Stocks To Watch XOX, P.I.E, Boilermech, CSC, KSTB, AirAsia X, Supermax

Business & Markets 2013
Written by Ho Wah Foon of   
Friday, 08 November 2013 20:17

KUALA LUMPUR (Nov 8): XOX may recoup some losses in active trades while Boilermech and AirAsia X might lead the charge on Monday, following their announcements to Bursa Malaysia.

The other interesting stocks to watch on Monday (Nov 11) might include CSC, KSTB, P.I.E and Supermax.

XOX Bhd will not see trading of its shares being suspended on Monday as it has beat Bursa’s deadline by submitting its audited accounts today.

“Kindly be advised that XOX has on 8 November 2013 submitted its outstanding annual audited accounts for financial year ended 30 June 2013 to Bursa Malaysia Securities Bhd.

“In view of the above, kindly be advised that there will be no suspension of trading in the above company's shares,” said a statement from Bursa Malaysia on XOX trading.

Earlier today, Bursa had warned that XOX would be suspended from trading on Monday if it failed to submit its annual audited accounts for the financial year ended 30 June 2013 today.

XOX share, which had been hit by this development, closed flat at 10.5 sen per unit today after hitting a low of 9.5 sen and a high of 11 sen.

P.I.E. Industrial Bhd’s net profit increased by 62% to RM10.5 million in its third quarter to Sept 30, 2013, from RM6.5 million in the preceding year similar quarter.

Its 3Q revenue had also increased by 37% to RM116.4 million from the previous year’s RM84.7 million.

Cumulatively, the profit for 9MFY13 had seen an increase of 24% to RM25.6 million, from RM20.6 million in 9MFY12.

The higher revenue recorded for 3Q was attributed to higher revenue from electronic manufacturing activities due to increased demand.

Favourable foreign exchange rates had helped to push up profits.

“With further support by the group’s continuous upgrading of its vertical integration capability and strengthening of precision manufacturing, we are optimistic to achieve satisfactory performance in coming quarters,” said P.I.E. Industrial.

P.I.E. Industrial’s share closed at RM5.91, down 4 sen.

Boilermech Holding Bhd has proposed a one-for-one bonus issue and transfer of its listing to the main market of Bursa Malaysia.

Its share shot up as much as 21% after the announcement.

It closed at RM2.39, up 31 sen or 15%, after hitting a high of RM2.52.

The company has also proposed to increase its authorised share capital to RM100 million.

CSC Steel Holdings Bhd’s net profit plunged 53% year-on-year to RM2.9 million in the third quarter ended Sept 30, 2013, from RM6.2 million a year ago.

Its revenue also fell 16% y-o-y to RM257 million from RM307 million.

The steel manufacturer blamed higher distribution expenses as a result of greater export volume and the weakened ringgit caused by a downgrade by Fitch Rating on Malaysia.

CSC Steel said the revenue decline was primarily due to the significant reduction in sales volume of steel products and significant drop in their selling prices.

However, its nine-month net profit was higher at RM28 million, compared with RM22 million, while revenue was RM859 million versus RM857 million in the previous corresponding period.

“In terms of 4Q prospects, it will be similar to the previous one if there is no significant change in the steel market in the near future,” said CSC Steel. “The group is faced with thin margin in this competitive market.”

Kejuruteraan Samudra Timur Bhd (KSTB) has bagged a contract from Petronas Carigali Sdn Bhd (PCSB).

The group said the work involves the provision of tubular handling equipment and services for shallow water in West Malaysia operations.

The contract commenced on Oct 30 and will be valid until Oct 29, 2018.

“The contract is expected to contribute positively to the earnings and earnings per share of the group for the financial year ending June 30, 2014,” it said.

AirAsia X Bhd (AAX) said its traffic volume and other operating data were impressive for the third quarter of this year.

The long-haul, low fare airline unit of AirAsia Group said it achieved a traffic volume of 4.2 billion Revenue-Passenger-KMs (RPKs), representing a 30% rise year-on-year.

“The improved performance was boosted by higher capacity of 5.1 billion (+32% y-o-y) Available-Seat-KMs (ASKs) with a passenger load factor of above 80%,” said AAX in a statement.

The total number of passengers carried for 3Q13 was 0.8 million, an increase of 32% y-o-y as compared to 2Q12, with North Asia and Australian routes being the key growth sectors.

Cargo operations saw the carrying of 8,079 tonnes of freight with 46% load factor level during 3Q13.

Guiness Anchor Bhd’s (GAB’s) net profit fell by 12.7% year on year for the first quarter ended Sept 30, 2013 (1Q13) to RM49.6 million from RM 56.8 million in the same quarter the previous year.

Revenue decreased by 16.9% year on year to RM325.8 million, from RM392.3 million.

The brewery said lower revenue was mainly due to a planned reduction in distributor stocks and softer consumer spending amidst economic uncertainty.

In a statement, managing director of GAB Hans Essaadi said the group’s net profit fell due to “increased commercial investment”.

“We continue to operate in a challenging environment. The market is soft as consumer demand has been dampened by the rise of fuel prices and inflation rate over the past quarter,” he added.

Looking forward, the group said it will continue to invest in marketing initiatives.

Supermax Corp Bhd has proposed to purchase an estimated 40ha vacant industrial land in Serendah, Selangor for RM78.4 million from Dragonline Resources Sdn Bhd.

The rubber glove maker said the purchase of the freehold tract is to expand its nitrile glove output aggressively to meet growing demand.

Supermax plans to utilise 60% of the land for capacity expansion of its nitrile medical and dental examination gloves. The firm also intends to increase its nitrile surgical glove output.

According to the company, the balance of the land will be allocated for glove supporting industries. These include chemical, printing and packaging suppliers besides engineering and automation companies. 

Supermax said the tract is near its headquarters in Sungai Buloh. Hence, this will reduce travelling and logistics cost as the tract is near to Port Klang.