Stocks to watch:* Daya Materials, Hua Yang, Tradewinds, Dialog

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Written by Joseph Chin of theedgemalaysia.com

Thursday, 14 July 2011 20:15

KUALA LUMPUR: Fresh positive domestic corporate announcements could provide the lift for the local stock market on Friday, July 15 after the string of worrying international news.

Stocks which could see trading interest include DAYA MATERIALS BHD [], HUA YANG BHD [], Tradewinds PLANTATION [] Bhd, DIALOG GROUP BHD [], AEON Co. Bhd and COASTAL CONTRACTS BHD [].

Daya Materials Bhd has secured a RM120 million contract from B Braun Medical Industries Sdn Bhd to build a new six-storey building in Bayan Lepas, Penang.

Daya’s unit Daya CMT Sdn Bhd was awarded the contract on June 22 and it involved building a one-storey utility plant rooms, a building for multi-level parking and a two storey multi-purpose building.

Meanwhile, Hua Yang’s net profit for the first quarter ended June 30, 2011 surged 133% to RM11.48 million from RM4.91 million a year earlier, due mainly to higher sales achieved.

Revenue for the quarter rose 66% to RM61.75 million from RM37.22 million. Earnings per share were 10.63 sen while net assets per share were RM2.15.

Hua Yang also proposed a bonus issue of 36 million shares on a one-for-three basis. The company expects the corporate exercise to be completed in the second half of 2011.

Tradewinds Plantation, which had proposed to acquire Mardec Bhd, plans to build an integrated rubber-city in Kota Putra in Kedah, possibly a year from now.

Bernama reports its CEO Chan Seng Fatt as saying the integrated rubber city, which is set to provide a free trade rubber area would attract foreign investors to the country.

"We're now in the stage of drawing the masterplan. It will probably take a year to get approval from the authorities," he said after the EGM.

Dialog Group Bhd’s unit has proposed to acquire a 51% stake in India’s Anewa Engineering Private Ltd for RM7.88 million which would further provides access to new customers in various parts of the world namely in the Middle East and India.

It said on Thursday, July 14 Anewa is an outsourcing company that provides engineering design to customers, mainly multinational companies in India, Middle East and Southeast Asia in the oil, gas and petrochemical industry.

Atlan Bhd posted net profit of RM92.35 million in the first quarter ended May 31, 2011 from RM24.21 million a year ago, boosted by sale of several pieces of land.

Its revenue was marginally higher at RM177.29 million from RM175.96 million a year ago while earnings per share were 36.60 sen compared with 10.05 sen.

The earnings were boosted the sale of six pieces of land measuring 43.95 acres in Penang by its unit Blossom Time Sdn Bhd for RM104.42 million and a piece of land measuring 17.08 acres in Penang also for RM40.58 million.

AEON Co. Bhd will operate its department store and supermarket at the 1 Utama Shopping Centre in Petaling Jaya after it withdrew its suit against Bandar Utama City Sdn Bhd (BUC).

AEON said the legal proceedings including arbitration over the difference or dispute between both parties regarding BUC’s refusal to renew the lease at the shopping centre was withdrawn on Tuesday.

“Both parties have resolved the same amicably by entering into a tenancy agreement on June 23, 2011 to enable AEON to operate its department store cum supermarket at 1 Utama Shopping centre,” it said.