Stocks To Watch Nakamichi, Pensonic, EAH, TNB, AirAsia X, CCK, plantation firms, Pantech

Business & Markets 2013
Written by Ho Wah Foon of   
Wednesday, 10 July 2013 19:52

KUALA LUMPUR (July 10): Based on news flow and corporate announcements today, companies that may lure interest tomorrow could include Nakamichi, Pensonic, EA Holdings, TNB, AirAsia X, CCK, PLANTATION [] firms and Pentech.

NAKAMICHI CORPORATION BHD [] announced that the company has been served with two separate copies of winding-up petitions by Lo Man Heng (LMH) and Tamabina Sdn Bhd.

The winding-up petitions, presented to the High Court of Malaya in Kuala Lumpur on July 8, 2013, are scheduled for case management on July 22, 2013.

In the petitions, it was claimed that Nakamichi is indebted to LMH for some RM4.4 million and indebted to Tamabina for the sum of RM7.38 million.

“Based on the latest audited financial statements of the group for FY2012, the total amount of RM11,785,230 represents 18.89% of the net assets value of the group and has material effect on the group’s earning,” Nakamichi said in a filing with Bursa Malaysisa.

Pensonic Holdings Bhd is proposing a bonus issue for its shares and a rights issue for its warrants.
These two exercises shall be completed by the last three months of this year, said the company.

In a filing with Bursa Malaysia, the electrical appliance producer said it will disseminate two bonus shares for every five existing shares held.

Pensonic also proposes a rights issue for its warrants on the basis of one rights warrant per two existing warrants.

EA Holdings Bhd (EAH) announced that its wholly-owned subsidiary EASS Sdn Bhd has received an award from Lembaga Hasil Dalam Negeri Malaysia to provide data and system upgrade services.

The project value is RM59.14 million and is expected to be completed within six months from the date of the award and will be extended for another three (3) years for licensing and maintenance services.

The project is expected to contribute positively to the earnings and net assets of the EAH Group for the duration of the project.

Tenaga Nasional Bhd and its joint venture partner Kharafi National have signed a contract worth 88.9 million Kuwait dinars (RM1 billion) with Kuwait's Ministry of Electricty & Water (MEW) for the operation & maintenance of Shuaiba North Co-Generation (power & distillation) plant. 

In a statement today, Tenaga said the contract was signed via its wholly-owned subsidiary TNB Repair and Maintenance and would be for a period of seven years. 

The dual-fired plant (natural gas and distillate), is able to produce around 780MW of power and 45 million imperial gallons per day of distilled water. The plant was commissioned in 2010.

AirAsia X Bhd, whose shares might have been sold by investors who had acquired the stock at lower prices prior to its initial public offering (IPO), could continue to be in the limelight after its debut trading today. 

An analyst said these investors might have bought shares of the long-haul budget airline at levels below the IPO price of RM1.25 each for institutional and retail investors.

"I suspect selling pressure from pre-IPO investors as they are not subjected to moratorium," the analyst said.

AirAsia X, which was the most actively traded stock today, closed flat at RM1.25 per share with some 160 million shares done.
Some fund managers are, however, taking a long-term view on AirAsia X. Phillip Capital Management Sdn Bhd chief investment officer Ang Kok Heng said he will buy the airline stock if the stock falls.

Alliance Research has a target price of RM1.33 for AirAsia X with a "neutral" call.

CCK Consolidated Holdings Bhd is ready to raise its production to meet the growing demand for their Halal products anticipated during the Muslim fasting month of Ramadan and Hari Raya Aidilfitri celebrations.

Chief operating officer Lim Teck Huak said CCK's processing plant located in Sarawak, which could process 30,000 birds per day, is now operating at about 85 per cent capacity but could increase further.

"It will not be a problem for us to raise our production by another 10 per cent or even 15 per cent, but it all boils down to the need," he told reporters during a day-long media tour of CCK's production facilities.

CCK has a total of 52 retail and wholesale stores nationwide, with two processing factories. Lim said CCK's third processing plant in Kota Kinabalu, Sabah is expected to be operational this year, during which eight more new outlets will also open.

Plantation companies are likely to react to the June palm oil data released today.
Inventories in June 2013 fell 9.4% to 1.65 million tonnes -- the lowest since March 2011, compared with May 2013, the official Malaysian Palm Oil Board said at noon today. This was lower than the street’s estimates of 1.75 million tonnes.

June output rose 2.3% to 1.42 million tons, while exports gained only 0.3% to 1.41 million tonnes.

The CPO futures market, which fell ahead of the release of the data, slid further after the data were announced.

PANTECH GROUP HOLDINGS BHD [] has penetrated the Indonesian oil and gas (O&G) market as its subsidiary has bagged a US$1.5 million (RM4.77 million) to supply parts to the country’s state-owned O&G player.

In a filing with Bursa Malaysia, the steel pipe-maker said Pantech Steel Industries Sdn Bhd has secured a contract to supply induction long bends for Pertamina.

This contract will contribute to Pantech’s revenue for the financial year ending February 28, 2014 (FY14).

“Shipment of the induction long bends to Indonesia is scheduled for the second quarter ending August 31, 2013,” said Pantech.