Stocks To Watch SKP, BCorp, Karyon, Astino, Goldis, JTI, Zelan, Ireka

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 30 September 2013 20:02

KUALA LUMPUR (Sept 30): Based on corporate announcements and news flow today, stocks that could be exciting to watch tomorrow include SKP, BCorp, Karyon, Astino, Goldis, JTI, Zelan and Ireka.

SapuraKENCANA PETROLEUM BHD [] said its net profit for the second quarter ended July 31 soared 132.5% year-on-year to RM410.5 million. Revenue also jumped to RM2.45 billion, from RM2.06 billion a year ago.

The company said the rise in revenue and profit was mainly due to larger contribution from its drilling & energy services.

“The segment revenue and profit before taxation for current financial period has increased by RM704.9 million or 144.5% and RM199.1 million or 157.6% respectively as compared to corresponding quarter of the preceding year, mainly due to the inclusion of Seadrill’s businesses results subsequent to completion of tender rigs business combination.”

For the half year to July 31, 2013, the group achieved a net profit of RM504.13 million, up from RM218.18 million a year ago, while its revenue jumped to RM4.11 billion from RM2.74 billion.

On prospects, SapuraKencana said it remains well placed to strategically grow its businesses. It said it will continue to deliver healthy financial performance for the remaining half of the financial year.

BERJAYA CORPORATION BHD [] posted a net profit of RM53.43 million for the first quarter to July 31, which was 90.6% higher than profit of RM28.02 million in the first quarter of previous year.

The group registered a revenue of RM2.02 billion, up from RM1.80 billion reported in the previous year corresponding quarter, on contributions from the property investment and development, marketing of consumer products and services segments.

But the gaming business operated by Sports Toto Malaysia Sdn Bhd, the principal subsidiary of

Berjaya Sports Toto Berhad, reported a lower revenue in the current quarter under review.

KARYON INDUSTRIES BHD [] declared a tax-exempt interim dividend of 5% in respect of the financial year ending Dec 31, 2013.

This will be payable on Oct 28, the company said.

ASTINO BHD [] reported a 28% drop in fourth quarter net profit from a year earlier.

Astino said net profit fell to RM5.9 million in the quarter ended July 31, 2013 from RM8.18 million. Revenue declined to RM123.07 million from RM129.36 million.

Astino's full-year net profit however rose to RM31.61 million from RM26.41 million a year earlier. Revenue rose to RM511.83 million, from RM456.41 million.

The firm has proposed a single-tier final dividend of 5.68 sen a share for the quarter in review.

Looking ahead, Astino said it is challenging for steel-based CONSTRUCTION [] materials. The firm said it may manufacture new building materials catered for new markets in the country and abroad.

GOLDIS BHD []’s net profit for the second quarter ended July 31, 2013, increased 113% year-on-year to RM47 million, from RM22 million in the second quarter the previous year.

Its 2Q group revenue also rose 24.4% to RM27 million from RM22 million a year earlier.

The investment holding company said its property, ICT and waste water treatment divisions reported higher profits but its aquaculture and F&B division recorded losses.

Cumulatively, 1H net profit rose y-o-y to RM79.6 million from RM43 million while 1H revenue registered RM54 million versus RM44 million in the previous corresponding quarter.

JT International Berhad announced it will be raising the prices of cigarettes that it manufactures and distributes in Malaysia for all its brands effective Tuesday, 1 October 2013.

The company is the manufacturer of cigarette brands Mevius, Winston, Salem and Camel in Malaysia.

“The price revision follows an excise tax increase of 14% imposed by the Government on Sept 27, 2013,” said the tobacco company in a statement.

ZELAN BHD []’s shareholders have approved the construction and engineering firm's proposal for a corporate restructuring plan to wipe out its accumulated losses and trim its debt.

Speaking after its AGM, Zelan's managing director Datuk Mohd Nor bin Idrus said the restructuring plan gives the opportunity for the firm to start on a "clean slate", as it will have a cleaner balance sheet.

However, he said Zelan will need time to effectively turn around, as one financial year will not be sufficient.

"It will take more than one financial yeat for us to turn around. But what's good about this restructuring plan is, it will give us a clean slate and we will be able to start over," Mohd Nur told reporters today.

IREKA CORPORATION BHD [], an infrastructure, real estate and TECHNOLOGY [] company, expects to see a big jump in its turnover by 2015 as the company is optimistic of securing more property development projects.

Quoting executive director Monica Lai Voon Hon, Bernama said there are eight projects in the pipeline located in the Klang Valley and in Nilai, Negeri Sembilan, to be launched within three to four years.

"We expect to receive RM2.2 billion after the completion of the eight projects, and we're planning to launch a series of projects by next year," she told a press conference after its annual general meeting today.

For the financial year ended March 31, 2013, the group recorded total revenue of RM329.9 million, compared to RM429.9 million in the previous year, due to a reduction in revenue in the construction segment.

But Ireka posted a pre-tax loss of RM38.4 million in the financial year ended March 31, 2013 compared to a pre-tax profit of RM14.1 million in the previous year.

Lai said, however, Ireka went into the current financial year with key construction projects under its belt and an order book of RM1.1 billion.