Stocks To Watch Golsta, Carlsberg, Ho Hup, AirAsia, Maica, Genting Plant, Formosa

Business & Markets 2014
Written by Ho Wah Foon of   
Friday, 21 February 2014 20:14

KUALA LUMPUR (Feb 21): Based on corporate announcements and results up to 7.30 pm today, the following companies may come under focus on Monday (Feb 24):

Golsta Synergy Bhd said it had received a notice from GS Capital Sdn Bhd to undertake a conditional mandatory take-over offer to acquire all the remaining shares of RM1.00 each in Golsta not already held by the offeror at an offer price of RM2.10 per share.

Journalist-turn-businessman Tan Sri Clement Hii announced he had acquired 16.95 million shares or a total of 36.69% stake in Golsta Synergy Bhd today.

Earlier in the day Hii bought 12.6 million shares or 27.27% stake, but subsequently he and his son bought more shares from three company directors.

Golsta is an investment holding company which engages in designing, fabrication and installation of industrial machines. It has operations in the cultivation and marketing of oil palm seeds and seedlings.

The company's shares rose from RM2.00 after the noon news. At market close, it ended at RM2.48 per share after rising 48 sen or 24%.

Carlsberg Brewery Malaysia Bhd's net profit rose 58% year-on-year to RM64.04 million for its fourth quarter ended 31 December 2013, from RM40.47 million in similar quarter a year ago.

The company said its fourth quarter revenue rose by 15% to RM387.74 million, from RM336.49 million a year ago.

The group announced a final dividend of 56 sen per share.

However, net profit for the full year declined to RM183.93 million, from RM191.63 million in the previous year. Cumulative revenue also fell to RM1.555 billion from RM1.585 billion.

Carlsberg's share closed flat at RM12.70 today.

Ho Hup Construction Co Bhd has been awarded a contract to rehabilitate roads, infrastructure and utility services in Iraq. The total sum of the contract is about US$58 million (RM191.11 million).

Ho Hup said in an announcement today that the contract was awarded by the Commission of Construction Wassit Province in Iraq. The contract is expected to stretch over three and a half years and be completed in June 2017.

Ho Hup said the project is not expected to have any material impact to its financials for the year ending December 2014, but is expected to contribute positively to the future earnings of the company. 

Ho Hup's share closed one sen down at RM1.50.

AirAsia Bhd's unit in India, AirAsia India, seems to continuously face "roadblocks" in taking to the skies in India, with the latest being calls from India's private airlines wanting the authorities to block the entry of the frills-free budget carrier, Bernama reported.

India's airlines Jet Airways, GoAir, Indigo and SpiceJet, are said to be against AirAsia's entry into India.

They are said to have opposed issuance of flying licence for AirAsia India, India's media reported, quoting an unnamed source from the Director-General of Civil Aviation (DGCA).

AirAsia India, a 49:30:21 joint venture between AirAsia, Tata Sons and Arun Bhatia of Telestra Tradeplace, was launched in February last year.

At market close, AirAsia ended one sen down at RM2.35.

Malaysia Aica (Maica)'s shares may come under pressure after AmInvestment Bank Bhd said it deemed TER Equity Sdn Bhd's proposed takeover offer for Malaysia Aica to be "not fair and not reasonable".

In a circular to shareholders today, independent advisor AmInvest told shareholders not to accept the offer by TER Equity at 85 sen a share as it deemed the offer as "not fair" and "not reasonable".

"The offer price represents a discount of between RM0.02 and RM 0.07 or approximately 2.3% and 7.6% to the range of the indicative RNAV per share," said the investment bank in the announcement.

AmInvest had also highlighted that future acquisitions of new land banks and new development projects may increase the indicative RNAV of Maica Group.

In addition, the investment bank said that the offer was deemed to be "not reasonable" as the TER Equity intends to maintain listing status of Maica and not acquire the outstanding offer shares.

TER Equity, which is privately owned by Klang property developer Datuk Ter Leong Yap, had on Jan 23 served an unconditional takeover offer to acquire all the shares in Maica at 85 sen per share.

Maica share closed flat at RM1.63 today.

Genting Plantations Bhd said its subsidiary GP Overseas Ltd had acquired the entire equity interest in SPC Biodiesel Sdn Bhd from Sterling Plantations Ltd for RM33 million, according to Bernama.

Sterling Plantations is a company listed on the Australian Securities Exchange.

Genting Plantations said SPC Biodiesel is principally involved in the manufacture and sale of palm biodiesel.

"The acquisition is in line with Genting Plantations' objective to venture into downstream activities related to palm oil," it said.

Genting Plantations said the new subsidiary is not expected to have any material effect on the group's profit for the financial year ending Dec 31, 2014.

At market close, Genting Plantations' share price fell 4 sen to RM10.54.

Formosa Prosonic Industries Bhd said net profit for its fourth quarter ended Dec 31, 2013, rose to RM3.97 million from RM2.51 million in similar quarter a year ago.

But revenue for the quarter slid to RM118.15 million from RM150.40 million a year ago.

Total profits for the full year of 2013 were down to RM21.83 million, from RM27.1 million a year ago. Revenue for the full year was down to RM555.99 million from RM734.47 million.

The company declared a dividend of 6 sen per share.

At market close, Formosa's share price rose 9 sen or 11% to 91.5 sen.