Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 20 March 2013 20:21
KUALA LUMPUR (March 20): Based on corporate announcements and news flow, stocks that may attract some interest could include Glomac, Poh Huat, Public Bank, Hong Leong Bank, AMMB Holdings, Willowglen and government-linked companies.
GLOMAC BHD [] reported a 16% rise in third-quarter net profit from a year earlier as lower minority interests lifted the property developer's bottom line. This came amid higher revenue during the period.
Glomac said net profit came to RM25.36 million in the third quarter ended March 31, 2013 (3QFY13) against RM21.89 million a year earlier. Revenue rose 10% to RM159.85 million from RM145.29 million.
During 3QFY13, the property company had registered a much lower minority interests expenses of RM1.01 million compared to RM10.01 million a year earlier.
Its cumulative nine-month (9MFY13) net profit climbed 11% to RM70.29 million from RM63.53 million a year earlier as revenue rose 9% to RM445.32 million.
Looking ahead, Glomac said it expects its performance for financial year ending April 30, 2013 to improve. This is based on the developer's "on-going development projects and the level of work targeted to be completed" during the year.
The firm plans to reward shareholders with a dividend of three sen a share less 25% tax during the quarter in review.
POH HUAT RESOURCES HOLDINGS [] Bhd posted a net profit of RM4.78 million for the first quarter ended Jan 31, 2012, up 115% compared to similar quarter in previous financial year.
The group also recorded a higher turnover of RM94.98 million, compared to RM84.68 million recorded in the previous year’s corresponding quarter.
“The significantly higher turnover is mainly due to the higher shipment of furniture from Vietnam as furniture importers in the US responded to the prospects of stronger consumers’ spending amid improving employment and housing starts numbers,” the company explained.
PUBLIC BANK BHD [], HONG LEONG BANK BHD [] and Am Bank (or AMMB HOLDINGS BHD []) may attract some interest after Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said the Financial Services Act (FSA) will not affect their shareholdings.
"The FSA will not impact the shareholding in banks like Public Bank, AmBank, HongLeong Bank as the stakes in these banks were held even before the Bafia (Banking and Financial Industry Act) was implemented in 1989," she said in response to media questions at a press conference today.
The FSA, to be enforced in mid-2013, will limit the shareholdings of individuals and groups in financial institutions.
The comment by Zeti was made amid speculations on whether the controlling shareholders of these banks will have to pare down their stakes, which have exceeded the statutory limits.
WILLOWGLEN MSC BHD [] said its unit Willowglen Services Pte Ltd has secured two separate contracts worth of a total RM15.29 million.
The company said the first contract, worth RM8.57 million, was for the supply and installation of lift surveillance system to 1,148 numbers of existing lifts. The contract runs from Apri1 2013 to November 2013.
The second contract, worth RM6.72 million, is for replacement of remote terminal units for 6.6KV substations. The job runs from April 2013 to March 2017.
Both contracts are expected to boost the group’s earnings from the financial year ending Dec 31, 2013 to 2016 through the duration of the respective contracts.
Astro, MAHB, IHH, Telekom, Axiata, Tenaga and UEM Land may come under spot light if investors have taken note of a Maybank Investment Bank research report that expects Khazanah Nasional Bhd to pare its stake in these firms.
According to Maybank, divestment in government-linked listed companies is the continuing theme in 2013 market.
“We expect the divestment programme to gather pace after the 13th general election (13GE), depending on the latter’s outcome,” Maybank IB Research said.