Stocks To Watch Westports, Mah Sing, Salcon, Scientex, Seacera, Huat Lai, Scomi, Hektar REIT

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 11 November 2013 20:29

Westports Holdings Bhd’s net profit rose19% year-on-year (y-o-y) to RM106 million in the third quarter ended Sept 30, 2013, from RM89 million a year ago.

Revenue also increased 19% y-o-y to RM460 million from RM385 million.

In a statement to Bursa Malaysia, the port operator attributed the improved profit to increase in container throughput and savings of the management fee arising from termination of management services agreement.

Cumulatively for the nine months to Sept 30, it recorded profit of RM304 million, up from RM249 million a year ago. Revenue rose to RM1.210 billion from RM1.015 billion a year earlier.

“Going forward, we anticipate container throughput to remain strong in the last quarter of this year, barring any unforeseen circumstances,” said Westports.

Mah Sing Group Bhd’s net profit soared 28% year-on-year (y-o-y) to RM71 million in the third quarter ended Sept 30, 2013, from RM55 million a year ago.

Its 3Q revenue also jumped 27% y-o-y to RM536 million from RM421 million.

The mainly-property conglomerate said cumulative profit for nine months registered RM210 million from RM175 million, while revenue totalled RM1.4 billion versus RM1.3 billion in the previous corresponding period.

Mah Sing’s third quarter results won positive comments and analysis from many analysts today.

Mah Sing said it is well placed to achieve a good performance for the current financial year.

Salcon Bhd plans to earmark up to RM30 million as special dividend or capital repayment for shareholders.

This RM30 million will come from the proceeds of its planned disposal of six foreign operating units in China.

The proposed distribution is conditional upon the completion of the proposed disposals and subject to obtaining all the requisite approvals, Salcon said.

Salcon, a water engineering company, said any excess after the proposed distribution will be allocated for working capital of the group.

Scientex Bhd, a packaging manufacturer and property developer, announced that it is buying a consumer packaging company for RM40 million.

Scientex said, through its wholly-owned unit Scientex Packaging Film Sdn Bhd, it entered into a share sale agreement with Seacera Polymer and Seacera Group Bhd for the acquisition today.

The purchase of Seacera Polyfilms Sdn Bhd is “a strategic fit to widen range of films used in flexible plastic packaging,” said Scientex in a press release.

Seacera Polyfilms is said to be a major producer of biaxially-oriented polypropylene (BOPP) films in the foodstuff packaging industry. It is a wholly-owned subsidiary of listed Seacera Group Bhd.

Scentex said it wants to capture a larger market share of the fast-growing consumer packaging industry.

Seacera Group Bhd has proposed a one-for-three bonus issue, distribution of free warrants and increase of share capital today after announcing the sale of a subsidiary for RM40 million.

In a filing to Bursa Malaysia, Seacera said it has signed an agreement to sell Seacera Polyfilms Sdn Bhd to Scientex Bhd for RM40 million.

The tiles and BOPP film manufacturer said the proceeds from the sale will be used for repayment of advances and borrowing, future investment, working capital and expenses relating the various proposals.

On the proposed bonus issue, Seacera said this will entail an issuance of up to 42,650,847 bonus shares on the basis of one (1) bonus share for every three (3) existing Seacera Shares held by shareholders.

But this proposed bonus issue will be implemented concurrently with the proposed free warrants issue.

The proposed free warrants issue will entail an issuance of up to 42,650,847 new warrants on the basis of one (1) free warrant for every three (3) existing Seacera shares held by the shareholders of Seacera.

In addition, the company has also proposed to increase in its authorised share capital to RM500 million from RM200 million.

Huat Lai Resources Bhd reported RM11.23 million in net profit for the third quarter ended Sept 30, 2013 (3QFY13), from a net loss of RM10.34 million in similar quarter a year earlier.

Huat Lai, a poultry firm, said the profit came on higher revenue of RM248.37 million compared to RM180.09 million.

"The better pretax profit is due to higher selling prices of poultry products and higher sales," Huat Lai said.

Cumulative 9MFY13 net profit came to RM14.94 million versus a net loss of RM17.58 million a year earlier. Revenue rose to RM673.28 million from RM502.76 million.

The company plans to pay an interim tax-exempt dividend of four sen a share during 3QFY13.

Looking ahead, Huat Lai expects the poultry sector to remain stable. "So far there is no unexpected news on the economy as a whole," the firm said.

Scomi Group Bhd announecd that Tan Sri Abu Sahid Mohamed, one of its substantial shareholders, has raised his stake in the company.

In the three trading days on Nov 4, Nov 6 and Nov 8, Abu Sahid had bought shares totalling 2.25 million from the open market. This has raised his stake in Scomi Group to 7.36%.

Hektar Real Estate Investment Trust (REIT) reported a year-on-year increase of 12% in its third quarter net profit as revenue rose.

Hektar REIT said net profit came to RM11.1 million in third quarter ended September 30, 2013 (3QFY13) from RM9.9 million in 3QFY12. 

Revenue rose 18% to RM30.1 million from RM25.4 million.

For the nine-month period (9MFY13), Hektar REIT made a net profit of RM33 million from RM29 million a year ago. Revenue for 9MFY13 saw a 21% increase to RM90 million, from the RM74 million a year earlier.

Hektar REIT plans to pay a dividend of 2.6 sen a share for 3QFY13. Payment will be made on Dec 12.