Stocks to Watch UEM Group, Century Software, CBIP, Pharmaniaga, SapuraKencana

Business & Markets 2012
Written by Surin Murugiah of   
Thursday, 01 November 2012 18:49

KUALA LUMPUR (Nov 1): The FBM KLCI could end the week on a higher note on Friday, sustaining its momentum in staying above the 1,670-point level, with support from blue chip counters, including banks, despite the more cautious stance at most global markets.

Asian shares fell on Thursday, but losses were curbed as the region's factory activity surveys mostly improved, with China's official and private sector manufacturing Purchasing Managers Indices (PMIs) confirming a recovery in the growth trend even if it lacked punch, according to Reuters.

European stock index futures pointed to a flat-to-lower open on Thursday, in what is expected to be a light session due to public holidays in part of mainland Europe, it said.

Among the stocks that could be in focus on Bursa Malaysia on Friday are the UEM Group; Century Software Holdings Bhd; CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP); PHARMANIAGA BHD []; and SapuraKENCANA PETROLEUM BHD [].

Reuters reported that UEM and its partners are bidding for bridge projects in Turkey. It said the bid was in a tender for the privatisation of two bridges across the Bosphorus Strait in Istanbul and various motorways across the country, citing the Privatisation Administration (OIB) on Wednesday.

It said there were three groups named by the OBI as the bidders, adding that UEM Group was named together with Koc Holding and Gozde Girisim Sermayesi Yatirim Ortakligi.

Century Software's unit Century Software (Malaysia) Sdn Bhd has received an extension of contract and additional scope/value for the sum of RM2.94 million to supply and maintain of hardware and software for the implementation of the budget online system for the Ministry of Finance.

CBIP's net profit for the third quarter (3Q) ended Sept 30, 2012 rose marginally to RM27.08 million from RM27.36 million a year earlier, on the back of revenue RM 108.7 million versus RM95.32 million.

The company declared a second interim tax-exempt dividend of 10% per share of 50 sen each in respect of the financial year ending 31 December 2012. For the nine months ended Sept 30, CBIP's net profit jumped to RM215.09 million from RM73.26 million.

CBIP also announced it was acquiring a 94% stake in Indonesian company PT Kurun Sumber Rezeki (PTKSR) for a total consideration of RM7.38 million.

Pharmaniaga could be in a position to revive its medical products and services business as it continues to catalyse on the government's prioritisation on health care, according to a report from Hong Leong Investment Bank (HLIB).

Last week, the group inked a Memorandum of Understanding (MoU) with Pusat Pakar Dialysis Traktif Sdn Bhd (PPDT) to explore a strategic partnership with the latter in the business of haemodialysis.

"Besides supplying haemodialysis medical equipment under the MoU that was inked with PPDT last week, Pharmaniaga has also positioned itself as the vendor of related drugs and consumables in order to enjoy recurring income from the deal," said HLIB in a note on Thursday.

Following the news and a recent company visit, Low said there may be a possibility that Pharmaniaga will revive its medical products and services division, after being placed in the back seat during the financial year ended Dec 31, 2011.

"With this, Pharmaniaga is able to provide a one stop solution for medical equipment planning, hospital equipping and procurement based on customers' technical needs, budget and time-frame," said the research house.

Meanwhile, SapuraKencana unit Kencana HL Sdn Bhd has received a contract worth RM135.8 million from HESS Exploration and Production Malaysia B V for the provision of an EPCC of a wellhead platform for Kamelia Field in the North Malay Basin.

The company said the work was expected to be completed by the first quarter of 2013.