Business & Markets 2013
Written by Ho Wah Foon
Thursday, 16 May 2013 20:47
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KUALA LUMPUR (May 16): Based on news flow and corporate results today, some stocks that may attract interest include Petronas Gas, AMMB, Deleum, Malayan Flour, Goldis, UMW and auto stocks.
PETRONAS GAS BHD [] has committed to allocating a capital expenditure (capex) of RM8.1 billion for the next five years, mainly to fund its regasification terminals in Lahad Datu and Pengerang, according to Bernama.
Chairman Datuk Anuar Ahmad told reporters after the company’s AGM that the capex will be allocated from its parent Petronas Bhd's total group capital spending of RM60 billion from 2011.
Anuar said the Melaka LNG Regasification Terminal is expected to contribute four to five per cent to the entity's bottom line, for the current financial year ending Dec 31, 2013.
On an annual basis from next year, he said the company expects a 10 per cent profit contribution from the gas terminal.
"The plant was commissioned on April 30 this year and we expect to see about a five per cent contribution for the second half of this financial year, and about 10 per cent contribution annually," he added.
AMMB HOLDINGS BHD [] reported a 25% rise in fourth quarter net profit from a year earlier on higher interest, Islamic banking and insurance operations income.
Lower allowance for bad loans also supported AMMB's bottom line during the quarter.
AMMB said net profit came to RM406.37 million in the quarter ended March 31, 2013 (4QFY13) compared to RM325.28 million previously. Revenue rose 10% to RM1.94 billion from RM1.76 billion.
Cumulative full-year net profit climbed to RM1.64 billion from RM1.48 billion while revenue was higher at RM7.44 billion compared to RM7.14 billion.
AMMB has proposed a dividend of 15 sen a share in 4QFY13. This brings the full-year payout to 22 sen.
DELEUM BHD [] has bagged RM1.4 billion worth of contracts and it is currently tendering for contracts worth RM2 billion, said its group managing director Nan Yusri Nan Rahimy.
"The contracts that we are tendering at the moment are all domestic with the mixtures of three of our segments," he said after the company's AGM today.
The services provider of oil and gas industry has three core business segments, including power and machinery, maintenance, repair and overhaul (MRO) and oilfield services. Going forward, Deleum Bhd is looking for regional expansion in Brunei, Indonesia, Thailand and also some parts in Middle Eastern, said Nan Yusri.
MALAYAN FLOUR MILLS BHD [] is looking at Myanmar as a potential market for its flour milling business.
Chairman Tan Sri Arshad Ayub said there were very few flour milling companies in that country.
"We are eyeing an increase of up to five per cent in our milling business this year.
"After our successful joint venture in Indonesia, we are looking at Myanmar as another potential destination," he told reporters after the group's annual general meeting today.
Arshad said the plant in Indonesia produced about 1,500 tonnes of wheat flour a day.
He said milling business contributed about 50 to 70 per cent of the group's profit.
UMW Holding Bhd is making a foray in the Indonesian automotive market via a proposed joint venture (JV) with the Bluebird Group (BBG).
UMW, the distributor of Toyota cars in Malaysia, said it has signed a JV and shareholders agreement with BBG.
Under the deal, both UMW and BBG will own 49% and 51% respectively in a JV firm which will undertake "various automotive-based businesses in Indonesia”.
"The proposed JV marks a significant step for UMW to further strengthen and solidify its core bases and more importantly, as an impetus towards a new frontier in its quest to penetrate new high growth market.
GOLDIS BHD [] has signed a concession agreement to upgrade, expand and operate a sewage treatment plant in China’s Shandong province.
The company said its wholly owned subsidiary Crest Spring Pte Ltd today entered into a build, operate and transfer (BOT) concession agreement with Yantai Economic and Technical Development Zone City Management and Environmental Protection Bureau.
The BOT concession agreement will last for 23 years.
Goldis explained the project will help it to further enhance and broaden its involvement in the water treatment business in China.
However, the company said the proposed investment will not bring any effect to its earnings for the financial year ending January 31, 2014 (FY14).
Auto stocks may stir some interest on the back of the latest data on vehicle sales.
Sales of passenger and commercial vehicles in April this year increased to 52,489 units from 47,774 units in April last year, according to the Malaysian Automotive Association (MAA), reported Bernama.
MAA said the passenger vehicle segment recorded higher sales of 45,564 units compared with 41,433 units last year, whereas sales in the commercial vehicle segment rose to 6,925 units from 6,341 units last year.
However, it said, the sales volume for April was 5,133 units or nine per cent lower than the previous month because of uncertainty in the market due to the 13th general election.
The association said output of passenger vehicles last month increased to 45,770 units from 39,634 units but output of commercial vehicles decreased to 4,957 units from 5,194 units.
It said total production for both segments increased to 50,727 units from 44,828 units.
On outlook, MAA said it expects the sales volume for May 2013 to be maintained at April's level.