Stocks To Watch Deleum, IGB REIT, CMMT, Bright Packaging, i-Bhd, Glomac, Gadang, Sunway

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 24 October 2013 19:36

KUALA LUMPUR (Oct 24): Based on news flow and announcements today, stocks that deserve attention tomorrow include Deleum, IGB REIT, CMMT, Bright Packaging, i-Bhd, Glomac, Gadang and Sunway.

Deleum Bhd announced that its unit Turboservices Sdn Bhd has received a letter of award from Petroliam Nasional Berhad (PETRONAS) to provide aftermarket turbomachinery maintenance services for Solar Turbines Incorporated’s gas turbines in Malaysia.

This letter of award provides a general framework for the establishment of the Long Term Service Agreements (LTSA), which shall be signed by Turboservices and the respective users replacing the existing agreements, the company said.

The appointment of Turboservices is effective from Sept 16, 2013, and shall subsist for seven years, with the right of PETRONAS to grant an extension option of three years thereafter.

“The LTSAs is expected to contribute positively to the earnings and net assets per share of Deleum for the duration of the LTSAs,” said Deleum.

IGB Real Estate Investment Trust’s (IGB REIT’s) net property income soared 740% year-on-year (yoy) to RM54 million from RM6 million in the third quarter ended Sept 30, 2013.

Its 3Q revenue also surged spectacularly by 777% to RM108 million from RM12.3 million a year earlier.

IGB REIT attributed the phenomenal increase in net property income to the acquisition of investment properties, which was completed on Sept 20 last year.

Cumulatively, 9M FY13 net property income registered RM154 million versus RM6.4 million, while revenue recorded RM316 million compared to RM12.3 million in the previous corresponding quarter.

CapitaMalls Malaysia Trust (CMMT) said it achieved a distribution per unit (DPU) of 2.26 sen for the quarter ended 30 September 2013, 6.1% higher than the DPU of 2.13 sen for the same quarter last year. 

The annualised DPU of 8.97 sen for 3Q 2013 represents an increase of 5.9% over the same period last year, and translates to an annualised distribution yield of 5.8% based on CMMT’s closing price of RM1.54 per unit on Oct 23.

For 3Q 2013, CMMT achieved distributable income of RM40.0 million, 6.2% higher than the RM37.7 million for 3Q 2012. 

This was underpinned by net property income of RM51.8 million, which grew 5.7% from RM49.0 million for 3Q 2012. 

Bright Packaging Industry Bhd may lure some interest after Asia Media Group Bhd chief executive officer, Datuk Ricky Wong Shee Kai, has raised his stake in Bright Packaging to 23.56% with the purchase of an additional 360,000 shares on the open market.

Bright Packaging said Wong raised his total stake to 10.20 million shares via his investment holding company, Wong SK Holdings Sdn Bhd.

In a separate statement, the company also announced its “best-ever” revenue for the fourth quarter. For the quarter ended Aug 31, 2013, its revenue increased to RM20.8 million from RM13.46 million in the same quarter of 2012.

The higher revenue was due to an increase in local customers’ orders from liquor and confectionery industry, it said.

For the financial year ended Aug 31, 2013, the company posted total profit of RM4.5 million compared to an accumulated loss of RM26.4 million in 2012.

Bright Packaging said it had re-valued two parcels of its freehold land and building located at Lot 20 & Lot 23 of Subang Hi-Tech Industrial Park at RM28.2 million, which resulted in a revaluation surplus of RM18.05 million, recognised in the quarter’s financial statements.

i-Berhad has acquired 0.42 hectares of land in Jalan Changkat Kia Peng here to build a luxurious high-rise project, the Grand i-Residence, with an estimated gross development value (GDV) of RM820 million.

Worth RM132 million, the land located in the vicinity of the Kuala Lumpur City Centre was purchased from Sumuracres Sdn Bhd via i-Berhad's subsidiary, I-Marcom Sdn Bhd.

i-Berhad said the Grand i-Residence will comprise 442 fully-furnished luxurious residential units, with an average selling price of RM2,300 per square feet.

The project is expected to commence in mid-2014 and slated for completion by mid-2019.

Glomac Bhd is optimistic of maintaining its strong performance in the current financial year ending April 30, 2014, if existing government policies for the industry remain intact in the 2014 Budget.

Group Managing Director/ Chief Executive Officer Datuk FD Iskandar said should the government tighten any property industry-related policy related to the property industry, it might have some negative impact on industry players and purchasers.

Gadang Holdings Bhd posted a revenue of RM113.45 million for the period ended 31 August 2013 (1Q14) as compared to RM47.27 million in the previous corresponding period ended 31 August 2012 (1Q13), an increase of 140.01% year-on-year.

The increase in revenue was a result of higher contributions from construction and property activities, the company said in a statement.

In line with the above, the group registered a higher profit before tax of RM9.90 million in 1Q14 as compared to RM3.71 million in 1Q13.

Sunway Bhd’s unit Sunway South Quay Sdn Bhd has entered into a 67:33 joint-venture (JV) with SEA Investment Four Pte Ltd — a subsidiary of Mitsui Fudosan Co of Japan, to develop and sell Sunway Geo Residences at Sunway South Quay.

Sunway said the Sunway Geo Residences, a part of the Sunway Geo project, comprise 472 units of residential condominiums within two 30-storey blocks, and has a gross development value of about RM319 million.

"The development of the Sunway Geo Residences will be undertaken by the JV company, Prosper Revenue Sdn Bhd. It is scheduled to be launched in November 2013, and slated for completion in 2016," it said.

Joint Managing Director of Sunway Property, Sarena Cheah, said the JV would further boost the Sunway's brand in the Japanese market.

"It will leverage on Mitsui Fudosan’s strength and its database of 300,000 Japanese customers, to bring them into Sunway South Quay to expand the international community within the development," she said.