Stocks To Watch WZ Satu, Fitters, Sime Darby, Jobstreet, B.Assets, Bursa, Seacera, plantations


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Friday, 10 January 2014 20:35

KUALA LUMPUR (Jan 10): Based on official and corporate announcements today, the companies and stocks that may spark some interest on Monday (Jan 13) include the following:

WZ SATU Bhd announced three proposals that will see the company issue a renounceable rights issue, purchase of a construction and engineering company and entry into the bauxite mining.

The first proposal entails the issue of a  renounceable rights issue of up to 55 million new ordinary shares of RM0.50 each in WZ SATU at an issue price of RM0.60 per rights share, on the basis of one rights share for every two existing WZ SATU Shares held.

The second proposal involves the acquisition of KenKeong Sdn Bhd for RM27.5 million, which would result in a diversification in the operations of WZ SATU into civil engineering and construction.

The third proposal is the entering into a bauxite mining works agreement by SE Satu Sdn Bhd, a 49%-owned company of WZ SATU, with Kreatif Selaras Mining Sdn Bhd for SE Satu to be engaged as a contractor to mine, extract and produce bauxite ore.

Fitters Diversified Bhd plans to list its wholly-owned renewable energy unit Future NRG Sdn Bhd (FNRG) on the Singapore stock exchange's Catalist, the sponsor-supervised board of the bourse.

Fitters said FNRG has appointed Singapore-based PrimePartners Corporate Finance Pte Ltd as full sponsor for the proposed listing of FNRG.

PrimePartners will remain as the continuing sponsor for FNRG upon completion of the exercise.

But the company said: "There is no assurance that official approvals or clearance would be obtained or that the proposed listing may occur. Therefore, investors should note that the listing of FNRG’s shares on Catalist may or may not occur."

Sime Darby Bhd said its plantation arm Sime Darby Plantation Sdn Bhd has achieved its first RSPO certification for smallholders under Indonesian subsidiary, PT Minamas Gemilang.

The achievement was one year ahead of the mid-2014 target set for PT Minamas smallholders to be RSPO (Roundtable of Sustainable Palm Oil) certified. 
As a result of the RSPO certification, PT Minamas’s three mills have now achieved segregated status under the RSPO Supply Chain Certification System (SCCS).

This has raised the number of PT Minamas’ segregated status mills to 17 out of a total 21 RSPO certified mills.

The certification will give Sime Darby the advantage of gaining further access to the international sustainable palm oil market, the diversified conglomerate said.

Jobstreet Corporation Berhad (JCB), a leading online recruitment services provider, announced its acquisition of the remaining 19% interest in JS Vietnam Holdings Pte Ltd (JSV).  

JCB said it has acquired the 19% stake with a cash consideration of RM1,195,838, to be satisfied via the issuance of 522,000 ordinary shares each in JCB.

The rationale for the proposed acquisition is “to strengthen JCB’s presence in Vietnam’s online recruitment market.”

The proposed acquisition is expected to be completed in the first quarter of 2014.

Berjaya Assets Bhd and its unit Berjaya Times Square  clarified that “there is no truth to the speculation regarding the possibility of the company being given the right to operate a gaming establishment akin to a casino in the State of Johor”.

This statement came after the Menteri Besar of Johor said casino operations similar to Singapore will not be allowed in the State of Johor.

Bursa Malaysia Bhd may come under investors’ radar after Insider Asia’s upbeat report on the stock exchange this week and its earnings.

Bursa is set to announce its earnings results for the last quarter of the financial year ended December 2013 on January 29.

“We expect earnings in 4Q13 to be slightly better than that in 3Q13. Average daily value traded improved to RM2.3 billion during the quarter, up from RM2.08 billion in 3Q13 and RM2.07 billion in 9M13. The number of derivatives contracts traded in 4Q13 is also likely to have grown further,” commented Insider Asia.

“We forecast net profit for 2013 at roughly RM189.6 million, up some 25% from the previous year.”

Bursa’s turnover in the first nine months of 2013 grew 12% y-y to RM361 million, while net profit expanded by 20% to RM139 million over the same period, driven by securities and derivatives trading activities.

Seacera Group Bhd is buying a 60% stake in a privately-owned builder with some RM168 million worth of local projects in hand. The planned acquisition marks Seacera's foray in the construction sector.

Seacera, which manufactures tiles and develop properties, said it is subscribing for shares in SPAZ Sdn Bhd's expanded issued base for RM3 million. 

Seacera said the move offers the "opportunity for the company to diversify and leverage on its expertise in trading of tiles and general construction building materials".

SPAZ has been in the construction industry for more than 10 years.

Plantation stocks may come under focus after investors digest and analyse the latest official data of palm oil over the weekend.

The crude palm oil futures market fell across the board today after the figures were released this afternoon. The benchmark March futures fell RM20 to close at RM2,519 per tonne.  

Malaysian palm oil inventory rose 0.33% to 1.99 million tonnes in December 2013 from 1.98 million tonnes in November, said the Malaysian Palm Oil Board (MPOB).

MPOB said CPO output fell 10.43% to 1.67 million tonnes from 1.86 million tonnes, while  palm oil exports declined 1.36% to 1.51 million tonnes from 1.53 million tonnes.