Stocks To Watch Kian Joo, IHH, E&O, IJM Group, Hong Leong Bank, Dayang, Hap Seng, Barakah, Fima


Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com   
Tuesday, 26 November 2013 20:50

KUALA LUMPUR (Nov 26): Based on corporate announcements today, the stocks to watch on Wednesday (Nov 27) could include the following:

Kian Joo Can Factory Bhd announced that it has received an offer from Aspire Insight Sdn Bhd to buy over its entire business, assets and liabilities for RM1.465 billion or RM3.30 per share.

The RM3.30 offer is higher than the net asset per share of Kian Joo, at RM2.29 as at end-September 2013.

The offer, displayed by Kian Joo, states that Aspire Insight’s shareholders are Equiti Merdu Sdn Bhd and Alleyways Sdn Bhd. Alleyways is majority-owned by Chee Khay Leong, who resigned yesterday as chief operating officer of Can-One Bhd.

Can-One owns 32.9% of shares in Kian Joo, its competitor in the can making business. The Edge Financial Daily, quoting sources, reported today that the EPF and Can-One are joining hands to take over assets of Kian Joo and Box Pak (Malaysia) Bhd. Kian Joo owns 54.83% of Box-Pak, a maker of corrugated boxes.

IHH Healthcare Bhd reported a 61% increase in third quarter net profit from a year earlier. This came on revenue growth at its existing hospitals globally.

IHH told Bursa Malaysia today that net profit rose to RM117.03 million in the third quarter ended September 30, 2013 (3QFY13) from RM72.62 million. Revenue rose to RM1.67 billion from RM1.48 billion.

Cumulative nine-month net profit however fell to RM401.06 million from RM594.29 million a year earlier. Revenue was lower at RM4.98 billion versus RM5.43 billion.

Looking ahead, IHH expects higher staff and operating cost, besides costlier rentals to curb the group's profitability. IHH is also mindful of foreign exchange risk, as it operates hospitals globally.



Eastern & Oriental Bhd posted net profit of RM16.5 million for its second quarter ended 30 September 2013, a sharp fall from RM34.9 million in the previous corresponding quarter.

Revenue had also decreased to RM74.7 million in 2QFY13 from RM156.7 million in 2QFY12.

For the nine months to September 2013, net profit fell to RM44 million from RM65 million in the previous corresponding quarter. Revenue for 9MFY13 fell to RM170 million from RM296 million in 9MFY12.

IJM Corporation Bhd reported a slightly higher net profit for the second quarter ended Sept 30, 2013 (2QFY13), rising 2.2% year on year.

The group’s net profit for the second quarter increased to RM140.30 million, from RM137.26 million in the second quarter of the previous financial year. But its revenue rose strongly to RM1.41 billion from RM1.14 billion.

The company declared a single-tier first interim dividend of four sen for the quarter under review.

IJM Land Bhd’s profit for the second quarter ended Sept 30 (2QFY13) soared 103.5% year on year due to higher property sales and increase in profit margin from its on-going projects.

The property developer reported a net profit of RM91.6 million for 2QFY13 as compared to RM45 million a year ago. Revenue also jumped to RM426.2 million from RM267.6 million in previous similar quarter.

For the six months to September, the group’s profit jumped to RM173.3 million from RM96.1 million year-on-year (y-o-y). Its revenue rose 886.2 million from RM518.9 million previously.

IJM Land said it has unbilled property sales in hand of about RM1.3 billion.

IJM Plantations Bhd’s net profit plunged 93% year-on-year (y-o-y) to RM3 million in the second quarter ended Sept 30, 2013, from RM41 million a year ago.

But revenue rose 13% y-o-y to RM149 million from RM131 million.

The oil palm agribusiness company said the plunge in profit was due to the reduction in closing inventories and the strengthening of the US dollar against the rupiah in Q2 FY14.

For the half-year period to September 2013, profit earned was RM6 million while revenue generated was RM284 million.

IJM Plantations said its financial performance was severely impacted by the unrealised foreign exchange losses, in addition to the start-up yields in the Indonesian operations.

Hong Leong Financial Group Berhad (HLFG) announced it had achieved a net profit of RM430.2 million for the first quarter in the current financial year (1Q14), up by 24% year on year (y-o-y).

The major financial group announced its first interim dividend of 13 sen per share, similar to a year ago.

Revenue for the quarter to September 2013 rose to RM1.17 billion from RM1.08 billion in similar quarter of the previous financial year.

“The growth in earnings was contributed by all of our three core businesses of commercial banking, insurance and investment banking,” said the group.

Hong Leong Bank Bhd reported a 14% rise in first quarter net profit from a year earlier. Growth came on higher interest income, lower allowance for bad loans, and write-back of securities' impairment losses.

Hong Leong Bank said net profit rose to RM544.49 million in the first quarter ended September 30, 2013 (1QFY14) from RM477.63 million. Revenue was higher at RM1.03 billion versus RM1 billion.

Looking ahead, the group said it will expand its regional operations while "seeking organic transformational growth opportunities".

Hong Leong Bank's 1QFY14 financial results were above consensus, according to Alliance Research.

Hong Leong Capital Berhad’s net profit for the first quarter ended September 30, 2013, rose 198% year on year to RM24.3 million, from RM8.2 million in similar quarter of the last financial year.

The company attributed this to higher contribution from its major operating segments in investment banking and stockbroking segments.

Revenue for the quarter rose to RM56.2 million, from RM 54.2 million in similar quarter a year ago.

Dayang Enterprise Holdings Bhd’s net profit fell 23% year-on-year (y-o-y) to RM32 million in the third quarter ended Sept 30, 2013, from RM41 million a year ago. But revenue rose 35% y-o-y to RM171 million.

The oil and gas service provider said the lower profit was due to mobilisation costs incurred in the execution of the PAN HUC contracts as compared to the previous corresponding quarter.

For the nine-month period, profit chalked up RM126 million while revenue raked in was RM371 million.

“The directors remain positive of the group’s prospects for the remaining quarter of the year as we have on-going contracts of above RM4 billion to last at least until 2018,” said Dayang.

Hap Seng Plantations Holdings Bhd posted a net profit of RM30 million for the third quarter, down 15% year on year. Revenue fell to RM115 million from RM149 million in 3QFY12.

The net profit for the nine months to September 2013 plunged to RM58 million from RM110 million in the previous corresponding period. Revenue for 9MFY13 also fell to RM301 million from RM391 million in 9MFY12.

The group cited the lower average selling price of crude palm oil (CPO) and palm kernel (PK) as reasons for the decrease in revenue for the third quarter.

Looking forward, the group expects its performance to be “satisfactory” for the balance of FY2013.

Barakah Offshore Petroleum Bhd reported lower 4Q profit, which declined by 24% year on year for the fourth quarter ended Sept 30 (4QFY13).

The group’s profit fell to RM10.6 million for the quarter under review. But its revenue jumped to RM87.1 million from RM51.2 million previously.

For the full-year, the group’s profit rose to RM41.1 million from RM33.2 million a year ago. The group’s revenue rose to RM299 million from RM202 million.

Looking forward, the group is optimistic that it will enjoy positive growth as its order book valued at RM756 million will last for the next five years.

Fima Corporation Berhad’s net profit for the second quarter ended September 2013 rose to RM19.1 million, from RM17.6 million in previous similar quarter.

But revenue for the quarter under review fell to RM82.5 million, from RM83.7 million.

The company has declared a dividend of 15 sen per share.

For the cumulative 6 months, profits fell to RM33.1 million from RM35.2 million in similar period of the last financial year. Cumulative revenue for six months rose to RM158.6 million from RM156.6 million.