Stocks To Watch Takaful Malaysia, AMMB, Gunung Cap, Perwaja, Zelan, LBS, VTI Vintage

Business & Markets 2014
Written by Ho Wah Foon of   
Monday, 17 February 2014 19:48

KUALA LUMPUR (Feb 17): Based on news flow and corporate announcements up to 7.25 pm today, the following stocks may attract attention tomorrow:

Syarikat Takaful Malaysia Bhd’s net profit rose 28% year-on-year to RM41 million in the fourth quarter ended December 31, 2013, from RM32 million in similar quarter of previous financial year.

Revenue climbed to RM379 million from RM316 million, according to Syarikat Takaful which offers Islamic insurance.

The firm has proposed a dividend of 30 sen a share for the quarter in review. This brings total dividends for the year to 42 sen.

For the full-year, net profit rose to RM139 million from RM101 million in the previous year while revenue climbed to RM1.7 billion from RM1.6 billion.

AMMB Holdings Bhd posted a net profit of RM432.09 million for the third quarter ended December 2013, up 6.8% from RM396.21 million in similar quarter of previous year. Earnings per share (EPS) rose to 14.07 sen from 13.2 sen.

The rise in profit was achieved on the back of increased revenue of RM2.43 billion, compared to RM2.34 billion in previous year’s similar quarter.

For the cumulative three quarters to December 2013, net profit rose to RM1.33 billion, from RM1.22 billion in similar nine-month period in the last financial year. EPS rose to 44.23 sen, up from 40.27 sen.

Revenue for the nine months in current financial year totaled RM7.21 billion, from RM6.36 billion.

Alliance Research said the results were in line with market expectations.

Gunung Capital Bhd’s net profit fell 22% year-on-year (y-o-y) to RM2.3 million in the fourth quarter ended Dec 31, 2013, from RM3.0 million, due to decrease in contract revenue.

Revenue also fell 16% y-o-y to RM15.7 million from RM18.8 million.

The firm, which focuses on chartering transportation assets, said the decrease in revenue was due to the re-scheduling of the National Service programme for last year in its contract with the Ministry of Defence. This resulted in a reduction by a half month of revenue in the reviewed quarter.

For the full-year period, net profit earned was RM13.8 million versus RM13.7 million in the previous year, while revenue generated RM79.9 million from RM79.0 million a year ago.

Perwaja Holdings Bhd (PHB) said its wholly-owned subsidiary Perwaja Steel Sdn Bhd was finalising an agreement with Tenaga Nasional Bhd.

The agreement involves Perwaja's outstanding payments to state-controlled utility Tenaga.

“Once the agreement is signed, PHB will make the necessary announcements,” said Perwaja.

Perwaja's announcement was made in response to a news report that the group had secured a favourable deal with Tenaga. The deal was said to have come with a long-repayment period for power rendered by Tenaga.

Zelan Bhd announced that it had netted RM22.9 million for the third quarter to December 2013, a turnaround from a net loss of RM20.2 million in similar quarter of the previous financial year.

Revenue for the third quarter under review rose to RM51.8 million, from RM12.7 million.

For the nine months to December 2013, total profits stood at RM24.6 million, compared to a net loss of RM32.4 million. Revenue totalled RM174.1 million, up from RM47.2 million.

LBS Bina Group Bhd (LBGB) announced it was taking up interests in PN17 company VTI Vintage Berhad (VVB) via participation in the latter’s regularisation plan, by subscribing for interests in VVB at total consideration of up to RM13,435,323.

It said it planned to subscribe 8,000,000 new shares of RM0.50 each in VVB at an issue price of RM0.50 each pursuant to VVB’s proposed private placement, take up

8,000,000 new shares in VVB at an issue price of RM0.50 together with warrants on the basis of 1 warrant for every 2 rights shares, and subscribe up to 10,870,646 unsubscribed rights shares pursuant to VVB’s proposed rights issue with warrants.

“Upon completion of the proposed subscriptions, LBGB shall hold potential minimum and maximum shareholding of approximately 17.5% and 29.4% respectively of the issued and paid-up share capital of VVB,” said LBS in a filing to Bursa Malaysia.

The property development company said the subscription is an opportunity for it to diversify its business into the manufacturing and trading of roof tiles, roof and steel related products.

The group is expected to obtain competitive prices for these building materials for its property development and construction division, it said.  

Further, under the new leadership, VVB has managed to tender and successfully secure some construction contracts from its own resources, LBS added.

“Accordingly, it is expected to contribute positively to the future earnings of VVB. In addition, LBGB will also record a dividend income if VVB declares and pays dividend in the future.”