Stocks To Watch Integrated Logistics, SapuraKencana, Dialog, Sime Darby, HSL, Yinson

Business & Markets 2013
Written by Ho Wah Foon of   
Friday, 28 June 2013 22:07

KUALA LUMPUR (June 28): Integrated Logistics and SapuraKencana are likely to lead the active counters on Monday, possibly with gains, due to their positive announcements today.

The other stocks that could attract investor attention include Dialog, Sime Darby, HSL and Yinson.

INTEGRATED LOGISTICS BHD [] announced that its 70% indirectly-owned Hong Kong unit, IL HK, has agreed to sell its entire equity interests in IL Shenzhen and IL Henan to Winfair of Hong Kong for RM519 million (RMB998 million).

ILB will obtain proforma gains of RM178 million from the proposal disposals.

“Upon the completion of the proposed disposals, ILB may become a cash company,” said ILB in its filing with Bursa Malaysia.

Winfair International Holdings Ltd (Winfair) is a subsidiary of C.J.H. Investment Company Limited, which has guaranteed the performance of the purchaser’s obligations under the agreement.

“The proposed disposals present an opportunity for the company to realise the value of its investments in IL Shenzhen and IL Henan, taking into consideration the proforma gains expected to be realised amounting to RM178 million.”

SapuraKENCANA PETROLEUM BHD []'s net profit for the first quarter ended April 30, 2013, increased by over 100% to RM93.67 million from RM41.66 million registered in the same period last year.

Revenue for the period surged to RM1.62 billion from RM682.83 million in previous year similar quarter.

The leading integrated oil and gas service provider said the higher revenue was contributed by the fabrication, hook up and commissioning and offshore CONSTRUCTION [] and subsea services business segments.

"With the completion of the group's acquisition of Seadrill's tender rigs business in April 2013, the group will have an improved portfolio of assets and a stronger order book," it said.

Going forward, it said the capital spending in the upstream oil and gas sector is expected to remain bullish.

DIALOG GROUP BHD [] said it has completed 65% of its first phase of Pengerang Deepwater Petroleum Terminal, said its executive chairman Ngau Boon Keat.

"We are on schedule to complete the first phase by first quarter next year," he told the reporters during a press conference today.

The total storage capacity of first phase is 1.3 million cubic metre, he said, adding the total tanks that the company is planning to set up in this phase is 57.

So far, it has set up 40 tanks on site.

The deepwater project is a joint venture between Dialog Group Bhd and Royal Vopak, the world's largest independent tank storage provider with the former holding 51% and the latter's 49%.

SIME DARBY BHD []’s industrial arm, via its joint venture (JV) with the Netherlands- based Terberg group, has secured contracts worth up to RM80 million with PSA Singapore Terminals (PSA), the world’s largest container transhipment hub.

In a statement Friday, Sime Darby said the contracts would see the JV, Terberg Tractors Malaysia Sdn Bhd, manufacturing and supplying a total of 299 units with options for another 330 units of Terberg terminal tractors to PSA.

Sime Darby Industrial managing director Chong Kwea Seng said Terberg terminal tractors are renowned for being reliable and efficient.

“The award of these contracts is very significant to us, as PSA’s requirements are the benchmark of the world’s port industry. This signifies the standards and quality of the products that they use for their operations,” said Chong.

The first delivery to PSA will comprise 49 Terberg terminal tractors starting from May 2013 with the remaining units to be delivered by February 2014.

Hong Seng Lee Bhd (HSL) has landed a construction  contract worth RM228 million for a building project at Petra Jaya in Kuching, Sarawak.

The company said it had entered into an agreement with Eastbourne Corporation Bhd on June 27 for the job.

It said the scope of works included the construction of an 18-storey commercial and office building with a two level basement and related infrastructure works. 

The company said the duration of the contract works was 30 months and will be due to be completed by the first quarter of 2016.

“The contract is expected to contribute positively to the earnings and net assets of HSL Group for the financial years ending 2013 to 2016,” it said.

YINSON HOLDINGS BHD [] reported that its net profit for the first quarter to end-April surged to RM15.4 million from RM10.7 million in similar quarter previous year.

But revenue fell to RM228.3 million, from RM264.2 million.

Explaining its results, Yinson said revenue decrease was due to falls in sales of trading and transport business.

But increase in contribution from marine transport business and revenue contribution from JV company had helped to push up profit, it added.

“Looking forward, we are confident that we will continue to deliver favourable results for the rest of our financial year with the anticipated contributions from our upcoming acquisition of Fred Olen Production.” commented Lim Han Weng, group managing director.

“The proposed acquisition of FOP will potentially provide an extensive and immediate international platform for Yinson to expand its presence and operation growth to become the world’s 6th largest FPSO player,” added Lim.