Stocks To Watch Maybank, Lion Corp, Digi, Alam Maritim, NCB, Mudajaya, iCapital, AHB

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 28 October 2013 19:31

KUALA LUMPUR (Oct 28): Based on corporate announcements today, stocks that may attract interest tomorrow could include Maybank, Lion Corp, Digi, Alam Maritim, NCB, Mudajaya, icapital and AHB.

Malayan Banking Bhd (Maybank) said its Indonesian subsidiary, PT Bank Internasional Indonesia Tbk (BII), posted a profit after tax and minority interest (PATAMI) of Rp1.1 trillion for the nine months ended 30 September 2013, a 19% increase from the same period a year earlier.

“This is the first time it has passed the Rp 1 trillion mark for a nine months period. The BII’s profit before tax increased by 22% to Rp1.6 trillion, compared to Rp1.3 trillion in the previous corresponding period,” said Maybank in a press statement.

The improved performance of BII was achieved on the back of growth across its core businesses, strong deposit growth, significant profitability improvement of the bank’s subsidiaries, and continuing overall operational improvements, it added. 

Lion Corporation Bhd, controlled by prominent businessman Tan Sri William Cheng, announced that it has become a PN17 company today due to doubts over its ability to carry on as an on-going concern.

The requirement of the Practice Note 17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad has been triggered after its auditors have cast doubts on LCB and its subsidiaries’ ability to continue as a going concern.

“The shareholders’ equity of LCB on a consolidated basis as at 30 June 2013 is less than 50% of the issued and paid-up capital of the company,” Lion Corp said.

Chartered accounts Ong Boon Bah & Co said under its “emphasis of matter” that LCB’s current liabilities had exceeded current assets by RM1.9 billion as of June 2013.

Lion Corporation has within 12 months from the date of this announcement to submit a regularisation plan to the Securities Commissions/Bursa Malaysia.

DiGi.Com Bhd reported a 42% rise in third quarter net profit from a year earlier on higher revenue and lower depreciation and amortisation.

The mobile telecommunication network provider's net profit rose to RM448.71 million in the quarter ended September 30, 2013 (3QFY13) from RM315.37 million. Revenue climbed to RM1.7 billion from RM1.58 billion.

Cumulative 9MFY13 net profit was higher at RM1.16 bllion versus RM960.19 million a year earlier. Revenue increased to RM5 billion from RM4.73 billion.

DiGi plans to pay a tax-free dividend of 5.7 sen a share for the quarter in review.

Looking ahead, DiGi said 4QFY13 will be "exciting and challenging" for the firm. This is due to the completion of the group's network modernisation and its abilty to secure a higher 3G population coverage to compete in the market."

DiGi said it is confident on revenue and profit growth on higher contribution from the mobile Internet segment and better operational efficiency.

Alam Maritim Resources Bhd announced that it has via its wholly owned subsidiary been recently awarded a vessel contract worth RM37.9 million.

The oil and gas support services provider said Alam Maritim (M) Sdn Bhd has secured the contract for the provision of one unit straight supply vessel for an established oil and gas company.

“The contract is expected to contribute positively to the earnings and net assets of the group for the financial year ending Dec 31, 2013 up to 2017,” said Alam Maritim.

It added the contract is for three years with an extension option for another one year.

NCB Holdings Bhd’s net profit slumped 66% year-on-year (y-o-y) to RM27 million in the third quarter ended Sept 30, 2013.

Its 3Q group revenue fell 13% y-o-y to RM224 million from RM253 million.

The transport and logistics provider attributed the fall in net profit to its logistics subsidiary, Kontena Nasional, as recording a loss before taxation of RM5.6 million.

NCB blamed the drop in revenue to its port operations, which had lower container throughput handled by Northport. It also singled out its logistics operations for lower business activity and cost control measures.

Cumulatively, net profit contracted y-o-y to RM57 million from RM133 million while revenue slipped to RM690 million from RM757 million in the previous corresponding quarter.

Mudajaya Group Bhd has gained access to Philippines’ wind energy industry via its wholly owned unit, which has purchased a stake in Philippines’ Amihan Energy Corporation (AEC).

Mudajaya announced that it has via Mudajaya Power International Sdn Bhd (MPI) entered into a share purchase agreement with Windelsey Inc to acquire 4,000 shares of capital stock in AEC, for a cash consideration of Php26.4 million (RM1.9 million).

Mudajaya said the acquisition resulted in AEC becoming a 40% owned associate of MPI.

AEC has been given the exclusive right for 25 years to explore, develop and utilise the wind energy resources within the designated contract area of 18,255 hectares situated in the province of Cebu, Philippines. Bhd said it will not repeat the previous dividend payout for the financial year ending May 2014.

It said it will not repeat what it did for its previous financial year, where it paid out dividend for the first time since it first floated its shares on Bursa Malaysia in October 2005.

Speaking to the media today, managing director and fund manager Tan Teng Boo said the special dividend in FY13 was to utilise the fund’s section 108 tax credit balances.

In August of this year, proposed a special dividend of 9.5 sen less income tax of 25% per share for its FY13, the first time it did so.

In a statement to Bursa Malaysia, the company said its first quarter net profit to end-August 2013 had fallen by over 50% to RM1.2 million, from RM2.6 million a year ago. Revenue had also fallen to RM3.4 million, from RM5.2 million.

AHB Holdings Bhd may come under scrutiny after Mirzan Mahathir, a son of former Prime Minister Tun Dr Mahathir Mohamad, has sold off all his shares in the company.

Mirzan, who was a substantial shareholder of AHB, ceased to be a substantial shareholder of AHB after disposing his 6.85% stake via direct business transactions, AHB told Bursa Malaysia today.

He has indirect holding of 3,294,720 shares via his deemed interest in Iskandar Holdings Sdn Bhd. The shares were disposed at 15 sen each.

Mirzan, the chairman of AHB, has been on the board of AHB since March 13, 1996.

In a separate announcement, Dexx Technologies Sdn Bhd today emerged to become a substantial shareholder of AHB after acquiring a 19.43% stake.

The firm bought 9,352,282 shares at 20 sen each, via direct business transaction deals.