Stocks to watch: AMMB, Dialog, RCE, Tebrau Teguh

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Written by Joseph Chin of
Tuesday, 14 February 2012 22:25

KUALA LUMPUR (Feb 15): With the broader market showing signs of weakness, whether the market can perk up again hinges on fresh corporate developments and earnings which are going into full swing next week.

Also over the past two trading days, late fund support has helped the FBM KLCI close higher but volume has been declining in the broader market, with recent leaders among penny stocks and lower liners fading.

On the economic front, Bank Negara Malaysia is scheduled to release its fourth quarter GDP data after market. Most importantly, investors would want to hear is Bank Negara Malaysia’s assessment of the economy and its outlook.

As for stocks, among those which could see trading interest are AMMB HOLDINGS BHD [], DIALOG GROUP BHD [], RCE CAPITAL BHD [] and TEBRAU TEGUH BHD []. Naim Indah could also see trading interest with downside bias as more traders take profit.

AMMB posted net profit of RM357.18m for the third quarter ended Dec 31, 2011, up 9.8% from the RM325.31 million a year ago underpinned by profit growth across most divisions. Its revenue increased 7.2% to RM1.955 billion from RM1.824 billion. Earnings per share were 11.95 sen compared with 10.83 sen.

For the nine-months ended Dec 31, 2011, its earnings increased by 13.8% to RM1.168 billion from RM1.026 billion in the previous corresponding period. Its revenue registered a 14% increase to RM6.047 billion from RM5.302 billion.

Dialog’s earnings rose 15.1% to 41.45 million in the second quarter ended Dec 31, 2011 from RM35.99 million a year ago, boosted by higher revenue from the consolidation of its new businesses and operations.

Its revenue increased at a stronger pace of 33.5% to RM358.62 million from RM268.53 million. Its earnings per share were 2.10 sen compared with 1.84 sen.

Meanwhile, Dialog’s 396.87 million rights shares issued under its rights issue with warrants will be listed and quoted on Wednesday.

Bernama reports RCE Capital Bhd's pre-tax profit fell 10.4% to RM105.237 million for the nine-month period ended Dec 31, 2011 from RM117.44 million a year ago. The decrease was due to the loan financing segment, which posted a lower pre-tax profit by RM8.6 million arising from lower interest income generated from its loans and receivables.

For the third quarter, RCE Capital posted a lower pre-tax profit of RM30.645 million compared with RM42.401 million a year ago. Its revenue declined to RM61.11 million from RM77.179 million.

Meanwhile, the Malay Chamber of Commerce Malaysia (MCCM) Johor has announced its plan to acquire a 33.15% stake in Tebrau Teguh from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ).

Its president Syed Ali Alattas was quoted saying by Bernama that MCCM Johor, supported by MCCM, would be offering KPRJ 80 sen per share or about RM177 million.

"We will send the official letter by the end of the month," Syed Ali, who is also MCCM president, said on Tuesday. He added MCCM Johor was also willing to buy KPRJ's 41.15% stake in Tebrau Teguh.

KPRJ plans to sell a 33.15% stake in Tebrau Teguh to Iskandar Waterfront Holdings Sdn Bhd (IWH) for 76 sen a share, or RM168.7 million in total. The move will result in IWH having to make a mandatory general offer for the rest of Tebrau Teguh’s shares at the same price.

KPRJ, which is the Johor state’s investment arm, currently owns a direct 41.15% stake in Tebrau Teguh. IWH is owned by KPRJ and Credence Resources Sdn Bhd.