Stocks To Watch Bina Puri, Affin, HwangDBS, YLI, Daya, Kelington, construction stocks and SKP

Business & Markets 2013
Written by Ho Wah Foon of   
Wednesday, 04 September 2013 19:31

KUALA LUMPUR (Sept 4): Based on corporate announcements today, the stocks that may lure some interest tomorrow could include Bina Puri, Affin, HwangDBS, YLI, Daya, Kelington, CONSTRUCTION [] stocks and SKP.

BINA PURI HOLDINGS BHD [] said its wholly-owned subsidiary Bina Puri Sdn Bhd has bagged a civil works job worth RM67 million.

Bina Puri said its unit has accepted a letter of award from the Consortium of Apex Energy Sdn. Bhd. and PT Rekayasa Industri for the project known as “Supply, fabrication and construction of civil works, Package 7” in Sipitang, Sabah.

The contract value of the job is RM67.23 million and the works have to be completed within 11 months.

“The contract is expected to contribute positively to the earnings of Bina Puri Group for the financial year ending 31 December 2013,” it said.

AFFIN HOLDINGS BHD [] has signed an exclusivity agreement with HWANG-DBS (M) BHD [] to acquire the latter's financial service businesses.

Affin said the agreement is to buy 100% of HwangDBS Investment Bank Bhd and HDM Futures Sdn Bhd, 70% in Hwang Investment Management Bhd and 49% in Asian Islamic Investment Management Sdn Bhd.

At market close, Hwang DBS (M) Bhd surged 41 sen or 11% to RM4.09 per shares while Affin Holdings was up 7 sen or 1.7% at RM4.16.  

YLI HOLDINGS BHD [] announced its subsidiary has been appointed by KUBOTA Corporation of Japan to make and sell iron pipes under an OEM arrangement for three years.

In a stock exchange filing, YLI said Yew Lean Foundry & Co. Sdn. Bhd, a wholly-owned subsidiary of YLI, will manufacture and sell to KUBOTA ductile iron pipes under OEM from 2013 to 2015. 

The quantum and the prices for the pipes to be supplied to the buyer are to be mutually agreed upon, said YLI.

Kelington Group Bhd announced it has secured two new orders worth RM18.2 million which would be recognized in its financial year ending Dec 31, 2013.

The ultra-high purity (UHP) gas and chemical delivery solutions provider said that one of its orders worth some RM13 million was awarded by one of the world’s largest chip manufacturers, an existing client.

Chairman and chief executive officer Ir. Raymond Gan Hung Keng said the group had been aggressively pursuing projects that are recurring income in nature as part of its strategy to balance income streams.

“We are hopeful to secure more orders from this client over the next two years,” said Gan.

Meanwhile, the other order was secured from a new client which is a prominent player in the bio-pharma industry.

DAYA MATERIALS BHD [] announced that its sub-subsidiary, Daya OCI (Labuan) Ltd (DOCIL), has entered into another Charter Party contract with Technip Norge AS of Norway to appoint DOCIL as a contractor for the provision of second offshore subsea construction vessel.

Services will also include providing a range of offshore services on a long-term charter basis for the North Sea and North Atlantic Regions.

Daya Offshore Construction Sdn. Bhd., another  wholly-owned subsidiary of Daya Materials, will be executing the Charter on behalf of DOCIL.

The Charter is for 100 days to 175 days per year for 3 years, commencing in 2014 with options to extend further up until 2020.

“The estimate value of the Charter ranges from RM100 million to RM176 million, depending on the actual utilisation,” Daya told Bursa Malaysia in a filing.

The company said the contract and the successful implementation of the Charter are expected “to contribute positively towards DMB Group’s earnings and net assets for the period of the Charter”.

Construction stocks may come under pressure after the Masters Builders Association Malaysia (MBAM) said the construction industry has been “seriously affected” by the current raids on illegal immigrants that have led to most workers fleeing to avoid arrest.

The association is urging the government to provide clearer guidelines on these raids and the arrest of foreign workers, under the current nationwide operation to weed out illegal immigrants.

“MBAM members have been seriously affected by raids and most of the workers, whether legal or illegal, have fled the work sites to avoid arrest,” MBAM president Matthew Tee said in a statement today.

According to MBAM, all workers -- including the legal ones -- would be detained unless they are able to prove they have proper documents, which Tee claimed could sometimes be difficult as such documents could be with their employers or with the authorities.

SKP RESOURCES BHD [] plans to reward shareholders of the plastic component manufacturer with a final tax-exempt dividend of 0.9 sen a share.

SKP said the proposed final dividend is for financial year ended March 31, 2013. This brings potential full-year dividends to 2.2 sen a share.

Based on the stock's closing price of 33.5 sen today, the potential full-year dividends translate into a yield of 7%, according’s calculations.

On the final dividend, SKP said the stock will trade ex-dividend Oct 22 while payment falls on Nov 15.