Stocks To Watch China Auto, Alam Maritim, FGV, MRCB, MWE, KEuro, Malaysia Pacific

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 03 October 2013 19:36

KUALA LUMPUR (Oct 3): Based on corporate announcement today, stocks that may stir some interests tomorrow could include China Auto, Alam Maritim, FGV, MRCB, MWE, KEuro and Malaysia Pacific.

China Automobile Parts Holdings Ltd (CAP) has proposed to undertake a bonus issue of up to 330 million warrants in the firm. This will follow a planned private placement of up to 60 million new shares in the company to third-party investors.

CAP, which manufactures automotive components, said it plans to distribute one warrant for every two shares held after the share placement.

"For implementation purposes, the proposed private placement is expected to be completed before the entitlement date. As such, the placement shares will also be entitled to the proposed bonus issue of warrants.

The company said the share placement aims to expand the shareholder base of the firm. CAP hopes a larger shareholder base will improve trading liquidity of the stock.

It said the private placement and bonus issue are due for completion in the fourth quarter of this year.

ALAM MARITIM RESOURCES BHD [] has secured an estimated RM22 million contract to provide an anchor handling tug supply vessel for a client.

Alam Maritim, an oil and gas support-services firm, said the contract value takes into account the project duration’s optional extension.

"The contract, valued approximately at RM22 million, is for a primary period of six months with an extension option of another two months," Alam Maritim said.

The firm said the contract is expected to contribute positively to its earnings and net assets in financial years ending December 31, 2013 and 2014.

Felda Global Ventures Bhd (FGV) may come under scrutiny after its president indicated at a press conference that FGV may pay lower dividend this year due to bearish palm oil prices.

FGV president and chief executive officer Mohd Emir Mavani Abdullah said this is because most companies are showing negative outlook in their balance sheets.

“Not only FGV but I think all companies are affected by the CPO prices. It will affect us and everybody else, we are in the same boat actually,” he said.

MIDF Research recently stated that more than 60% of FGV’s earnings come from the PLANTATION [] business which was tied to the volatility of CPO price.

But in a statement issued later today, Mohd Emir clarified that FGV being a listed entity, has in place a dividend policy for the benefit of its shareholders.

He assured that FGV will maintain and abide by its dividend policy of a minimum payout ratio of 50% of its net profit. For the financial year ended December 31, 2012, FGV paid a total dividend of 14 sen per share.

MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) announced that via its wholly owned subsidiary it has secured a RM80.8 million contract from GCH Retail (Malaysia) Sdn Bhd to construct Giant Hypermarkets.

The property and infrastructure developer said via Gelanggang Harapan CONSTRUCTION [] Sdn Bhd, it had on Oct 1 accepted an award from GCH Retail to construct the hypermarkets.

“The contract sum is totalled RM80.8 million. From this, RM45.8 million is for the Giant Hypermarket in Danau Kota, Setapak, Kuala Lumpur while the remaining RM35 million is for another Giant Hypermarket in Kampar, Perak,” said MRCB.

MRCH said both projects are expected to contribute positively to the future earnings of the group.

MWE HOLDINGS BHD [] has completed its acquisition of 115.4 million shares (22.15% stake ) in KUMPULAN EUROPLUS BHD [] (KEuro) from Tan Sri Chan Ah Chye, which was agreed to in July 2013.

In addition, the garment-maker seeking business diversification has also purchased another 26 million KEuro shares from Chan via direct deals, according to an announcement by KEuro.

Earlier reports said Penang-based MWE is attracted to the potential of the 233-km West Coast Expressway (WCE) project, majority owned by KEuro. The total value of the expressway is estimated at RM5 billion.

It is also attracted to KEuro’s 50% stake in the RM10 billion Bandar Rimbayu, formerly known as Canal City, near Kota Kemuning, Shah Alam.

IJM CORPORATION BHD [] is the other major shareholder of KEuro, holding about 24% stake in the company.

Malaysia Pacific Corporation Bhd has signed a memorandum of understanding (MOU) with China-based Black Sea Horizon Investment Holdings Ltd to secure business partners for local firm's consumer products trade hub in Johor.

Malaysia Pacific, a property developer and investor, said its Asia Pacific Trade and Expo City (APTEC) serves as a platform for China-Malaysia strategic economic partnership.

"This MOU shall come into effect on the date of signing and shall remain in force for 90 days and shall be extended with the mutual agreement in writing of both parties,” it said.

Black Sea is principally involved in consumer trade, property development, hospitality, oil refineries, oil trade and others.