Stocks To Watch Zhulian, Hua Yang, CBIP, Aeon Co, Genting Malaysia, Magna Prima, B. Packaging

Business & Markets 2013
Written by Ho Wah Foon of   
Wednesday, 17 July 2013 19:33

KUALA LUMPUR (July 17): Based on news flow and corporate announcements today, stocks that may lure interest tomorrow could include Zhulian, Hua Yang, CBIP, Aeon Co, Genting Malaysia, Magna Prima and Bright Packaging.

ZHULIAN CORPORATION BHD [] posted a net profit of RM37.93 million for the second quarter to end-May 2013, up 30% from RM29.15 million earned a year ago.

Earnings per share rose to 8.25 sen from 6.34 sen.

The company said its second quarter revenue stood at RM106.23 million, down from RM110.99 million.

It is proposing a dividend of 3 sen, similar to a year ago.

The group, principally involved in the manufacturing and sale of costume jewellery and consumer products on a direct sales basis, said it has targeted a positive growth in the revenue for financial year 2013.

HUA YANG BHD [] said its net profit fell 25% to RM12.32 million in the first quarter ended June 30, 2013, (1QFY14) from RM16.47 million a year ago. Revenue decreased to RM80.5 million from RM97.96 million.

Hua Yang told the exchange today that the weaker financials came amid "slower CONSTRUCTION [] progress" and “minimal launches recognition”.

"Based on the group's pipeline of on-going and upcoming projects, the board remains positive of posting improved results for the financial year ending March 31, 2014," Hua Yang said.

The company said plans to reward shareholders with a share dividend.

In a separate statement, Hua Yang said it intends to undertake a bonus issue of 66 million new shares by giving one bonus unit for every three existing shares held by shareholders.

Hua Yang intends to complete the exercise by the second half of 2013.

CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP) announced that its wholly owned unit Modipalm Engineering Sdn Bhd has bagged a supply contract amounting to RM12.37 million.

CBIP said Modiplam has entered into a contract with Naturaceites of Guatemala for “the supply of equipment and engineering for the extension of a Continuous Sterilisation palm oil mill from 45 tonnes per hour to 60 tonnes per hour for US$3.977 million (RM12.37 million).

“The contract is expected to contribute positively to the earnings of CBIP for the financial years ending 31 December 2013 and 2014,” the company said in its filing with Bursa Malaysia.

Aeon Co (M) Bhd is buying eight hactares (20.93 acre) of land in Johor Bahru from JOHOR LAND BHD [] for RM70.2 million.

Aeon, a major retailer, said it plans to construct and operate a mall on the freehold tract.

"The acquisition is in line with the company’s corporate strategy of accelerating the expansion of its retail business through opening of new malls and outlets. The acquisition provides such an opportunity for the company to acquire land and expands its presence in the growing area of Kempas, Johor.

The acquisition is expected to contribute positively to the future earnings of the company, Aeon said, adding the acquisition is due for completion within 20 months.

Genting Malaysia Bhd said the US Coast Guard has cleared the company’s superfast casino ship to start sailing from Miami, Florida, to its casino resort in the Bahamas from Saturday (July 20).

The go-ahead puts the Genting group, which has been lobbying for a casino licence in Miami since 2011, a step closer towards tapping Miami’s gaming appetite with its casino ship and Resorts World Bimini casino resort.

Genting Malaysia announced the launch of the superfast ferry service on July 1, but the service kick-off was delayed due to inspections by the US Coast Guard.

The company spent US$70 million (RM223 million) to purchase the cruise ship and another US$30 million to bring the ship “to the highest safety standards”, Dana Leibovitz, president of Resorts World Bimini, said in a statement dated July 16.

MAGNA PRIMA BHD [] said it plans to raise funds, a move which could have triggered the sharp rise in the share price of the property developer yesterday.

Magna Prima was replying to Bursa Malaysia's query on unusual market activity in its shares.

“The board of directors of Magna Prima wishes to clarify that Magna Prima is currently in the midst of considering a potential fund raising exercise for the company,” the company said in its filing with Bursa.

Bursa Malaysia had yesterday queried Magna Prima after the stock jumped over 30% to hit limit-up. Magna Prima had risen as much as 30 sen to RM1.18 before closing at RM1.16, with some 8.5 million shares traded.

BRIGHT PACKAGING INDUSTRY BHD [] posted a decline in net profit to RM733,000 for the third quarter to end-May, down 19.8% year-on-year.

Earnings per share declined to 1.69 sen from 2.11 sen in the same period of the last financial year.   

The company said its third quarter revenue was RM11.15 million, down 20.4% y-o-y.

“The lower turnover was due to reduced orders from overseas tobacco manufacturer,” said the company when reviewing its results.

For the nine months to May 2013, Bright Packaging generated revenue of RM31.39 million, a decline of 26.3% from the same period in the last financial year.  

However, its net profit soared 76.3% to RM4 million for same nine months.