Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Thursday, 25 April 2013 19:38
Thursday, April 25, 2013
KUALA LUMPUR (April 25): Based on today’s news flow and exchange filings, the stocks that could attract investors’ attention include PetChem, Bright Packaging, Country View, Daibochi, TM, UEM Land, Pintaras Jaya and JTI.
Petronas Chemicals Group Bhd (PetChem), together with BASF, will collectively invest about US$500 million in integrated aroma ingredients complex in Gebeng, Kuantan.
The project will allow the parties to meet the global growing demand of customers in the flavour and fragrance industry, especially in Asia.
The project will be developed in phases, with the first plant expected to be operational in 2016.
The project involves the development of a complex comprising a plant for citral and precursor plants, which will be integrated with the existing facilities of BASF-Petronas Chemicals Sdn Bhd in Gebeng.
The two groups will also invest in downstream production for aroma ingredients, a new world-scala plant for L-menthol and a plant for citronellol.
BRIGHT PACKAGING INDUSTRY BHD [] announced that its current board has passed a resolution to revoke an earlier board decision on the 100% policy pay-out for the next five years to focus on the growth of the company.
The company said based on the current assessment of cash needs of its business, it requires the earnings to be re-invested into its capacity and excessive funds, which are required for the reinvestment for business expansion.
But the board said if there is any excess profit, it shall distribute dividends at a later date.
COUNTRY VIEW BHD []’s first quarter net profit more than doubled from a year earlier on higher property sales in Johor and land disposal gains.
The real estate developer said net profit came to RM17.19 million in the quarter ended February 28, 2013 (1QFY13), versus RM5.95 million previously. Revenue rose 67% to RM63.35 million from RM37.87 million.
Looking ahead, Country View said it expects to post better results for FY13 on income recognition from the Taman Nusa Sentral and another project “Residence at The Peak”.
The firm, which had earlier paid a first interim dividend of six sen a share less 25% tax during 1QFY13, plans to pay another four sen less tax. This brings the total to 10 sen a share.
PANTECH GROUP HOLDINGS BHD [] enjoyed a 21% jump in its final quarter net profit following higher demand for its trading division’s hardware from the oil and gas industry.
The group’s net profit for its fourth quarter for the financial year ended February 28, 2013 (4QFY13) came to RM12.62 million, against RM10.41 million last year.
Revenue was 24% higher at RM156.3 million, versus RM126.02 million in the previous corresponding period.
The company proposed a final single-tier dividend of 1.2 sen per share, against 1.3 sen last year.
Its full-year dividend amounted to 4.6 sen per share, up from 3.5 sen per share distributed in the last financial year.
For the full year, Pantech’s FY13 net profit came to RM55.01 million or 11.51 sen per share, up 60.69% from previous financial year’s RM34.23 million or 7.6 sen per share.
Pantech’s full year revenue was RM637.16 million in FY13, up 46.6% from RM434.6 million.
Daibochi Plastic and Packaging Industry Bhd posted its highest quarterly net profit of RM7.1 million for the first quarter ended 31 March 2013 (1Q13), a jump of 39.4% year-on-year.
The company said its 1Q13 group revenue increased 6.7% to RM73.4 million, versus RM68.8 million previously, largely due to increased sales in its packaging business.
On the back of its 1Q13 results, Daibochi is declaring a first interim dividend of four sen per share, to be distributed to shareholders on 7 June 2013.
Thomas Lim, managing director, is buoyant on the group’s prospects in the current financial year as he anticipates a significant increase in export sales in 2013 on sales orders from new multinational customers.
“With this, we believe that the group is poised for another record year in revenue and net profit,” added Lim.
TELEKOM MALAYSIA BHD [] (TM) will be signing an agreement tomorrow (April 26) with UEM Land Bhd, a wholly owned subsidiary of UEM LAND HOLDINGS BHD [].
The agreement is for TM to provide high-speed broadband (HSBB) service to residential development projects by UEM Land in Nusajaya, Johor.
As at the end of last year, TM’s HSBB service had reached 1.38 million premises, surpassing the government’s target of 1.34 million.
TM’s HSBB service, dubbed UniFi, had a subscriber base of 514,000 as of February of this year.
PINTARAS JAYA BHD [], a CONSTRUCTION [] and engineering firm, has secured another contract for the year, this time valued at RM36 million.
Pintaras Jaya said its wholly owned subsidiary Pintaras Geotechnics Sdn Bhd had received a letter of award from Permata Cermat Sdn Bhd to undertake earthworks, piling works and retaining walls for a proposed condominium project in Mont’ Kiara.
The works, said Pintaras Jaya, is set to begin on April 30, 2013 and has a completion period of 13 months. The job is expected to contribute positively to Pintaras Jaya group’s future earnings, the company said.
This is the firm’s fourth contract win, bringing the year-to-date contract value win to RM133.56 million.
JT INTERNATIONAL BHD [] (JTI) expects its operating environment to remain “extremely challenging” caused by the continued sale of illegal cigarettes and a possible hike in excise duty.
According to the group’s chief financial officer, Thean Nam Hooi, the index of illegal cigarette trade in 2012 was still high at 34.5%, a minimal drop from 36.1% in 2011.
He added that if the government imposes excise tax hike in cigarettes this year, the legal tobacco industry volume will further decline.
Thean is “cautiously positive” on JTI’s outlook, saying it could be gauged after the first six months of its financial year.