Stocks to watch: Genting, Genting Singapore, BToto, Dayang

Tags: BToto | Dayang | Genting | Genting Singapore

Written by Joseph Chin
Thursday, 10 September 2009 07:43

KUALA LUMPUR: Asian markets which gave up some recent gains, should be able to stage a mild rebound on Sept 10, Thursday after the US Standard & Poor's 500 index rose to its highest level this year.

The Dow Jones industrial average advanced 0.53% at 9,547.22. The Standard & Poor's 500 Index gained 0.78% to 1,033.37 while the Nasdaq Composite Index rose 1.11% to 2,060.39. According to Reuters, Wednesday's close for the S&P index was the highest since Oct 6 when it ended at 1,056.89.

However, there would be some concern over GENTING BHD [] and its Singapore subsidiary Genting Singapore after the latter announced plans to raise US$1.2 billion in a rights issue for possible acquisitions.

Genting Bhd fell the most in more than a month, down 30 sen to RM6.87, weighing on the 30-stock FBM KLCI while Genting Singapore resumes trading on the Singapore bourse after a one-day suspension.

Genting Singapore is undertaking the rights issue for possible acquisitions. At 80 cents a rights share, this represents a 32.8% discount to its last traded price of S$1.19.

Genting Bhd is trading at a lofty 99.45 times price-to-earnings at RM6.87 while Genting Malaysia is at 29.86 times and Berjaya Sports Toto, which announced its 1Q results ended July 31, is trading at 13.31 times.

Berjaya Sports Toto posted net profit of RM100.45 million in its first quarter ended July 31, 2009, an increase of 8.7% from RM92.39 million a year ago due to lower prize payout. Revenue was flat at RM826.16 million compared with RM825.9 million while earnings per share were 7.97 sen compared with 7.36 sen.

Dayang plans to bid four to eight contracts worth approximately RM2 billion next year, all of which are local projects. The acquisition of a 40% stake in Syarikat Borcos Shipping would provide it the vessels to expand into the growing support services for the oil and gas sector.

Formis Resources could see some interest after announcing that it had started implementing its e-filing system for courts after having been awarded the job worth about RM70 million last month.

It has invested over RM20 million in the development of this programme and have installed in over 26 courts so far as part of its proof of concept, beginning in February this year, according to its executive vice-chairman and chief executive officer, Datuk Mah Siew Kwok.

German auto giant and Europe’s largest carmaker Volkswagen Group is looking at Malaysia as its sourcing hub for auto components in the region to fulfill its worldwide production.