Stocks To Watch LBS, MISC, Pharma, Flonic, MTD, AMMB, TNB, Encorp, PIE industrial

Business & Markets 2013
Written by Ho Wah Foon of   
Friday, 16 August 2013 19:32

KUALA LUMPUR (Aug 16): Based on news flow and corporate announcements today, stocks that could move on Monday (Aug 19) include LBS, MISC, Pharma, Flonic, MTD, AMMB, TNB, Encorp, PIE industrial.

LBS BINA GROUP BHD [], which has just completed the sale of some of its China assets, said it will announce its next strategic move at a press conference on Tuesday.

In a press invite issued to the media, the company said: “With a healthy balance sheet and strong financial track record, the group is ready to announce its next strategic initiative.”

Several days ago, the property developer announced it had officially completed the sale of its China assets valued at HKD$1.65 billion.

At maker close today, LBS rose 4 sen to RM1.92 on while its warrant soared 10 sen to RM1.11.

CIMB Research said LBS is expected to reward shareholders via a special dividend and to further unlock its value in remaining China assets.

MISC BHD [] reported that its net profit for second quarter to June 30, 2013, fell 20.8% to RM300.9 million from RM380.1 million posted in the second quarter of previous year.

This was achieved on the back of a lower revenue of RM2.28 billion, compared with RM2.36 billion.

Reviewing its results for the quarter, MISC said revenue decline was due to lower revenue from its heavy engineering division and petroleum business. The shipping giant said profit was eroded by higher operating losses in the petroleum business and higher finance cost.

For the six months to June 2013, MISC saw its accumulated net profit turn around to RM601.4 million, from net losses of RM89.75 million. Revenue, however, rose to RM4.66 billion from RM4.57 billion.

Looking ahead, MISC said 2013 is another “challenging year” for the shipping industry due to soft demand growth, volatile fuel prices and excess shipping capacity. But long term contracts in LNG and offshore business will provide stability to the group.

Flonic Hi-tech Bhd was slapped with a UMA (unusual market activity) query by the stock exchange after an incessant surge in its share price and trades lately.

In a statement, Bursa Malaysia Securities Berhad said it has today issued an UMA query on “the recent sharp rise in price and high volume in Flonic’s securities”.

The stock began to rise from 8 sen in early July. Hence at today’s level its share price has risen more than 150% over the past one and a half months.

Flonic engages in the design, manufacture, marketing, distribution, and trade of precision cleaning systems in Malaysia. It is a loss-making company with net asset per share of 4 sen as at end-April 2013.

MTD Acpi Engineeering Bhd, which is part of a consortium including South Korea's Samsung, is among three bidders which have withdrawn tenders for the proposed PHP60-billion (RM4.5 billion) Light Rail Transit (LRT) Line 1 – Cavite extension project in the Philippines.

A news report by the had quoted Department of Transportation and Communications (DOTC) transportation undersecretary and head of the bids and awards committee Jose Lotilla as saying consortiums led by San Miguel Corp and DMCI Holdings have also withdrawn their bids.

In a statement on the DOTC's website today, secretary Joseph Emilio Abaya said the bids and awards committee is looking at the possibility of extending the bidding process and re-evaluating existing terms.

PHARMANIAGA BHD []’s net profit for the second quarter ended June 30, 2013 fell 62.4% to RM5.87 million from RM15.71 million a year earlier, due mainly to a slowdown in orders from the concession business, recognition of doubtful debts and increased provision for our obsolete stocks.

Its revenue for the quarter fell to RM437.63 million from RM456.74 million a year earlier.

Earnings per share was 2.27 sen while net assets per share was RM1.86.

The company declared a second interim dividend comprising single tier 3.41 sen.

For the six months ended June 30, Pharmaniaga posted net profit RM30.64 million versus RM44.39 million a year earlier, on the back of revenue RM937.97 million versus RM903.48 million a year earlier.

Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin however expressed confidence that prospects for the remaining quarters of the current financial year will improve.

AMMB HOLDINGS BHD [] reported a 6% rise in first quarter net profit from a year earlier as interest and Islamic banking income rose. Income recognition from acquired entities MBF Cards (M) Sdn Bhd and Kurnia Insurans had also supported bottomline.

AMMB told the exchange today that net profit rose to RM467.86 million in the quarter ended June 30, 2013 (1QFY14) from RM442.88 million while revenue climbed to RM1.99 billion from RM1.81 billion.

Looking ahead, AMMB expects Bank Negara Malaysia's move to curb domestic household debt to result in slower retail loan growth in the industry.

"These measures could moderate retail loans growth as the industry adjusts to the new measures. Monetary policy is expected to remain accommodative while managing volatility from capital flows,” AMMB said.

TENAGA NASIONAL BHD [] (TNB) has signed a 25-year power-purchase agreement (PPA) with the state-controlled utility's wholly-owned unit TNB Manjung Five Sdn Bhd.

Under the PPA, TNB Manjung Five will design, construct, own, operate and maintain a proposed 1,000-megawatt coal-fired electricity-generating facility in Manjung, Perak, TNB told the exchange today.

"The PPA, which has an expected commercial operation date of 1 October 2017, governs the obligations of the parties to sell and purchase the daily available capacity and, to the extent despatched, the net electrical output generated by the facility for a period of 25 years in accordance with the agreed terms and conditions," TNB said.

Besides the PPA, TNB said it has also signed a shared-facilities agreement (SFA) with TNB Manjung 5 and TNB Janamanjung Sdn Bhd.

ENCORP BHD [] announced a turnaround in its second quarter results, saying it posted a net profit RM11.5 million for the second quarter to end-June 2013, compared to a net loss of RM3.5 million in previous year corresponding quarter.

Revenue jumped 91% to RM161.6 million, from RM84.5 million.

The company said the increase in revenue was due to higher sales and work progress by the property division. As a result, profit rose.

For the six months to June 2013, net profit posted was RM6.4 million, compared to a loss of RM5.0 million. Revenue rose to RM233.7 million, from RM143.3 million.

The company said it expects to achieve “satisfactory performance” for the current financial year.

P.I.E. INDUSTRIAL BHD []'s net profit rose 15.4% year-on-year (y-o-y) in the second quarter ended June 30, 2013 (2QFY13) on higher revenue and foreign exchange gains.

P.I.E, a manufacturer and assembler of cable and wire, said net profit rose to RM9.55 million from RM8.28 million. Revenue climbed to RM108.33 million from RM91.39 million.

P.I.E. said revenue had grown on "higher revenue from manufacturing activities but partly offset by lower revenue from trading activities".

Cumulative net profit for 1HFY13 rose to RM15.09 million from RM14.17 million a year earlier. Revenue increased to RM189.92 million from RM171.41 million.

For 2QFY13, the firm plans to reward shareholders with a dividend of 32 sen a share. 

Looking ahead, P.I.E. said it is "positive" on its second-half performance. This is in anticipation that the company will get more outsourcing jobs from current and new customers.