Stocks To Watch IRCB, Hibiscus Petroleum, TNB, property firms, Alam Maritim, MAS

Business & Markets 2013
Written by Ho Wah Foon of   
Tuesday, 03 September 2013 19:51

KUALA LUMPUR (Sept 3): Based on corporate announcements today, stocks that may excite investors tomorrow include IRCB, Hibiscus Petroleum, TNB, property firms, Alam Maritim and MAS.

INTEGRATED RUBBER CORPORATION [] Bhd (IRCB) announced that it has entered into a debt settlement agreement today that cleared all its debts with four banks. This raises the hope that the rubber glove maker could be uplifted from PN17 status soon.

The debts were settled via cash advances of RM44.8 million from its investors, said IRCB in its filing with Bursa.

Due to defaults in debt payments to the lenders, IRCB was classified as a Practice Note 17 / financially distressed company on Dec 27, 2012.

The debt settlement is expected to contribute positively towards the earnings of IRCB for the FYE 31 January 2014 due to a one-off gain from the debt waived by the lenders as well as a reduction in loan interest, said IRCB.

TENAGA NASIONAL BHD [] and property firms are viewed positively due to the increase in fuel price, said CIMB Equity Research today.

Last night, Prime Minister Datuk Seri Najib Razak announced price hikes for RON95 petrol and diesel by 20 sen a litre and the delay of several public-sector projects, except for the MRT2 and MTR3 projects.

“The property and CONSTRUCTION [] sectors should be big winners while the likelihood of tariff adjustments for Tenaga has increased,” wrote Terrence Wong, CIMB’s the head of research.

Property developers should be winners as PROPERTIES [] are seen as inflationary hedges. This was the experience after the big petrol price hike in 2008, noted Wong.

The construction sector can also be a winner as reaffirmation of MRT 2 & 3 will be a big relief.

Tenaga should also be a winner as the chances of an electricity price hike and tariff pass-through formula have increased now, Wong said.

Hibiscus Petroleum Bhd announced today that Norway has approved the acquisition of 4 production licenses in the Norwegian Continental Shelf by its joint venture unit Lime Petroleum Norway AS (Lime Norway) from North Energy ASA (North Energy).

The total purchase price for the four concessions is about Norwegian Kroner 28.2 million or US$ 4.7 million (about RM15 million). It is targeted to be completed by Sept 30, 2013.

Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc, owned by Hibiscus Petroleum, Schroder & Co Banque S.A. and Rex Oil & Gas Ltd.

Hibiscus Petroleum’s managing director and Lime Petroleum’s chairman Dr Kenneth Pereira said this development provides the company access to concessions in the mature and prolific NorwegianContinental Shelf.

Alam Maritim Resources Berhad (AMRB) has secured a contract via its wholly-owned subsidiary for the provision of one unit of Anchor Handling Tug Vessel and another for one unit of straight supply vessel, with both contracts totalled RM37 million.

In a statement to the stock exchange, AMRB said Alam Maritim (M) Sdn Bhd had recently received two award letters from an established oil and gas company for the provision of the said vessels.

“The contracts are expected to contribute positively to the earnings and net assets of the group for the financial year ending Dec 31, 2013 till 2015,” said AMRB.

The statement also said the duration of contract for the Anchor Handling Tug Vessel would span a primary period of twelve months.

Malaysia Airlines Bhd (MAS) is increasing its flights from Kuala Lumpur into Medan from Sept 15.

"Our flights to and out of Medan have always been very encouraging. Due to the increase in demand we have decided to mount these additional flights," MAS’ regional senior vice-president (Malaysia) Muzammil Mohamad said in a statement today.

With this addition, MAS will be flying three times daily into Medan and will be offering a total of 6,720 seats weekly in and out of Medan.