Stocks To Watch BToto, Kian Joo, Maybank, EA Holdings, Maica, Borneo Oil, CBIP, MAS, Extol

BJTOTO share tomorrow UP or DOWN with 9.5 cents dividend???

Business & Markets 2014
Written by Ho Wah Foon of   
Monday, 17 March 2014 19:38

KUALA LUMPUR (March 17): Based on news flow and corporate announcements today, the following companies may be in focus tomorrow:

Berjaya Sports Toto Bhd’s net profit for the third quarter ended Jan 31, 2014, fell 15% to RM73.16 million, from RM86.07 million in similar quarter a year ago. But revenue rose to RM1.23 billion from RM888.73 million.

The company attributed its decrease in profits to marginally higher prize payouts in the quarter.

Profits for the nine months fell to RM254.58 million from RM309.35 million a year ago.

Revenue for the nine months rose to RM2.98 billion from RM2.69 billion a year ago.

The company declared an interim dividend in the form of treasury share, which is equivalent to 9.5 sen a share for the quarter.

On future prospects, the company expects the gaming sector in Malaysia to remain resilient.

Kian Joo Can Factory Bhd announced that it has written to TTC of Japan to inform that “the company is in no position to consider their non-binding letter of interest dated 7 March 2014”.

Early last week, Kian Joo received a non-binding letter of interest from TTC to buy a 51% stake in the aluminium can manufacturing company at a tentative maximum price of RM3.74 per share.

The offer from the Toyota group’s trading arm is 13.3% higher than the RM3.30 per share offered by Aspire Insight Sdn Bhd in November last year.

TTC said it intended to first commence discussions with Kian Joo via a memorandum of understanding, followed by due diligence. It maintains its right to re-calculate the offer price of RM3.74, since the offer was made based on publicly available information.

Malayan Banking Bhd (Maybank) and Credit Guarantee Corporation Malaysia Berhad (CGC) is set to collaborate on a new Portfolio Guarantee (PG) to enhance access to financing for small and medium enterprises’(SMEs).

The PG is to be signed tomorrow by CGC’s Executive Vice President for Business Development Kristine Ng Wei Miem and Maybank’s Head for Community Financial Services Hamirullah Boorhan.

Maybank has committed RM1 billion worth of loans and financing to viable SMEs to be guaranteed by CGC.

The bank will also introduce a new portfolio guarantee which targets Bumiputra SMEs, the first of its kind and the largest to be signed between CGC and any financial institution in the country.

EA Holdings Berhad (EAH) announced a renounceable 1:1 rights issue, with 2:1 free warrants C.

The company said this would “further reward shareholders while strengthening its already impressive fundamentals as it moves boldly into its next chapter of growth”.

The issue price of the rights shares will be fixed at the par value of EAH Shares of RM0.10 each.

The company said EAH Chief Executive Officer Mohammad Sobri bin Saad, who owns 80 million shares in the company, has provided his irrevocable undertaking to subscribe in full his entitlement under this exercise.

EAH is also proposing to increase its authorised share capital from RM100 million to RM250 million.

“EAH is also actively looking out for potential companies under its stringent merger & acquisitions plan to diversify its portfolio of businesses and develop new streams of revenue,” said Sobri.

Malaysia Aica Berhad (Maica) confirmed an article headlined "Maica plans major cash call" appearing in The Edge Malaysia dated March 17 - March 23, 2014.

“The company is currently in the midst of considering a potential fund raising exercise…. the company will make the necessary announcement upon finalisation of the terms and timing of the proposed fund raising exercise, if any,” said its filing with Bursa Malaysia.

Borneo Oil Bhd announced that its wholly-owned subsidiary Borneo Oil & Gas Corp Sdn Bhd (BOG) has been appointed by Chapmark Sdn Bhd (CSB) as a sub-contractor for gold mining in Pahang.

According to Borneo Oil's statement to the exchange today, BOG will carry out gold prospecting and mining on a 400 acre (about 160ha ) area in Mukim Batu Yon in Lipis district for five years.

Upon expiry, the contract is renewable for another five years, according to Borneo Oil.

Perbadanan Kemajuan Negeri Pahang had leased the mining area to MMC Corp Bhd which in turn contracted the area to CSB for mineral prospecting and mining.

Borneo Oil said: “This sub-contract is expected to contribute positively to the future earnings and enhance the net assets of the group."

CB Industrial Product Holding Bhd (CBIP) has won a RM46 million contract for a palm oil mill in Papua New Guinea.

The palm oil equipment and parts manufacturer said its wholly-owned subsidiary Modipalm Engineering Sdn Bhd had today received the letter of award (LOA) from Gilford Limited, a unit of Rimbunan Hijau (PNG) Group, for the palm oil mill job.

“The LOA is expected to contribute positively to the earnings of the group for the financial years ending Dec 31, 2014 and Dec 31, 2015,” said CBIP.

Malaysia Airline System Bhd (MAS) could still be in focus amid the on-going investigations into the missing aircraft MH370, which now involves 25 countries.

MAS – the top active today – fell one sen to close at 23 sen on trades of 102.4 million shares.

MAS share, which was sold down on March 10, the first trading day after the MH370 incident, fell to a record low of 20.5 sen that day. But it recovered substantial losses after local funds mopped it up.

Last week, some analysts had lowered the earnings forecast of the national airline.

Hong Leong Investment Bank Bhd cut the target price for MAS shares to 20 sen from 25 sen.

Extol MSC Bhd was slapped with unusual market activity query by Bursa Malaysia on its recent sharp share price rise.

Despite this, the IT-security specialist's shares closed 3 sen or 7.7% higher at 42 sen on trades of 7.8 million shares.

Extol's share price has more than tripled from about 12 sen in early February this year to its current price.

The stock had risen from a one-year’s intraday low of 8.5 sen seen on March 18, 2013.