Stocks to watch:* Faber Group, Bumi Armada, TAS, Tebrau Teguh

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KUALA LUMPUR (Jan 13): Stocks which could see trading interest on Friday include FABER GROUP BHD [], Bumi Armada Bhd, TAS Offshore Bhd and TEBRAU TEGUH BHD [].
The latest suit which Faber’s subsidiary Faber Ltd Liability Company is facing is from a sub-contractor, Sweet Home Technical Works Ltd Liability Company, for services provided for housing projects in Abu Dhabi.
Faber said the statement of claim dated Jan 10 was for AED13.12 million (RM11.21 million), which Faber LLC is disputing.
Meanwhile, UOB Kay Hian Malaysia research had initiated coverage on Bumi Armada with a sell and sum-of-parts target price of RM3.16 due to weaker outlook.
“Despite the promising macro outlook for floating production storage and offloading (FPSO) platforms within the region, Bumi Armada remains one of the most expensive stocks within the oil & gas services sector.
“Minimal exposure in Malaysia, limited lifespan on FPSOs, concentrated revenue stream on a singular asset, exposure to risky markets/counter parties and coupled with a short operating track record are inherent risks the market should not ignore,” said UOB Kay Hian Research.
On an upbeat note, TAS Offshore’s earnings continued to improve, with net profit of RM2.227 million in the second quarter ended Nov 30, 2011 compared with net loss of RM184,000 a year ago, boosted by sale of its tugboats under CONSTRUCTION []. Its revenue was 27.7% higher at RM31.57 million compared with RM24.72 million a year ago.
TAS’ second quarter net profit of RM2.227 million was higher by 75.3% compared with RM1.27 million in the first quarter while its revenue rose 79% or RM13.91 million from RM17.67 million.
Interestingly, Tebrau Teguh could stand to report a gain of RM16.67 million from the sale of two parcels of commercial land in Plentong, Johor.
It is selling the parcels of land for a total of RM28.27 million, which RM16.67 million or 143.7% above the net book value of RM11.60 million as at Dec 31, 2010. The company said the RM28.27 million was based on a valuation report by Messrs. Raine Horne International Zaki + Partners dated June 17, 2011.
“The total net book value as per audited financial statements for the year ended Dec 31, 2010 is RM11.60 million,” it said.
BINA PURI HOLDINGS BHD [] is negotiating the financial and legal aspects of a privatisation concession agreement with the National Highway Authority in Islamabad, Pakistan. Bina Puri said had received the letter of intent dated Nov 11, 2011 from the highway authority.
SUPERMAX CORPORATION BHD []’s 340.07 million new bonus shares will go ex on Jan 26. The company said the shares were issued on a one-for-one basis. The entitlement date is Jan 30.
CIMB Group says its discussions with San Miguel Corp to possibly acquire a stake in Bank of Commerce in the Philippines, was still on-going. It expected to conclude the negotiations by the first quarter of 2012.