Stocks To Watch Tanjung Off, Public Bk, MAHB, MAS, IHH, Perdana Petrol, Tropicana, Sersol

Business & Markets 2013
Written by Ho Wah Foon of   
Tuesday, 23 July 2013 19:19

KUALA LUMPUR (July 23): Based on corporate announcements today, stocks that may lure interest tomorrow could include Tanjung Offshore, Public Bank, MAHB, MAS, IHH, Perdana Petroleum, Tropicana and Sersol.

TANJUNG OFFSHORE BHD [] is undertaking a private placement to issue new shares of up to 10% of its issued and paid-up share capital to fund “strategic acquisitions”.

“Tanjung is currently identifying suitable business entities and/or assets and intends to carry out acquisitions to complement its existing businesses,” it said in a filing to Bursa Malaysia today.

The company said the issue price will be determined at a later stage and it aims to complete the exercise by the second half of 2013. There will be a maximum of 37.61 million new shares to be issued, it added. 

PUBLIC BANK BHD [] posted a 9% rise in second quarter net profit from a year earlier on higher interest and non-interest income, besides lower allowance for bad loans.

The large banking group plans to pay a dividend of 22 sen a share.

Public Bank said net profit rose to RM1.02 billion in the second quarter ended June 30, 2013 from RM942.07 million previously. Revenue was higher at RM3.8 billion versus RM3.47 billion.

"The improved earnings was mainly due to higher net interest income and higher net fee and commission income partially offset by higher other operating expenses," Public Bank said.

Looking ahead, the group expects to sustain its strong market position in the domestic consumer, and small and medium-sized enterprise financing segments.

"Despite intense competition, the group is expected to sustain its residential property financing segment growth given its focus on home mortgages for owner occupation and the broader base mass market segment, Public Bank said.

Malaysia Airports Holdings Bhd’s (MAHB) net profit for its second quarter ended June 30, 2013 (2QFY13), rose 1% year-on-year on a 21.09% increase in revenue.

The airport operator's net profit for 2QFY13 was RM101.75 million on revenue of RM978.16 million.

MAHB said it had incurred higher operating cost during the quarter under review. But net profit had increased on lower taxation and zakat.

MAHB’s cumulative net profit for 1HFY13 was 11.99% higher from a year earlier, at RM227.81 million. Revenue rose 36.84% to RM2.01 billion.

On prospects, MAHB said it remains optimistic due to its stable past performance.

It added that its airports recorded double-digit passenger growth of 13.6% in 1HFY13 from a year earlier. A total of 37 million passengers have passed through MAHB’s 39 airports in Malaysia.

Malaysia Airlines’ unit MASkargo Sdn Bhd is looking to venture into the niche service like 'cool chain' for food and pharmaceutical products full scale to offset economic challenges, Bernama reported.

Its chief executive officer, Mohd Yunus Idris, said MASkargo started the service on July 1 and is now looking to venture into the segment full scale as both industries were recession-proof.

Mohd Yunus said MASkargo also plans to move freighters into Hyderabad to capture the biggest pharmaceutical centre in the world.

But on the freighter industry, he said it was likely to face challenging times as cargo demand has contracted by 4% in the first and second quarter of this year.

"There is over-capacity, depressing yield and shipping lines were the main competitors. This will contribute to the overall well-being of air freight industry," he said.

Therefore, Mohd Yunus said, the second half of this year would be a tough year for MASkargo as there was no sign of fast recovery in the Eurozone.

He said MASkargo expected revenue of RM2.45 billion this year against RM2.4 billion last year.

IHH Healthcare Bhd is selling off its entire shareholding Gleneagles CRC Pte Ltd for S$5.14 million (RM12.91 million).

The healthcare group said its wholly owned indirect subsidiary Parkway Holdings Ltd has signed a share purchase agreement with PHL, Mitsui & Co Ltd and EPS Corp for the share disposal.

Parkway Holdings holds a 51% stake in Gleneagles CRC. The latter’s subsidiaries comprise Gleneagles CRC (China) Pte Ltd, Gleaneagles CRC (Thailand) Co Ltd, Gleneagles Clinical Research International Pte Ltd and Gleneagles CRC (Australia) Pty Ltd.

Perdana Petroleum Bhd is buying a marine vessel from Nam Cheong International Ltd for US$29.5 million (RM93.77 million) to expand its business.

Perdana Petroleum said it has signed a memorandum of agreement with Labuan-based Nam Cheong for the acquisition of an accommodation and work barge.

"The proposed acquisition is in line with the expansion plans of the Perdana Petroleum Group in providing marine-support services to the offshore oil and gas facilities and delivery of the vessel expected in the third quarter of 2014," its statement said.

Tropicana Corp Bhd is looking to raise funds for land acquisitions by proposing a private placement exercise.

The property developer, formerly known as Dijaya Corp Bhd, said it plans to raise between RM198.61 million and RM239.02 million.

The fund from the private placement will be used for land bank acquisitions, working capital and estimated expenses for the private placement.

The private placement, which is expected to be completed by the second half of this year, will be issued at a price determined later.

This is the second private placement exercise conducted by Tropicana. The first, completed on June 5, was issued at RM1.78 per share.

SerSol Bhd was slapped with an “unusual market activity” querry by Bursa Malaysia today.

The company was told to report on corporate development or rumour that had resulted in its shares rising sharply today and recently.

Responding, the industrial chemical manufacturer said it is not aware of any factor which had contributed to the unusual market activity.

The counter surged 6.5 sen or 18.84% to close at 41 sen. A total of 37.12 million of its shares were traded.