Stocks to Watch Gabungan AQRS, Maybank, IHH Healthcare, rubber glove makers, RedTone
Business & Markets 2012
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 31 July 2012 00:00
KUALA LUMPUR (July 31): The FBM KLCI could pause on Tuesday amidst signs that local investors could take a breather, given the global rally that has seen the local benchmark index climb back above the 1,630-level.
The FBM KLCI turned positive in late trade on Monday after having dipped in earlier on some mild profit taking. With limited fresh catalysts, investors have been relying on external newsflow for direction.
But all is not lost for the FBM KLCI, as the mega listing of IHH Heathcare Bhd last week did stir up some interest, as might the listing of integrated engineering and CONSTRUCTION [] services provider Gabungan AQRS Bhd on Tuesday.
US stock index futures dipped on Monday, indicating the S&P 500 may give back some gains from the prior two sessions that pushed the benchmark index last Friday to its highest close since May 3, according to Reuters.
At the local market, among the stocks that could be in focus on Tuesday are Gabungan AQRS, MALAYAN BANKING BHD [] (Maybank), IHH Healthcare, rubber glove makers, and REDTONE INTERNATIONAL BHD [].
Gabungan AQRS made a public issue of 62 million new ordinary shares of 25 sen par value, and an offer for sale of 30 million ordinary shares of 25 sen par value at a price of RM1.18 per share. It said on Monday that it had received a Letter of Acceptance for a RM141 million turnkey contract from Jabatan Kerja Raya Malaysia (JKR) to provide for road upgrading works in Negeri Sembilan.
For financial year ended Dec 31, 2011, the group recorded a proforma net profit of RM48.2 million, on revenue of RM372.4 million. The group's previously-completed works include the RM110.0 million Seremban-Senawang federal road, the RM150.0 million Institut Kemahiran Belia in Kuala Langat, and 43 school blocks in Kuala Lumpur and Selangor totalling RM150.0 million.
Gabungan AQRS' on-going construction works include the RM104.6 million Puchong Perdana Interchange and the RM277.2 million Lebuhraya Damansara-Puchong extension. To date, the group has delivered construction projects worth a total of RM896.6 million.
Maybank has signed a five-year partnership with Legoland Malaysia to be its official retail bank. The partnership with Asia's first interactive theme park is for the provision of an advanced electronic payment structure and will exclude all other banks from operating on the Legoland premises, said Maybank president and CEO Datuk Sri Abdul Wahid Omar after the signing ceremony on Monday. The theme park — set to open in Nusajaya, Johor on Sept 15 — expects over one million visitors in its first year of operations.
With IHH Healthcare set to be included on the FTSE FBM KLCI with effect from Aug 1, the stock — which has had a favourable run since its listing on Wednesday — has been actively traded. It closed unchanged at RM3.15 on Monday, but is up 12.5% from its offer price of RM2.80.
Meanwhile, some rubber glove makers could also pique investor interest ahead of their second quarter results. BIMB Securities Research in a note Monday said it was advocating investors to accumulate on rubber gloves stocks ahead of their second quarter (2Q) results which will surprise on the upside.
RedTone posted a net profit of RM2.47 million for the fourth quarter ended May 31, 2012 compared to a net loss of RM8.01 million a year earlier, due mainly to gain from deconsolidation arising from the disposal of a subsidiary. The company posted revenue of RM22.74 million compared to RM23.04 million in 2011. Earnings per share was 0.52 sen compared to a loss per share of 1.83 sen previously.
For the financial year ended May 31, RedTone posted a net profit of RM2.15 million compared to a net loss of RM11.72 million in 2011, on the back of revenue of RM106.98 million. In a statement on Monday, RedTone said the increase in net profit was mainly driven by significant growth in its data and broadband services.