Stocks To Watch Salcon, B. Media, Poh Kong, technology stocks, Maybank, MRCB, Kulim

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 20 June 2013 19:28

KUALA LUMPUR (June 20): Based on news flow and corporate announcements today, companies that may attract interest tomorrow could include Salcon, Berjaya Media, Poh Kong, TECHNOLOGY [] stocks, Maybank, MRCB and Kulim.

SALCON BHD [] has submitted bids for RM1.8 billion worth of water-based contracts so far this year.

Executive director Datuk Eddy Leong Kok Wah said following the slow pace of water contracts last year, Salcon is optimistic of doing better this year.

"We have tendered for about RM1.8 billion worth of contracts in the water and waste-water segment so far.

"For the first four months of this year, we have already won a total of RM216 million contracts in the water and waste-water division, and we are very optimistic in our principle activity," Leong told reporters after the group's annual general meeting here today.

According to Leong, Salcon which has tendered for the Langat 2 contract in Selangor, is also eyeing jobs in Sabah and Johor.

BERJAYA MEDIA BHD [] posted a reduced net loss of RM11.98 million in the fourth quarter ended April 30, 2013, from RM37.04 million in previous fourth quarter.

The loss was incurred mainly due to impairment of publishing rights amounting to RM11 million and certain quoted divestments, the company said.

Cumulatively, loss for the full year ended April 2013 totalled RM43.55 million, higher than RM35.16 million in previous year.

POH KONG HOLDINGS BHD [], a leading local goldsmith and retailer, reported that its net profit for  third quarter ended April 30, 2013 (3QFY13) had fallen to RM5 million due to sharp decline in gold prices.

This was 56.81% lower than the previous corresponding quarter’s RM11.58 million.

However, Poh Kong’s revenue for the quarter under review grew by 45.11% to RM279.12 million. This compares to RM192.34 million from a year earlier.  

“The increase in revenue was mainly due to the increase in demand of gold investment products, such as gold bars, wafers and gold jewellery. In April 2013, the sharp fall in gold price contributed a gold rush,” Poh Kong explained in the filing.

The company’s cumulative net profit (9MFY13) stood at RM25.82 million, or 6.29 sen per share, on the back of RM671.72 million in revenue.

In the previous corresponding period, its net profit was RM41.74 million, or 10.17 sen per share, with revenue of RM625.4 million.

Technolgy stocks could attract some attention following a news report that Malaysia's personal computer (PC) market grew by 18% sequentially in the first quarter of 2013 to 898,000 units.

IDC, the global provider of market intelligence and advisory services, said on a year-on-year basis, the market, however, showed a decline by the same percentage.

IDC analyst, Ng Juan Jin, said the growing market share of touch-enabled notebooks in the first quarter of 2013 was an encouraging sign for the PC market.

"The outlook for this form factor is positive due to the availability of a wide array of low-end models which appeal to the local mass market," he added.

But IDC Asia/Pacific Asean research manager Daniel Pang expects the upcoming quarters for Malaysia to be difficult as retailers continued to face challenges, reported Bernama.

MALAYAN BANKING BHD [] has disposed of 5.07 million shares or some 9% in its 97.3%-owned subsidiary Bank Internasional Indonesia (BII) to a third-party investor.

This is to comply with Indonesian policymakers' requirement for Maybank to reduce its stake to achieve a 20% public float in BII, Maybank said.

"The disposal was completed on June 19, 2013. The group has also entered into a commercial arrangement where the economic exposure resulting from the disposal is being retained.

"Hence, the disposal will not result in any material financial impact to the group," Maybank said.

Maybank said it is seeking time extension to comply with the sell-down requirement for the remaining 8.3% stake in BII.  Maybank was not able to fulfill the requirement by the June 1, 2013 deadline.

Malaysia Resources Corporation Bhd (MRCB) today adopted all resolutions, including the merger deal with Nusa Gapurna Development Sdn Bhd (NGD), at its EGM today after more than one hour of heated debate.

The resolution on a RM729 million corporate exercise to merge MRCB and NGD attracted attention due to a legal suit being slapped on NGD by PKNS.

PKNS, which is the state-owned Selangor State Economic Corporation, holds 30% stake in PJ Sentral Development. It has proposed to buy over the remaining 70% stake from NGD, which has declined.  

NGD has been served a writ/statement of claim by PKNS that alleges NGD has breached their shareholders’ agreement that gives PKNS the preemptive right to buy.

PKNS is also seeking a court injunction to restrain the PJ Sentral Development sale.

Although the resolution was adopted, MRCB share fell and ended at RM1.53, down 2 sen, as the legal affair is seen as negative and time consuming.

Kulim Bhd plans to buy up to another 20% in 48.97%-owned New Britain Palm Oil Ltd (NBPOL) to equity account a larger portion of the latter's earnings.

The cash deal, which will raise Kulim's stake to 68.97% in NBPOL, will cost the acquirer some RM820 million.

NBPOL, which runs oil palm PLANTATION []s in Papua New Guinea, is listed on the London Stock Exchange.

Under the exercise, Kulim intends to issue a takeover notice to buy up to 30.01 million shares from NBPOL shareholders at GBP5.50 each (RM27.20). 

Kulim said NBPOL has been a significant contributor to the former's plantation earnings. As such, the partial offer will enable Kulim to capture a larger share of NBPOL's financial results.