Stocks To Watch Index stocks, Kulim, Oriental, BIMB, Nakamichi, Genting Plantation, Mudajaya, Media Chinese, Tanjung Offshore, Supermax, Faber, Crest Builder, and Zelan

Business & Markets 2013
Written by Ho Wah Foon of   
Wednesday, 28 August 2013 20:20

KUALA LUMPUR (Aug 28): As the Syria tension could intensify later tonight and the outflow of foreign funds may continue, it is possible that index-linked stocks will suffer another bout of sell-down tomorrow.

But a technical rebound also could occur if investors see value in many of the quality stocks that had been beaten down for the past several days.

Alliance Research said benchmark FBMKLCI saw the emergence of bargain hunting at 1,660 levels today. As such, the index could likely trade above 1,687 level tomorrow. The KLCI closed 0.9% down at 1686.17.

But based on corporate results today, stocks that could catch eyeballs tomorrow include the following:

Kulim (Malaysia) Bhd posted a net profit of RM66.1 million for the second quarter ended June 30, down 40% from RM110.4 million posted a year ago, due partly to low palm oil prices.

Revenue for the quarter fell to RM792.3 million from RM856.3 million.

Looking ahead, Kulim said palm products prices are expected to recover strongly towards end 2013 due to anticipated global economic recovery.

ORIENTAL HOLDINGS BHD [] saw its net profit for the second quarter to June 30 shrink 60% year on year to RM20.6 million and its revenue fall 6% to RM661.8 million.

Looking ahead, the company said its automotive and plastic segments will operate under very competitive market conditions, PLANTATION [] segment to be impacted by the volatility of prices, hospitality segment is expected to improve on its profitability while the property development and building material segments will perform satisfactorily.

BIMB HOLDINGS BHD [] reported a 20% increase in second quarter net profit from a year earlier on higher income from Islamic banking and insurance operations.

BIMB said net profit rose to RM69.58 million in the quarter ended June 30, 2013 from RM58.19 million. Revenue increased to RM707.45 million from RM590.26 million.

BIMB plans to pay a dividend of 3.5 sen a share for the quarter in review.

Going forward, the bank said it hopes to grow its home and vehicle-financing businesses. The lender also intends to disburse more loans to the corporate sector.

Nakamichi Corp Bhd is facing the risk of having its shares suspended from trading if it is unable to submit its second quarter results from September 9.

The firm said it was “incapacitated” to submit its financial results for the second quarter ended June 30, 2013, because its 51%-owned subsidiary Tamabina Sdn Bhd had yet to furnish accounts to Nakamichi.

Nakamichi added that should it fail to report its 2QFY13 results within the given timeframe, Bursa Malaysia will suspend trading in Nakamichi’s securities beginning September 9, 2013.

Genting Plantations Bhd posted a 39% fall in its net profit to RM 42.4 million for the second quarter ended June 30, compared to RM69.8 million in profit registered in the previous corresponding quarter.

Revenue was RM290.7 million, down slightly from RM294 million.

The board declared an interim dividend of 3.75 sen per ordinary share, less 25% tax.

MUDAJAYA GROUP BHD [] posted a 24% decline in second quarter net profit from a year earlier as revenue fell on  lower income from CONSTRUCTION [].

Mudajaya said net profit declined to RM46.14 million from RM60.4 million. Revenue fell to RM432.14 million from RM558.81 million.

The property/construction firm plans to pay a dividend of three sen a share for the quarter in review.

Looking ahead, the firm said it is well placed to benefit from Malaysia's Economic Transformation Programme and private financing initiative projects.

MEDIA CHINESE INTERNATIONAL LT []d posted a net profit of RM42.1 million for the first quarter ended June 30, 13% lower than its 2QFY13 profit. Revenue was RM399.2 million, from RM389.2 million previously. 

The group said its growth was mainly contributed by the increase in revenue from the group’s publishing business in Malaysia and the tour segment.

Looking ahead, Media Chinese said it expects the business environment to remain challenging in the coming quarters due to the slowing economy and increased competition in its core markets.

TANJUNG OFFSHORE BHD [] is back in the black with a net profit of RM5.7 million for its second quarter ended June 30, compared to a net loss of RM6.1 million recorded in the previous corresponding quarter. 

Revenue was RM81.8 million, from RM64.4 million previously, due to additional engineering packages contracts secured from oil majors in the region. 

Looking ahead, the group said it is optimistic on the prospects of oil and gas industry locally and the region

SUPERMAX CORPORATION BHD [] said its net profit for the second quarter to June 30 stood at RM35.4 million, up 18.3% compared to RM30 million posted a year ago.

Revenue for the country’s second largest glove maker in the second quarter also rose to RM330.0 million from RM232.1 million a year ago.

“The group’s revenue was higher by 42.2% compared to a year ago. This was largely because of new capacity added from new and refurbished lines,” said Supermax.

The higher revenue enabled the group to record a higher net profit, and earnings per share rose to 5.13 sen per share from 4.41 sen, it added.

FABER GROUP BHD [] announced that its net profit for the second quarter to June 30 fell 62.8% year-on-year to RM7.3 million.

Its revenue also fell year-on-year, registering RM168.3 million for the three months ended June 30 from RM218.0 million posted in the second quarter of 2012.

CREST BUILDER HOLDINGS BHD [] said on the back of a revenue of RM68.8 million, it posted a profit after tax (PAT) of RM20.2 million or an increase of 221% compared to its previous quarter of RM6.3 million.

“The significant improvement in its profits was mainly due to the change in fair value of investment property in the current quarter of the financial year under review.”

ZELAN BHD [] saw its net profit for the first quarter ended June 30 plunge some 66% to RM7.6 million, as compared with the previous corresponding quarter.

But revenue for the quarter was RM70.7 million, up from RM25.3 million last year.

As at June 30, the group had net current liabilities of RM267.5 million.