Stocks to watch: Ingress, Zhulian, Ngiu Kee, Wijaya

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Written by Joseph Chin of theedgemalaysia.com
Thursday, 14 July 2011 00:22
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KUALA LUMPUR: Stocks which could see trading interest on Thursday, July 14 following fresh corporate news include INGRESS CORPORATION BHD [], Zhulian Corp Bhd and Ngiu Kee Corporation Bhd.

Ingress’s joint venture has been awarded a RM85 million contract from TENAGA NASIONAL BHD [] for a transmission line in Bandar Nusajaya, Johor. Its subsidiaries, Ramusa Engineering Sdn Bhd and Multi Discovery Sdn Bhd received a letter of acceptance for the project which is expected to commence in the third quarter of the current financial year ending Jan 31, 2012.

Zhulian’s net profit for the second quarter ended May 31, 2011 rose 16.64% to RM21.01 million from RM18.01 million a year earlier, due mainly to increase in demands for both local and overseas markets.

Revenue for the period rose to RM92.69 million from RM77.92 million in 2010. Earnings per share was 4.57 sen, while net assets per share was 79.7 sen. Zhulian declared a second interim single tier dividend of three sen per share of 50 sen each in respect of the financial year ending Nov 30, 2011.

Ngiu Kee faces suspension on July 21 and delisting on July 25 after it failed to submit its regularisation plan to the regulators for approval within the timeframe. Ngiu Kee failed to submit the plan to Securities Commission or Bursa Malaysia Securities Bhd.

Its share price closed 2.5 sen lower at five sen on Wednesday with 53,200 shares done.

Loss-making timber-property based WIJAYA BARU GLOBAL BHD [] share price jumped 12.5 sen to 56.5 sen, the highest since March 2008, in the absence of any fresh positive news. The warrants rose two sen to 9.5 sen.

However, investors should note the warrants, issued in September 2007, expire in September 2012.

The conversion ratio is one warrant for each share. The exercise price is RM1.25 and effectively makes the warrants out of money.

The warrants were issued for free to the subscribers of renounceable rights issue of RM110.36 million nominal value of five-year 7% irredeemable convertible unsecured loan stocks (ICULS) at 100% of its nominal value on the basis of one free detachable warrants for every RM1 rights ICULS subscribed for.

The issue price for the ICULS was RM1 and the exercise price was RM1.25. The loan stocks expire in September 2012. The loan stocks rose nine sen to 40.5 sen.

According to its latest financial statements for the financial year ended Dec 31, 2011, it had total accumulated losses of RM187.80 million at the company level and RM103.14 million at the group level. At group level, it posted net losses of RM69.901 million and at company level, RM96.24 million.