Stocks To Watch KEuro, Gamuda, Kanger, Bumi Armada, Hibiscus and Patimas

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 23 December 2013 20:07

KUALA LUMPUR (Dec 23): Based on corporate announcements today, the companies that may attract investor interest tomorrow include the following:

Kumpulan Europlus Bhd (KEuro) announced that it can now start concession work on the RM5.2 billion West Coast Expressway.

The company said that West Coast Expressway Sdn Bhd (WCESB), its 80% subsidiary, has today received a written confirmation from the Government of Malaysia that WCESB has complied with all the conditions precedent in respect of the concession agreement.

“With the confirmation of the effective date, WCESB can commence work for the project,” said KEuro in a filing with Bursa Malaysia. 

Earlier reports indicated that WCESB, the concessionaire in the RM5.2 billion road project linking Banting, Selangor, to Taiping, Perak, needed to increase its paid-up capital.

Recently, Thailand’s tycoon Tan Sri Surin Upatkoon had emerged as the controlling shareholder of Kumpulan Europlus with a 24.68 per cent stake.

Gamuda Bhd said it has today raised its offer price for Kesas Holding Bhd and announced the revised offers for three other parties holding interests in Kesas.

The construction and infrastructure company said it has made “new offers to the remaining shareholders of Kesas Holdings Berhad” who have not accepted its earlier offers.

Perbadanan Kemajuan Negeri Selangor (PKNS) and Permodalan Nasional Berhad (PNB) did not accept Gamuda’s earlier offer to acquire their equity interests in Kesas, but AmCorp Properties accepted.

Gamuda said its offer price for PKNS’ stake in Kesas is now raised to RM420 million and for PNB it is now placed at RM280 million. It added it has received an “acceptance in principle” from PNB with the new offer.

In line with the new offers, Gamuda said it has revised the purchase price for Amcorp’s stake to RM280 million from RM250 million.

Kanger International Bhd could continue to attract interest after its maiden listing today that saw 57.9 million shares done.

The China-based bamboo flooring manufacturer saw an opening price of 39 sen per share after fetching a 14 sen premium over its IPO price of 25 sen. It ended at 34.5 sen today after hitting a high of 41 sen.

The listing of the China-based firm was the first foreign listing for the ACE Market of the local bourse this year, according to Bursa Malaysia.

Kenanga Investment Bank has given a fair value of 27.5 sen to 36.5 sen for the stock, but believes that the share price performance could be greater as it had an oversubscription of 60.6 times.

Alliance Research, though did not give a specific target price but believes that there is limited upside on the stock, as its valuation seems expensive.

Bumi Armada Bhd announced it had via two wholly-owned subsidiaries signed two contracts worth RM4.6 billion (US$1.4 billion) for the Kraken field located in the UK sector of the North Sea.

In a press statement, the offshore oilfield services provider said its wholly-owned unit Armada Kraken Pte. Ltd. signed a bareboat charter contract with a consortium of companies on December 20 this year for a floating production, storage and offloading vessel (FPSO) to be deployed at the Kraken field.

“Both contracts will run simultaneously for a fixed period of eight years, valued at RM4.6 billion,” said Bumi Armada.

“It comes with options for 17 annual extensions with a significant upside when the options are fully exercised.”

Bumi Armada’s CEO Hassan Basma said the contract is expected to contribute positively to the revenue and earnings of the group for the financial year ending Dec 31, 2013 and the subsequent financial periods for the duration of the contracts.

Hibiscus Petroleum Bhd announced that it has suspended trading in its securities until 5.00 pm today, pending “the release of a material announcement”.

Early this month, Hibiscus said it had secured two production licences in Norway and Australia.

Hibiscus Petroleum is Malaysia's first listed independent exploration and production company.

At press time (7.00 pm), the company still has not announced its “material announcement”.

Patimas Computers Bhd (PCB) announced that Bursa Securities, has vide its letter dated today, decided to allow PCB’s appeal and granted an extension until 28 February 2013, to submit its regularisation plan to the relevant authorities for approval.

This means that this PN17 company will not face suspension and/or delisting before Feb 28.

But Bursa Securities will de-list the securities of the company if the company fails to submit its regularisation plan to the relevant authorities for approval within the extended timeframe.