Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 13 November 2013 20:17
KUALA LUMPUR (Nov 13): Based on news flow and announcements today, stocks that may stir tomorrow could include Haisan, AMMB, Perisai, B-Assets, Wing Tai, MAA, Hup Seng, Yeo’s, Caring and Encorp.
Haisan Resources Bhd may see the launch of a mandatory general offer (MGO) by Tengku Makram Tengku Ariff after the completion of its rights issue, if his stake exceeds 33%.
The right issue is part of the Practice Note 17 (PN17) firm's regularisation plan.
Haisan, an ice manufacturer, said Tengku Makram "no longer intends to seek an exemption" from having to extend an MGO to acquire the remaining stake in Haisan not already owned by him.
"Pursuant thereto, the proposed exemption will not form part of the proposed regularisation plan," said Haisan, which has been placed under the Bursa Malaysia's PN 17 category since June 9, 2010.
AMMB Holdings Bhd has brought forward the release of its second quarter results, after it clarified it had a gross exposure of about RM120 million relating to three counters listed on SGX of Singapore.
The group said it had provided RM40 million on the exposure. It may be interesting to see how this provision will affect its second quarter earnings and whether there will be more provisions needed.
But for the moment, the guided amount of RM120 million is significantly lower than the speculated amount of RM384.6 million.
The company will be holding a press conference on its results tomorrow. It is expected to talk about the provision and the dent caused to its earnings.
Perisai Petroleum Teknologi Bhd’s profit increased by 12.9% year on year for the third quarter financial year ended Sept 30, 2013 (3QFY13).
The group’s net profit increased to RM23.4 million for 3QFY13 from RM20.7 million in the same corresponding period last year.
The increase in profit was on the back of higher revenue of RM34.1 million, which was up by 4.8% against RM32.6 million in previous year’s similar quarter.
The increase in revenue was mainly due to higher foreign currency conversion for the current financial quarter under review, the company said.
However, for the nine months period, the group’s profit fell to RM71.2 million, from RM82.6 million in the same period last year. Revenue climbed to RM97.8 million, from RM96.5 million.
Berjaya Assets Bhd’s net profit fell 26% year-on-year (y-o-y) to RM17 million in the first quarter ended Sept 30, 2013, from RM23 million a year ago.
However, revenue rose 24% y-o-y to RM101 million from RM81 million.
The firm blamed the lower profit to lower gain registered on disposal of investment properties as compared to the previous corresponding quarter.
Meanwhile, the firm attributed the larger revenue to the increase in revenue reported by the property development and investment and the hotel and related business segments under BTSSB.
Wing Tai Malaysia Bhd saw a 14% fall in net profit to RM15.7 million in the first quarter ended September 30, 2013 (1QFY13) from the previous corresponding quarter’s net profit of RM18.3 million.
Wing Tai, a property developer, said revenue decreased 20% to RM82.3 million in 1QFY13 from RM102.7 million. The fall in revenue was attributed to lower revenue from the property development division.
Despite the lower profit, Wing Tai announced a five sen a share final dividend and a five sen special payout. This brings total dividends to 10 sen a share.
Wing Tai said it remains positive on its outlook for the remainder of the financial year.
MAA Group Bhd (MAA) is selling its entire stake in 55%-owned fund management subsidiary MAAKL Mutual Bhd for RM53.06 million.
MAAG said the buyer is Manulife Holdings Bhd which intends to acquire 100% of MAAKL from other shareholders of the MAAKL. The proposed deal values the entire stake in MAAKL at RM96.48 million.
MAAG said: "The proposed disposal represents an excellent opportunity for the MAAG to unlock the value and realise its investment in MAAKL Mutual at a more than satisfactory price.
Hup Seng Industries Bhd’s net profit rose 12% year-on-year (y-o-y) to RM7.8 million in the third quarter ended Sept 30, 2013, from RM6.9 million a year ago.
Revenue also increased 3% y-o-y to RM59 million from RM57 million.
The biscuit, confectionery and foodstuff manufacturer said its profit rise was due to higher sales recorded.
For the nine-month period, the firm posted profit of RM27 million, from RM24 million, while revenue raked in RM184.7 million against RM184.6 million in the previous corresponding period.
Yeo Hiap Seng (Malaysia) Bhd (Yeo's) estimates a 13 per cent growth in revenue for its 2014 financial year results, boosted by the expansion of its product line and continuous marketing efforts, Bernama reported.
For the financial year ended Dec 31, 2012, Yeo's revenue rose by 13 per cent to RM601 million from RM533 million recorded in 2011.
Chief Operating Officer Ong Chay Seng said the company had invested a total of RM200 million since 2011 for its expansion programme while allocating around seven to 10 per cent annually from the revenue for advertising and promotion.
He also expects more than RM50 million revenue contribution yearly from the company's latest product line using aseptic cold fill PET (polyethylene terephthalate) technology, a processing and packaging process that can deliver the highest quality products withhigher nutritional value, better taste and freshness.
Caring Pharmacy Group Bhd (CPGB), which made strong trading debut on the main market of Bursa Malaysia today, expects to post double-digit growth for the next few years due to its current expansion plan.
At the listing ceremony today, Caring’s managing director Chong Yeow Siang said the opening of more new pharmacy outlets is in the pipeline.
"We expect double-digit growth as we have been achieving this for the past 19 years," Chong said at a press conference after the listing of Caring.
Caring recorded a net profit of RM20.5 million for the financial year ending May 2013 (FY13), up by 12.5% from RM18.3 million for FY12. Revenue rose 21.4% to RM301.4 million from RM248.3 million.
At market close, Caring rose 59 sen or 46% to RM1.83, from its IPO price of RM1.25 per share.
Encorp Bhd posted a net profit of RM8.0 for the third quarter to end-September 2013, compared a loss of RM2.7 million in similar quarter of 2012, on the back of higher revenue for the quarter under review.
Revenue jumped to RM168.6 million, compared to RM83.4 million, due mainly to higher sales and progress work achieved by its property division.
For the nine months to September 2013, Encorp posted a net profit of RM14.4 million, a turnaround from a loss of RM7.8 million a year ago. Revenue increased sharply to RM402.3 million, from RM226.8 million.
The company said in a press release: “The significantly better results in the three months ended September 2013 was largely attributed to the encouraging sales and the progress of work from its property development projects, e.g. Encorp Marina Puteri Harbour which saw impressive take-up just hours into its sales launch.”