Stocks To Watch Nestle, RHB Cap, Pharma, Tune Ins, C. Heights, Protasco, TeoSeng, Crest Builder, Gas Malaysia

Business & Markets 2014
Written by Ho Wah Foon of   
Monday, 24 February 2014 19:52

KUALA LUMPUR (Feb 24): Based on corporate announcements and results released up to 7.15 pm today, the following companies may be in focus tomorrow:

Nestle (Malaysia) Bhd declared a final dividend of 175 sen per share, after announcing its fourth quarter results. This dividend will be paid on June 5.

For its fourth quarter to December 2013, Nestle posted a net profit of RM100.5 million, a slight improvement over 2012’s fourth quarter. Turnover was RM1.1 billion, 3.5% higher than 4QFY12.

For the full year of 2013, net profit rose to RM561.7 million from RM505.4 million in 2012, while revenue rose to RM4.79 billion from RM4.56 billion.

On outlook for this year, Nestle said: “We remain cautiously optimistic on the outlook for 2014. The external environment is showing some signs of recovery in the developed world while the emerging markets economies are experiencing some volatility.”

RHB Capital Bhd’s net profit jumped 24% year-on-year (y-o-y) to RM505 million in the fourth quarter ended Dec 31, 2013, from RM408 million in similar quarter of 2012.

Revenue for the quarter also rose 13% y-o-y to RM2.5 billion from RM2.2 billion.

The group said gross loans grew by 9.2% during the year to reach RM121.8 billion. "Retail and Easy" by RHB continued to perform well with combined loans growth of 14.1%.

RHB Capital’s Chairman Datuk Mohamed Khadar Merican said: “We proposed a final single-tier dividend of 10.30% totalling RM262.3 million.”

For the full-year period, net profit stood at RM1.83 billion versus RM1.78 billion in the previous year, while revenue generated was RM9.57 billion from RM8.02 billion a year ago.

“The group expects performance for the financial year 2014 to continue its growth momentum,” RHB said.

Pharmaniaga Bhd posted a net profit of RM20.81 million in its fourth quarter ended December 31, 2013, against the previous corresponding quarter’s net loss of RM7.93 million.

The pharmaceutical products manufacturer reported a 17.71% increase in revenue to RM567.86 million from RM482.4 million.

Pharmaniaga said the rise in 4QFY13 revenue was due to higher demand from both concession and non-concession businesses.

Pharmaniaga declared a fourth interim dividend of 6.2 sen a share.

The company’s full-year net profit shrank to RM55.2 million from RM61.71 million a year earlier. Revenue rose to RM1.95 billion compared with RM1.81 billion.

Tune Ins Holdings Bhd reported net profit of RM21.6 million for the fourth quarter to December 2013, up from RM18.1 million in similar quarter a year ago.

Revenue rose to RM107.4 million, from RM90.5 million.

TIH’s unaudited full-year net profit also increased to RM68.6 million, from RM41.4 million, “due primarily to an increase in operating revenue of 71.9% to RM 389.6 million”, said the company in a press release.

On outlook, Miller said: “We are confident we will see continued growth in our profits this year.”

Country Heights Holdings Bhd reported lower net profit of RM14.0 million for the fourth quarter to Dec 31, 2013, from RM19.9 million in similar quarter a year ago. Revenue stood at RM76.5 million, as compared to RM78.8 million.

For the full year to December 2013, the property group reported total profits of RM35.8 million, up from RM25.3 million the previous year. Total revenue for the year increased to RM263.0 million, from RM 253.7 million.

Protasco Bhd announced that its net profit for the fourth quarter ended 31 December 2013 improved by 136% to RM15.9 million, from RM6.7 million a year ago. 

For the full year of 2013, net profit improved by almost 30% to RM48.6 million, from RM37.5 million.

“The improved performance was attributable to higher revenue recognised for this financial year from RM794 million to RM972 million, an improvement of 22%,” said the company in a press statement.

“We are delighted that all divisions (construction, property, infrastructure maintenance, engineering services and education) are profitable for the financial year under review,” said Group Managing Director Datuk Seri Chong Ket Pen.

On the prospect of Protasco, Chong said: “Maintenance, construction and property development are expected to contribute significantly to the group’s performance in 2014.  Our latest venture into oil and gas industry is expected to start contributing in 2014.”

Teo Seng Capital Bhd has proposed a final single-tier dividend of 7.50% in respect of the financial year ended 31 December 2013.

For the third quarter to September 2013, it posted a net profit of RM6.9 million and revenue of RM80.3 million. For nine months to September 2013, total profits stood at RM17.7 million on revenue of RM241.6 million.

There were no comparative figures for the individual and cumulative quarters in the preceding year as the company has changed its financial year-end from 31 March to 31 December.

Crest Builder Holdings Bhd has secured a construction job worth RM64 million from Naza Engineering & Construction Sdn Bhd.

The construction and engineering firm said it had via its wholly owned subsidiary Crest Builder Sdn Bhd secured a contract from Naza for the ‘construction of super-structure works of a tower of 36-storey serviced apartments’.

“The contract is expected to contribute positively to the earnings of the group for the financial years ending Dec 31, 2014 and onwards,” said Crest Builder.

The contract is expected to be completed by Mar 2, 2016.

Gas Malaysia Bhd has entered into two joint ventures to expand into new market areas in Malaysia.

The first, with IEV Energy Sdn Bhd, will make natural gas accessible to locations outside the reach of pipelines by compressing the gas, transferring the volume into mobile pipes and physically transporting it.

The second joint venture is with Energy Advance Co Ltd, a subsidiary of Tokyo Gas. The venture will reduce overall electricity costs by using gas as the main source of energy to generate electricity, steam, or heat. It will develop and operate a combined heat and power (CHP) system at customers' sites.