Stocks To Watch DiGi, Multi-Code, Scomi Energy, LBS, Lion Corp

Business & Markets 2013
Written by Chong Jin Hun of   
Friday, 19 July 2013 19:24

KUALA LUMPUR (July 19): Based on Bursa Malaysia announcements and news flow today, stocks to watch this Monday (July 22) may include the following companies.

DIGI.COM BHD [] reported a 17% rise in second quarter net profit from a year earlier as the telecommunication-network provider's revenue rose on higher mobile Internet income.

Lower depreciation and amortisation had also supported bottom line. DiGi said net profit rose to RM380.01 million in the second quarter ended June 30, 2013 (2QFY13) from RM324.19 million previously. Revenue climbed to RM1.65 billion from RM1.58 billion.

Cumulative 1HFY13 net profit increased to RM708.66 million from RM644.82 million a year earlier. Revenue rose to RM3.3 billion from RM3.15 billion. The firm plans to pay its second interim tax-exempt dividend of 4.8 sen a share for 2QFY13.

Multi-Code Electronics Industries (M) Bhd (MCE) announced that it is setting up a 100,000-rupee (RM5,360) joint venture (JV) firm with an Indian entrepreneur to tap the booming Indian automobile market.

MCE said it had executed a JV agreement yesterday with Ishwar Singh, chairman of Haryana Industries Group to produce automotive parts in India. MCE will hold 60% of the new venture while the remaining 40% goes to Ishwar.

Scomi Energy Services Bhd said the oil and gas (O&G) support-services provider has won a marine vessel-leasing contract from Coastal Energy Co (CEC) in Thailand.

According to Scomi Energy, the contract which will see the firm provide an anchor handling tug supply vessel to CEC, could be worth as much as RM22 million.

LBS BINA GROUP BHD [] shareholders had earlier today approved the property developer's proposed disposal of its entire interest in Lakewood Golf Club and Zhuhai Development Land for HK$1.65 billion (about RM679 million)

Under the transaction, LBS will receive cash of HK$500 million and 225.56 million new shares in Zhuhai Holdings worth HK$ 300 million. LBS will also receive promissory notes worth HK$ 850 million.

Upon completion of the exercise, LBS will reap a pro forma gain of RM309 million for the financial year ending December 31, 2013.

Lion Corp Bhd's subsidiary Megasteel Sdn Bhd will pay TENAGA NASIONAL BHD [] (TNB) RM213.3 million as full-debt settlement.

Lion Corp said that Megasteel and TNB “had entered consent judgment for Megasteel to pay RM213.3 million to TNB as full and final settlement in nine equal monthly instalments of RM23.7 million each, commencing July 31, 2013.”