Stocks To Watch TNB, Bursa, Bintulu, Felda, Masteel and TSH

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 18 July 2013 20:21

KUALA LUMPUR (July 18): Based on news flow and corporate announcements today, stocks that may catch eyeballs tomorrow could include Tenaga, Bursa, Bintulu, Felda, Masteel and TSH.

TENAGA NASIONAL BHD [] (TNB) announced net profit jumped 155% to RM1.71 billion in the third quarter ended May 31, 2013, from RM672.4 million in previous year similar quarter due to foreign exchange (forex) gains, higher power sales and lower fuel costs.

Revenue rose to RM9.65 billion from RM9.19 billion on higher electricity sales.

Tenaga’s profit figure surpasses street forecast of RM1.1 billion.

For the nine months to May 2013, Tenaga's cumulative net profit rose to RM4.39 billion from RM3.35 billion a year earlier. Revenue climbed to RM27.63 billion from RM26.51 billion.

"The board of directors is of the view that the prospects of the group for the year ending August 31, 2013, remains stable," Tenaga said.

BURSA MALAYSIA BHD [] reported a 45% rise in second quarter net profit from a year earlier as the stock exchange operator earned higher income from its securities-trading segment.

The company said it plans to reward shareholders with total dividends of 36 sen for 2QFY13 -- an interim and a special dividend of 16 sen and 20 sen respectively.

Bursa said net profit rose to RM54.82 million in the second quarter ended June 30, 2013, from RM37.73 million previously. Revenue climbed to RM130.35 million from RM105.38 million.

"The higher profit in 2Q13 was mainly a result of higher trading value on the securities market as compared to 2Q12," Bursa said.

Bursa said its cumulative 1HFY13 net profit rose to RM93.02 million from RM78.35 million a year earlier while revenue increased to RM240.79 million from RM215.24 million.

Looking ahead, the firm said it expects market interest to continue on strong earnings potential of firms. "We expect our financial results this year to improve compared to the previous year," Bursa said.

BINTULU PORT HOLDINGS BHD [] said it has awarded a RM306 million port-CONSTRUCTION [] job to a consortium comprising Pekerjaan Piasau Konkerit Sdn Bhd and China Harbour Engineering Co Ltd.

Bintulu Port said the contact involves the construction of the proposed Samalaju Port in Bintulu, Sarawak.

"The duration of this contract shall be thirty (30) months from the notice to commence work which will be issued separately," Bintulu Port said.

Felda Global Ventures Holdings Bhd (FGV) chairman said the board is confident that its newly appointed CEO will be able to take the group “forward as it pursues its strategic blueprint”, when appealing for people to stop doubting the new head’s credentials.

Tan Sri Haji Mohd Isa Abdul Samad said in a statement that the appointment of Mohd Emir Mavani Abdullah as FGV President/Chief Executive Officer was made because the group’s board was satisfied that he has the capabilities and experience.

“Mr Emir has extensive corporate and government experience, both in Malaysia and overseas, in various capacities… In addition, Mr Emir is backed by a strong and experienced management team comprising professionals in their respective fields,” said Mohd Isa.

Mohd Isa urged all parties to allow FGV under Emir’s leadership to concentrate on delivering value to its shareholders. Steel Works Bhd (Masteel) came under national spotlight again today after  DAP national publicity secretary and Petaling Jaya MP Tony Pua called for an immediate stop for the direct negotiations between the government and the steel manufacturer for a Johor rail project (Johor Metropolitan Commuter Network or JMCN).

Pua said there should be an open tender for the project.
The Edge Malaysia, in its June 17-23 issue, quoted Masteel CEO Datuk Seri Tai Hean Leng as saying that MCN would invest RM300 million in the project, and receive a RM700 million government soft loan.

On July 15, Pua had pointed out that since Masteel can recoup its investment in 12 years, this invites the question of why the government needed to give MCN a 37-year concession period, allowing them to make net profit for 25 years.

"The cost of the whole project is RM1 billion. The government is granting the concessionaire a RM700 million soft loan. If you can grant a 70% soft loan, why privatise it? Why not do it yourself? The idea of privatisation is to allow the private company to foot the capital?" Pua had questioned then.

The DAP MP said based on the company's reply that “experience in complex mechanical and electrical hardware and automation is sufficient”, there was little justification for direct negotiation as he was certain "scores of other companies" can do the job.

He further added: "Therefore given Masteel feedback, the direct negotiations must stop immediately and Prime Minister Datuk Seri Najib Razak himself must insist that the project be tendered openly and competitively."

TSH Resources Bhd said its unit is selling its 16.17% stake in Pontian United PLANTATION []s Bhd to Felda Global ventures Bhd (FGV) for RM195.8 million cash.

The proposed disposal is expected to result in a gain of RM86.4 million and an increase in earnings pershare  of about 10 sen, the company informed Bursa.

In its Bursa filing, TSH said its indirect unit Bisa Jaya Sdn Bhd has inked an agreement with FGV to sell its 1.398 million shares in Pontian United at RM140 per share.

“TSH invested in Pontian since 2005 and after eight years, the board decides to dispose off Pontian shares to unlock its value of investment and the proceeds raised will be utilised for repayment of bank borrowings, future business expansion and working capital requirements,” said the company.