Written by Joseph Chin
Thursday, 10 June 2010 23:33
KUALA LUMPUR: CONSTRUCTION [] stocks will be in focus on Friday, June 11 after the Prime Minister announced the RM230 billion development allocation for the 10th Malaysia Plan which would also include infrastructure projects.
The government's commitment via the public-private partnership and the government-linked companies' teaming up with private companies would provide the impetus for more projects with high impact.
Stocks to watch on Friday include Genting Malaysia Bhd, GOH BAN HUAT BHD [] (GBH), KESM INDUSTRIES BHD [], PETRA PERDANA BHD [], LONDON BISCUITS BHD [] and TPC PLUS BHD [].
Genting Malaysia confirmed its unit Genting New York LLC (Genting NY) is bidding for a "racino" project in New York. Genting NY submitted a US$1 million (RM3.3 million) entry fee to the New York Lottery on June 1, 2010.
"This payment allows Genting NY to participate in the bidding process to develop and operate a video lottery facility at Aqueduct Racetrack in the city of New York," the company said.
Goh Ban Huat Bhd aims to venture into property development in the next three to five years as it mulls over various types of developments for its 14.86 acre-land parcel in Segambut.
The group expects property development to overtake its current core businesses in its own brand of ceramics and sanitary ware, clay pipe-manufacturing and warehouse-leasing in terms of size and value.
On the cards was a mixed-development project comprising residential and commercial units, he said, adding that the Segambut land had a book value of RM119.88 million.
KESM Industries third quarter (3Q) net profit jumped more than 10-fold from a year earlier as the semiconductor burn-in services provider secured more business due to recovery in the global electrical and electronic (E&E) industry.
It posted a net profit of RM2.87 million, or 6.7 sen a share, in the quarter ended April 30, 2010 compared with RM248,000, or 0.6 sen a share, a year earlier. Revenue rose 55.8 % to RM58.28 million from RM37.41 million.
Meanwhile, London Biscuits's conditional mandatory takeover offer in TPC Plus lapsed after it failed to secure over 50% of the latter's shares upon the close of the offer period.
London Biscuits had only secured an additional 13.88% of valid acceptances to its 33.11% stake it had already held in TPC Plus, totalling only 46.99% after the second closing date on Thursday.
London Biscuits had conditionally offered to acquire the remaining shares of 50 sen each in TPC Plus for 30 sen per share, it said.
Petra Perdana has obtained Bursa Malaysia Securities' approval for its proposed private placement of up to 29.76 million shares, representing 10% of its paid-up capital, subject to conditions that include renewing a shareholder mandate to issue shares.
However, the implementation of the proposed placement can only be undertaken after approval by shareholders at its June 28 AGM.