Stocks To Watch Maybank, SBC, CSC, OCK, AAX, plantation firms, Atlan, Btoto

Business & Markets 2013
Written by Ho Wah Foon of   
Friday, 02 August 2013 18:44

KUALA LUMPUR, (Aug 2): Based on news flow and corporate announcements today, the stocks that may attract interest on Monday (Aug 5) could include Maybank, SBC, CSC, OCK, AAX, PLANTATION [] firms, Atlan and Btoto.

MALAYAN BANKING BHD [] (Maybank) has appointed Datuk Abdul Farid Alias, in his mid-40s, as the new president and CEO of the bank, succeeding Datuk Seri Abdul Wahid Omar and ending months of speculation.

"We will continue with executing our 2015 plan we have set out for ourselves. That's all I can say for now," said Abdul Farid when asked about his plans for Maybank at a press conference today. 

The vacancy came about after Wahid was appointed to the new Cabinet of Datuk Seri Najib Razak in May to serve as Minister in the Prime Minister’s Department.

Abdul Farid became Maybank deputy president and head of global wholesale banking in July 2010, according to Maybank. Subsequently, he was appointed as non-independent non-executive director of Maybank Asset Management on 21 March 2012.

SBC CORPORATION BHD [] plans to undertake renounceable rights issue of up to 49.46 million new shares to raise funds to repay its debts.

The property firm is also planning a bonus issue of up to 24.73 million new shares.

SBC said the rights issue will be done on the basis of three rights units for every five existing shares held. The company is offering one bonus share for every two rights unit subscribed.

SBC expects to complete the rights and bonus issue by the fourth quarter of this year.

CSC Steel Holdings Bhd recorded a net profit of RM7.5 million for its second quarter ended June 30, a 29.5% year-on-year drop from RM10.7 million in similar quarter previously.

The group said the drop in earnings was due to "the significant write-down of inventories of RM9.4 million as a result of valuing inventories at lower cost and net realizable value."

This was on the back of a revenue dip to RM289.1 million, from RM308.6 million in the previous corresponding quarter, primarily due to the reduction in sales volume of all steel products and marginal drop in their selling prices.

Looking forward, the group said that there were signs that international steel prices have stabilised and strengthened, and demand was improving slowly. "We expect the sales volume in third quarter to recover steadily but with thin margin," it said.

OCK Group Bhd, a telecommunication network services firm, announced it has entered into a subscription agreement with Lembaga Tabung Angkatan Tentera (LTAT) for the placement of 25.9 million shares, representing 10% of OCK’s issued and paid up capital.

It also said it has received approval from the authorities for the issuance of a RM150 million Sukuk.

“The placement shares have been fixed at an issue price of RM0.47 per share, which represents a discount of approximately 9.75% to the five-day weighted average market price of OCK shares,” said the statement.

“With the proceeds of RM12.173 million, the group intends to utilise the funds for the group’s regional expansion plans and working capital,” it added.

“With LTAT investing in the group, we foresee that there will be many business opportunities going forward with the government agency, in particular Ministry of Defense for their M&E works,” it said.

AirAsia X Bhd (AAX), the long-haul, low-cost affiliate of AirAsia Group, aims to grow the North Asia market, in particular Japan and South Korea.

Chief Executive Officer Azran Osman-Rani said the airline saw high growth potential and the opportunity for it to become a market leader, Bernama reported.

He said the airline, which has enjoyed several “buy” calls from analysts today, will be looking at significant growth in its Japan network by increasing the number of flights into the country by year-end.

"Japan is one of our core markets in Asia-Pacific and we are confident it will continue to grow. Since its inception, AirAsia X has carried over nine million passengers and we have seen an average passenger load of 85% to Tokyo and 81% to Osaka," he said.

Plantation firms may attract interest after Reuters reported today that Malaysia's end-July palm oil.

stocks are likely to ease to their lowest in more than two years as demand continued to outstrip production.

A Reuters survey of five plantation companies showed inventory levels may have dropped 3% to 1.6 million tonnes in July, from 1.65 million tonnes in June.

Output in the world's second largest palm oil producer, meanwhile, likely rose 10% from a month ago to 1.56 million tonnes in July, the biggest jump so far this year.

ATLAN HOLDINGS BHD [], a mechanical-component manufacturer, is selling two industrial tracts in Klang, Selangor for a collective sum of RM30 million.

Atlan said it is disposing of the two tracts of 1.2 ha and 2.4ha respectively to Netflix Sdn Bhd. The tracts are priced at RM12 million and RM18 million respectively.

Atlan said proceeds from the disposals will be used as security substitution for banking loans and to finance Atlan's working capital needs.

The land disposals are due for completion by the fourth quarter of Atlan's financial year ending February 2014.

BERJAYA SPORTS TOTO BHD [] (BToto) is seeking regulators' approval to extend the deadline for the firm's proposed transfer of its 100% stake in Sports Toto Malaysia Sdn Bhd to Sports Toto Malaysia Trust (STM Trust).

BToto, a number forecast operator, said "an application to seek an extension of time of six months from 24 August 2013 until 23 February 2014 for BToto to implement the proposed transfer has been submitted to the controller of foreign exchange of Bank Negara Malaysia today".

BToto plans to list STM Trust on the Singapore exchange.