market capitalization.

The selling of banks and PLANTATION []s, followed by glove makers and other stocks this week pushed the market capitalization to near the RM1 trillion mark, way off the high of RM1.036 trillion on Jan 20.

There could be some mild buying interest as sentiment firmed up following the stronger overnight close on Wall Street.

However, at Bursa Malaysia, concerns of higher interest rates could somewhat restrain the buying.

Borrowing cost may rise as early as March following Bank Negara monetary policy committee's (MPC) statement on Tuesday that rates could not be kept too low for too long to prevent a build-up of imbalances.

U.S. stocks rose on Wednesday, Jan 27 after the U.S. Federal Reserve said it will keep interest rates near zero and ahead of President Barack Obama's State of the Union address later in the day.

The Dow Jones industrial average gained 41.87 points, or 0.41 percent, to end at 10,236.16. The Standard & Poor's 500 Index rose 5.33 points, or 0.49 percent, to 1,097.50. The Nasdaq Composite Index climbed 17.68 points, or 0.80 percent, to 2,221.41.

Stocks to watch include EON CAPITAL BHD [], HONG LEONG BANK BHD [], DRB-HICOM BHD [], GADANG HOLDINGS BHD [] and Hume Industries (Malaysia) Bhd.
Hong Leong Bank gave EON Cap until Feb 2 to further study the RM4.92 billion takeover offer to acquire its entire assets and liabilities.

However, the Minority Shareholders Watchdog has advised EON Cap minority shareholders to walk away from the deal which is priced at RM7.10 per share.

Property developer SUNWAY CITY BHD [] has hired RHB Investment Bank and Credit Suisse as the main coordinators for the planned listing of its real estate investment trust (REIT) in Malaysia.

DRB-Hicom’s unit Hicom Holdings Bhd will take its 79% subsidiary EDARAN OTOMOBIL NASIONAL BHD [] (EON) private through a capital reduction and repayment exercise which is expected to be completed in the third quarter this year.

The group said 80.83 million shares would be cancelled comprised 52.15 million shares held by the minority shareholders and 28.68 million shares held by Hicom.

As for Petra Perdana, the board will hold a press conference this afternoon on the latest developments following the boardroom and shareholder tussle.

Gadang has proposed to acquire a leasehold parcel of residential land off the Sungai Besi Highway in Sungai Besi here for RM33 million or RM62 per square foot.

Its subsidiary Natural Domain Sdn Bhd plans to buy the land measuring about 49,377.47 square metres from GSS PROPERTIES [] Sdn Bhd.

Hume posted a net profit of RM34.03 million in its second quarter ended Dec 31, 2009 versus a loss of RM100.77 million a year earlier, mainly due to the turnaround of its 42%-owned SOUTHERN STEEL BHD [].

In Alliance Financial Group, the board of Alliance Bank Malaysia Bhd is in the midst of evaluating the responses submitted by its group CEO Datuk Bridget Lai but no time frame has been set to complete the assessments, said bank director Tee Kim Chan.

 

[ridersenja]

31/01/2010

As for Bursa Malaysia, it is only the market to close for trading on Monday, Feb 1 for Federal Territory Day while all other key regional markets are open.

Stocks to watch on Tuesday include LCL CORPORATION BHD [], AE MULTI HOLDINGS BHD [], MISC BHD [] and The Store Corp Bhd.

LCL said it had identified US-based KHS&S as a potential investor to regularise its financial condition.

KHS&S, which builds theme parks in the US, has built Disney Land, Disney World, Universal Studio, Red Rock Casino, Sea World and the Las Vegas MGM Casino.

AE Multi is in talks to acquire 18% of British Virgin Islands-registered BL Holdings Ltd.BL Holdings is the sole owner of Ben's Entertainment City (HK) Ltd which owns a cruise business.

The Store Corp reported a variance between the audited and unaudited financial statements for FY ended Sept 30, 2009 following the provision of allowance for doubtful debt of RM10.827 million.

KUMPULAN JETSON BHD [] is teaming up with China State CONSTRUCTION [] Engineering (Hong Kong) Ltd (CSCHK) to look into the possibility of tendering for a construction project along Jalan Stonor, Kuala Lumpur.

The project involves two blocks of office building, 50 stories and 38 stories each, and a 10 storey podium block for Naza TTDI Sdn Bhd. Kumpulan Jetson and Nzaza TTDI have some common shareholders via the Naza Group.

 

[ridersenja]

The Malaysian plastic flexible packaging (PFP) sector includes major players Daibochi Plastic and Packaging Industry Bhd and TOMYPAK HOLDINGS BHD [], MALAYSIA PACKAGING INDUSTRY [] Bhd and ADVANCED PACKAGING TECHNOLOGY [] [] (M) Bhd.
These four mid-cap listed companies together hold about 70% market share of the Malaysian PFP sector.

In a report last Thursday, CIMB Research compares the sector to the rubber glove making industry.

"We see many similarities between PFP and rubber glove producers. Both are in defensive resilient businesses and are able to pass on raw material cost rises to their customers.

"The players in both industries are also very competitive in the global and regional markets. Barriers to entry are high due to stringent industry regulations and requirements," the research house said.

Out of the four, Melaka-based Daibochi and Johor Bahru-based Tomypak supply 90% of multi-national corporation (MNCs) confectioners and beverage makers in the country and are deemed the best bet for overseas exposure.

CIMB Research estimated that MNC business contributes more than half or 65% of revenues for both companies. Local confectioners are also expanding their export markets. For example, about 30% of biscuit maker Cocoaland's revenue is currently derived from the Asian region outside Malaysia.

CIMB Research has outperform calls on both counters with a target price of RM4.50 for Daibochi based on 12 times calendar year 2011 (CY11) price-earnings (PER) ratio and RM4.55 for Tomypak on 8.4 times CY11 PE.

"Trading liquidity is poor for both stocks and market cap is small at US$28 million to US$64 million (RM96 million to RM156 million). However, this is offset by their strong potential share price upside and attractive dividend yields of 7% to 8%," said the research house.

 

[ridersenja]

At Bursa Malaysia, stocks to watch include HONG LEONG BANK BHD [], EON CAPITAL BHD [] (EONCap), KUB MALAYSIA BHD [], HUNZA PROPERTIES [] BHD [] and LONDON BISCUITS BHD [].

EONCap's board had rejected Hong Leong Bank's RM4.29 billion cash offer or RM7.10 per share offer as it described the offer as significantly undervaluing EON Cap. MEanwhile, Hong Leong Bank said the offer had lapsed yesterday.

EONCap, which owns EON Bank Bhd, said after fully consulting its advisers and considering all available information, its board of directors decided the offer was not in the interest of the company and its shareholders.

The rejection appears to derailed HLBB's plan to become the country's fourth-largest banking group with total assets of about RM111 billion, up from its current sixth position with close to RM77 billion worth of assets.

According to analysts, investors will want to see what is Hong Leong Bank's next move. Industry observers believe EONCAp's move to reject HLBB’s offer is the start to a long drawn battle for the targeted banking group.

There are expectations that analysts will likely revise their call downwards to the original fair value of the stock before the offer was made.

An analyst told The Edge FinancialDaily EON Cap’s fundamental value is around the RM6 to RM6.50 region.

He added there could be changes in the valuation if there is another suitor but this seems unlikely now. He said Mulpha's offer did not bring about any synergies.

KUB’s unit has secured a RM29.78 million contract from the government to upgrade the digital TV Playout Centre for Radio Television Malaysia (RTM).

Hunza's 2Q earnings surged 92% to RM13 million from RM6.76 million a year ago on the back of a revenue of RM59.40 million versus RM24.61 million previously.

London Biscuits has proposed to buy a 32% stake in poultry-based TPC PLUS BHD [] for RM7.68 million, as it seeks to ensure regular supply for its expanding cake confectionery business.


ETI Tech Corp Bhd has raised the ante in the green revolution with its lithium-based battery, replacing the conventional lead acid-based battery, for use in the solar home system.

 

[ridersenja]

4/2/2010

Stocks to watch include Petra Perdana, Ho Hup, DIGI.COM BHD [], EON CAPITAL BHD [] (EONCap) and Iris Corp Bhd.At the EGMs of Petra Perdana and Ho Hup, shareholders will decide who takes control in running both companies, albeit rumours that the Ho Hup EGM might be called off due to some legal maneuvering.

Petra’s EGM is for shareholders to decide in removing four directors despite the 11 requisitioners having received suspension letters.The EGM was called following the company's move to sell 25% stake in subsidiary PETRA ENERGY BHD [].

As for Ho Hup, the TC Low faction through Low Chee & Sons Sdn Bhd and Choo Soo Har, intend to move and propose at the EGM, the removal of seven directors from Ho Hup and appoint six persons presumably friendly to Low's cause to go against the existing board’s proposed restructuring scheme for the company still under PN17 status.

One of the main grouses by TC Low’s faction is against the current board led by deputy executive chairman Datuk Vincent Lye over the company’s original regularization plan submitted last October.

As for DiGi, its 4Q net profit fell 12.7% to RM246.48 million from RM282.24 million a year ago, due to higher traffic and network operating costs, and more allowance for doubtful debts.

Interest in the stock would be underpinned by its second interim dividend of 54 sen single-tier exempt dividend to be paid on March 26.

EONCap was downgraded by analysts after it rejected HONG LEONG BANK BHD []’s RM4.92 billion cash offer to take over its assets and liabilities.

Iris Corp Bhd's joint venture has secured a RM259.7 million contract from Bangladesh's government to introduce machine readable passport and machine readable visa.

The JV was appointed to supply the goods and related services for the introduction of these passports and visas in Dhaka.