Stocks To Watch IJM, IHH, TaAnn, Parkson, PPB, Jaya Tiasa, Lion Corp, D-Lady, UOA…

Business & Markets 2013
Written by Ho Wah Foon of   
Tuesday, 27 August 2013 20:13

KUALA LUMPUR (Aug 27): Based on news flow and corporate results released today, stocks that may attract investor interest tomorrow include IJM, IHH, Ta Ann, Parkson, PPB, Jaya Tiasa, Lion Corp, Dutch Lady, UOA, Prestariang, Eversendai, Mah Sing and MAA.

IJM Corp Bhd is looking through offers to buy its stakes in highway concessions in India.

IJM managing director Datuk Teh Kian Ming told reporters today that there have been offers made for all five concessions owned by IJM in India but he did not name any of the interested parties.

In a filing to Bursa Malaysia, IJM Corp reported an 85% rise in first quarter net profit from a year earlier as the diversified CONSTRUCTION [] group’s revenue rose.

IJM said net profit rose to RM164.34 million in the quarter ended June 30, 2013 from RM88.83 million. Revenue was higher at RM1.4 billion compared to RM1.04 billion.

Looking ahead, IJM said it expects satisfactory performance from its construction and property operations. But the current trend of palm product prices may impact its PLANTATION []’s profitability.

"The group’s toll, ports, power and water operations are expected to provide growing recurrent revenue streams thereby further enhancing the bottom line of the group’s Infrastructure division,” IJM said.

IHH Healthcare Bhd reported a 61% drop in second quarter net profit from a year earlier as revenue fell. Profit and revenue had fallen as the hospital operator registered gains from the sale of medical suites at its Parkway Pantai hospitals a year earlier.

IHH said net profit fell to RM156.76 million in the quarter ended June 30, 2013 from RM398.9 million. Revenue declined to RM1.68 billion from RM2.69 billion.

IHH is "cautiously optimistic" on its profitability for the current financial year. The firm expects to register start-up cost, depreciation and finance expenses in new investments. Higher staff expenses, besides rental and other operating cost, are also expected to hurt.

TA ANN HOLDINGS BHD [] posted an 82% rise in second quarter net profit from a year earlier. This came mainly on a A$20.3 million (RM60 million) compensation from Australia’s government for wood-supply entitlement.

Ta Ann said net profit rose to RM24.2 million from RM13.32 million. Revenue climbed to RM199.93 million from RM187.99 million.

Higher plywood sales had also supported group bottom line, the firm said.

Looking ahead, Ta Ann said the timber sector is expected to be the leading revenue contributor for the group while logging and oil palm operations are seen as the main profit contributors.

The company anticipates better performance from the various divisions.

PARKSON HOLDINGS BHD []’s net profit for fourth quarter to June 30 fell 63% year-on-year to RM30.16 million.

Revenue for the quarter rose slightly to RM801.48 million, from RM799.56 million.

For the full year, total profit stood at RM240.37 million on total revenue of RM3.501 billion. In the previous financial year, net profit totalled RM380.08 million on revenue of RM3.420 billion.

Reviewing the results, Parkson said the financial year under review had been “challenging” for its operations amid global economic uncertainties.  This had resulted in weak consumer sentiment, especially in China and Vietnam. But its retail operations in Malaysia and Indonesia had managed to post reasonable growth.

PPB GROUP BHD [] said today it expects to achieve “good” results for its full financial year in 2013, supported by domestic demand and flour milling expansion overseas.

“PPB Group’s operations are expected to perform well in 2013, nonetheless the overall financial results would depend substantially on Wilmar’s business performance for the year,” said Leong Choy Ying, chief financial officer of PPB, at a briefing for the media/analysts.

On a media question whether there will be higher dividend paid due to better performance expected for this year, PPB’s managing director Lim Soon Huat said:

“Our strategy is to pay dividend from operating cash flow, and one of the two major sources is from Wilmar… In the first half of this year, we have paid interim dividend one sen higher than last year’s interim, so it will depend on second half performance.”

JAYA TIASA HOLDINGS BHD []’s net profit for the fourth quarter to June 30 plunged 80% year-on-year to RM5.76 million, from RM28.74 million in the previous year fourth quarter.

The timber-plantation company’s 4Q revenue slid 9.8% y-o-y to RM257.2 million from RM285.2 million.

On prospects ahead, Jaya Tiasa expects selling prices of timber products to remain firm while continued weakness in CPO prices will prove “challenging”.

Lion Corp Bhd has reversed its losses with a net profit of RM9.9 million for the fourth quarter ended June 30. It posted a loss of RM235.3 million at the same time last year. 

Revenue for the quarter came in lower at RM738.8 million, from RM949 million in FY2012. 

Looking ahead, the group said since the implementation of the new steel policy which took effect on Feb 1, the market has improved gradually. However, the market situation deteriorated towards the end of June 2013.

"The group will continue to work with the authorities to plug the loopholes and leakages in order to enable the local steel industry to grow and expand in an orderly manner," it said. 

DUTCH LADY MILK INDUSTRIES BHD [] saw a 15% rise in its net profit for the second quarter ended June 30 to RM34.6 million. This compares with a net profit of RM30 million in the previous corresponding quarter.

Revenue also rose to RM249.7 million, from RM217.5 million, mainly due to strong sales in the company’s powder and liquid milk products.

Looking ahead, Dutch Lady said it is most concerned with the increasing dairy raw material prices and the weakening of the ringgit.

"However, the board of directors of the company is cautiously optimistic on its 2013 financial year performance given the strength of its Dutch Lady brand," it said.

UOA Development Bhd posted a net profit of RM78.6 million for the second quarter ended June 30, a 25% fall from the RM105 million recorded in 2QFY12. 

The group said the lower earnings were mainly due to the "absence of fair valuation gains recognised on investment PROPERTIES [] in the preceding quarter".

Revenue for the quarter came in at RM295.6 million, from RM197.5 million at the same time last year. 

Looking ahead, the group said it will continue its focus on development in Greater Kuala Lumpur and source for strategic development lands that meet the criteria. 

Prestariang Bhd achieved a 15.8% increase in profit after tax (PAT) and a 16.1% increase in revenue when compared to its previous year corresponding quarter.

The company recorded PAT of RM10.0 million on the back of RM27.2 million in revenue.

Eversendai Corp Bhd posted a net profit of RM16.5 million, a 46% drop from RM30.5 million in the previous corresponding quarter, due to lower profit contribution from its Middle East and India segments.

However, gross profit in the Malaysian segment recorded a jump of 187.1% as compared to the previous corresponding period.

MAH SING GROUP BHD [] recorded a 16% rise in its net profit to RM69.8 million for the second quarter ended June 30, 2013 (2QFY13). This compares with RM60.1 million in the previous corresponding quarter. 

Revenue also increased to RM475.7 million in 2QFY13 from RM455.2 million.

Looking ahead, the property group said it is well positioned to achieve a strong set of results for FY13.

MAA Group Bhd sank into the red with a RM15.8 million loss for the second quarter to June 30, versus profit of RM24.78 million in the second quarter of previous year.

Nevertheless, 2Q revenue rose 11.4% year-on-year to RM158.9 million from RM142.7 million.

Going forward, the group foresees challenges in its general insurance operations in Indonesia, specifically performance and business viability.

On its PN17 status, its board said its intention is to maintain the listing status of the group.