Business & Markets 2012
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 04 October 2012 00:00
KUALA LUMPUR (Oct 3): Based on news flows and company announcements to Bursa Malaysia on Wednesday, the stocks that may attract trading interest on Thursday include Scientex Bhd, GW Plastics Holdings Bhd, UEM Group Bhd, TIME ENGINEERING BHD [], NAIM INDAH CORPORATION BHD [] (Nicorp) and Ahmad Zaki Resources Bhd.
The badly-beaten PLANTATION [] stocks on Wednesday due to a plunge in palm oil prices on Tuesday and negative sentiment may either see more bashing on these stocks or bargain hunting.
Scientex announced it is acquiring two subsidiaries of GW Plastics for RM283.2 million in cash. It said the purchase of Great Wall Plastic Industries Bhd and GW Packaging Sdn Bhd will be funded by internal funds and bank borrowings.
Scientex managing director Lim Peng Jin said the enlarged entity will see revenue rising to about RM1 billion, turning it into one of the world’s largest manufacturers of plastic packaging products.
Lim expects Scientex to benefit from cost-savings as a result of economies of scale, in terms of operations and administrative efficiencies as well as in the procurement of raw materials.
GW Plastics, which has debts of RM31.1 million and cash of RM14.45 million as at end-June 2012, will become a cash company after selling off its two units.
UEM Group is working out the mechanisms to dispose of its stake in Time Engineering by year-end and will decide which method of disposal it should take soon.
According to UEM’s group managing director and CEO Datuk Izzaddin Idris, the group is looking to sell out of Time Engineering by year-end. The board of directors of UEM will consider several options to cash out of the IT and communication TECHNOLOGY [] company. These include reverse takeover and an outright sale.
Nicorp may again hog the limelight courtesy of its key shareholder Datuk Raymond Chan Boon Siew. According to stock exchange filings, Chan had bought three million shares from the open market at 20.3 sen per unit.
Nicorp has been an active falling stock since Chan told Bursa Malaysia last Friday he had sold down his holdings twice in September. With the purchase on Oct 3, Chan’s stake in Nicorp was raised to 10.06%.
Ahmad Zaki announced that its wholly-owned subsidiary, Ahmad Zaki Sdn Bhd, had on Tuesday received a letter of award from Permodalan Nasional Berhad for CONSTRUCTION [] works worth RM673 million.
The job is expected to contribute positively to the group’s earnings and the net tangible assets for the financial years ending 2012 to 2017, the company said.