Stocks to Watch Boustead, UAC, Mah Sing, Bina Darulaman, Sealink, HeiTech Padu, MTD ACPI Engineering, PetDag

Business & Markets 2012
Written by Surin Murugiah of   
Tuesday, 22 May 2012 00:00

KUALA LUMPUR (May 22): The FBM KLCI could trend higher on Tuesday in line with the improving sentiment at regional and global markets after global leaders backed at the Group of Eight (G8) summit at Camp David in the US backed keeping Greece in the eurozone last Saturday, and vowed to take all steps necessary to combat financial turmoil.
US stock index futures rose on Monday after Wall Street posted its worst weekly loss for the year and on assurances that world powers want debt-laden Greece to remain in the euro, according to Reuters.
European shares rebounded from five-month lows on Monday as investors bought into some stocks that had been badly hit in the previous week's sell-off, although charts signaled the bounce could be short-lived and its downtrend could resume again, it said.
On Bursa Malaysia, among the stocks that could be in focus are BOUSTEAD HOLDINGS BHD [], UAC BHD [], MAH SING GROUP BHD [], BINA DARULAMAN BHD [], SEALINK INTERNATIONAL BHD [], HEITECH PADU BHD [], MTC ACPI Engineering Bhd and PETRONAS DAGANGAN BHD [] (PetDag).
Boustead is privatising UAC for a deemed offer price of RM4.30 per share via a proposed selective capital reduction and repayment exercise (Proposed SCR) and a proposed dividend by UAC. Boustead and UAC resume trade on Tuesday after being suspended since last Friday pending the announcement of their corporate exercise.
In a statement on Monday, Boustead — which now has a 65% stake in UAC — said the exercise will involve a selective capital reduction and a corresponding capital repayment to the shareholders of UAC based on an entitlement date to be determined later, save for one million UAC shares which will be held by BHB upon completion of the proposals.
As an integral part of the proposals, it was also proposed for UAC to pay a dividend to its shareholders. Boustead said that under the Proposed SCR, UAC's shareholders will receive a total cash payment of RM85.4 million, or RM3.30 per UAC share.
Mah Sing's unit Tristar Acres Sdn Bhd has acquired eight parcels of freehold land in Bandar Baru Bangi - measuring 412 acres - for RM330.77 million for a township with a gross development value (GDV) worth RM2.15 billion. In a filing to Bursa Malaysia Securities Bhd on Monday, Mah Sing said its unit had entered into a sale and purchase agreement with Boon Siew Development Sdn Bhd to buy 408.25 acres of freehold the land for RM18.60 per square foot.
The company had also acquired four acres leasehold land from an individual party, adding that the lands were strategically located in Bandar Baru Bangi, with prime frontage of 2km along both sides of the North South Highway.
Bina Darulaman's net profit for the first quarter ended March 31, 2012 rose two-fold to RM6.88 million from RM3.13 million a year earlier, on the back of a 121% jump in revenue to RM73.39 million from RM34.57 million a year earlier. Earnings per share was 9.44 sen compared to 4.30 sen in 2011, while net assets per share was RM3.27.
Sealink's net profit for the first quarter ended March 31, 2012 fell 48.83% to RM4.78 million from RM9.35 million a year earlier, on the back of a 56.7% drop in revenue to RM22.15 million from RM51.2 million in 2011. It said on Monday that the drop in revenue to a substantial drop in shipbuilding revenue.
HeiTech Padu has secured a contract worth RM34.49 million from the Inland Revenue Board of Malaysia (LHDN) to provide replacement and maintenance services for computer software for the mainframe computer system at the main and secondary data centre of LHDN.
MTC ACPI's unit MTD CONSTRUCTION [] Sdn Bhd has received a letter of award worth RM499.98 million from Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) to build the viaduct guideway and other associated works from Bandar Tun Hussein Onn to Taman Mesra MRT Line, Package V7 project. In a filing to Bursa Malaysia Securities Bhd last Friday, MTD said its unit had received the letter of acceptance for the project from MRT Corp last Friday.
PetDag posted a net profit of RM246.21 million for the three months ended March 31, 2012 on the back of revenue RM6.85 billion. Earnings per share was 24.80 sen, while net assets per share was RM4.95, and the company declared a gross interim dividend of 17.5 sen for the three months ended March 31, 2012, to be paid on June 26.