Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 09 May 2013 20:37
KUALA LUMPUR (May 9): Based on news flow and corporate announcements today, stocks that could attract interest tomorrow (May 10) include Maxis, Hong Leong group of companies, IOI, CIMB, Axiata, JP Morgan stock picks and Tien Wah Press.
Maxis Bhd reported a 17% fall in first quarter net profit from a year earlier as higher operating cost curbed the mobile telecommunication network provider's bottom line.
Maxis said higher expenses for administration, network operation and finance had led to a net profit of RM475 million in the quarter ended March 31, 2013 (1QFY13). This compares to RM572 million previously.
Revenue, however, rose 4.5% to RM2.33 billion from RM2.23 billion. Maxis said post-paid and pre-paid average revenue per user (ARPU) fell RM4 and RM2 respectively "on lower usage" while wireless broadband ARPU came to RM65.
Maxis plans to pay an interim single-tier tax-free dividend of eight sen a share for 1QFY13.
Looking ahead, Maxis said it “remains positive of its prospects in 2013”.
HONG LEONG FINANCIAL GROUP BHD [] saw a 37.6% year-on-year plunge in its net profit for the third quarter on reduced revenue.
For the third quarter ended March 31, 2013, the financial group posted a net profit of RM320.04 million, down from RM513.27 million in the previous corresponding quarter.
Earnings per share fell to 30.8 sen, from 49.5 sen.
Its revenue also fell to RM1.08 billion, from RM1.14 billion.
The company declared a dividend of 23 sen per share.
For the nine months to March 2013, Hong Leong Financial posted higher profit of RM1.098 billion, compared to RM977.96 million. Its total revenue was at RM3.32 billion, versus RM3.12 billion.
HONG LEONG BANK BHD [] reported a net profit of RM454.21 million for its third quarter ended March 31, 2013 (3QFY13), down 22.93% from the previous corresponding quarter’s RM589.34 million.
Its revenue remained flat at RM1.2 billion.
For the nine months to March this year (9MFY13), the banking outfit saw a 7.61% rise in net profit to RM1.44 billion on revenue of RM3.03 billion.
Compared to the previous corresponding nine months, Hong Leong Bank’s net profit was RM1.34 billion on lower revenue of RM2.92 billion.
Hong Leong Capital Bhd posted a net profit of RM13.07 million for its third financial quarter ended March 31, 2013, up 42.3% year-on-year.
Its revenue rose to RM72.21 million, from RM63.86 million in the previous corresponding quarter.
The company said the group recorded a higher profit mainly due to higher contribution from its major operating segments: investment banking and stockbroking segment.
For the nine months to March 2013, the group posted a total net profit of RM30.16 million, as against RM26.80 million in previous corresponding period.
Its accumulative revenue was RM217.35 million, versus RM156.89 million.
IOI CORPORATION BHD [] has suspended trading of its shares from today “pending a material announcement”. If trading is resumed on May 10, there could be major share movement.
According to a news reports, IOI PROPERTIES [] BHD [] will be seeking a relisting on the main market of Bursa Malaysia in September 2013 via a demerger exercise from IOI Corp.
Not less than half of IOI Prop’s RM15 billion asset value will be given back to IOI shareholders in the form of a dividend-in-specie, said the report.
IOI Corp share jumped 21 sen or 4% to RM5.33 on heavy trades of 7.2 million shares before trading was suspended.
CIMB Group Holdings Bhd today submitted a dual-listing application to Securities Commission Malaysia and Bursa Securities for listing on Stock Exchange on Thailand (SET).
“If all approvals are obtained and implementation details are ironed out, the proposed SET Listing is expected to be implemented by the end of 2013,” said the financial group.
CIMB may well become the first foreign firm in Thailand to have a dual listing on the Bangkok bourse and become Thailand’s second biggest after Siam Commercial Bank.
Axiata Group Bhd’s unit Dialog Axiata, Sri Lanka's top mobile operator, disclosed today that its first quarter this year recorded a net profit of 1.594 billion rupees, compared to a loss of 530.9 million rupees in the first quarter of 2012.
Earnings per share stood at 0.2 rupee, versus loss per share of 0.07 rupee.
Revenue increased to 15.242 billion rupees, up from 12.854 billion.
JP Morgan, in its post-election Malaysian strategy report today, recommended investors to “keep buying” its Malaysian Domestic Nine stocks for exposure to domestic demand and growth.
These nine stocks are: AMMB, Axiata, Berjaya Sports Toto, CIMB, Dialog, Gamuda, IJM Land, KLCC and Media Prima.
It said the Malaysia Domestic Nine index has outperformed the market, rising 19% since Mar 22 vs. FBMKLCI’s +9.2%.
“Other stocks that we believe are likely to continue to react positively to the removal of elections risk premium are: UEM Land, IJM, WCT, SAKP, Tenaga, Genting Malaysia, SP Setia and Bursa Malaysia,” it added.
The strategy report, written by three analysts led by Hoy Kit Mak, noted the local stock market has risen 4.7% following BN’s win in the 13th general election last Sunday. But it said the FMBKLCI is still lagging ASEAN peers, with playing catch-up seen.
TIEN WAH PRESS HOLDINGS BHD [] saw the net profit for its first quarter ended March 31, 2013 (1QFY13) almost doubled to RM7.64 million from RM4.02 million a year ago.
Its revenue however dipped by 2.79% to RM94.74 million from RM97.46 million.
The printing company said its improved profit was mainly due to lower cost of sales and operational efficiencies.
Tien Wah Press said the reduction in revenue was due to phasing of demands from customers.
The company said it remains positive on its outlook due to growth potential despite softening market demand globally.