Stocks To Watch MKH, MAS, IHH, Allianz, Astral Supreme, Merge Energy, Brahim’s, Supermax

Business & Markets 2014
Written by Ho Wah Foon of   
Tuesday, 11 March 2014 19:19

KUALA LUMPUR (Mar 11): Based on news flow and corporate announcements today, the following companies may be in focus tomorrow:

MKH Bhd has proposed a bonus issue of up to 75.7 million new shares in the property developer, on the basis of one bonus unit for every five shares held.

"MKH wishes to announce that the company proposes to undertake a bonus issue of up to 75,671,382 new ordinary shares of RM1 each in MKH on the basis of one bonus share for every five existing MKH shares held on an entitlement date to be determined later," said MKH, which also cultivates oil palm.

MKH shares rose three sen or 0.7% to close at RM4.10.

Malaysian Airline System Bhd (MAS) saw its share price rebound by as much as 0.5 sen or 2% to 24.5 sen today after yesterday’s plunge. But at market close today, MAS share ended flat at 24 sen in active trades.

The stock will continue to attract interest due to the on-going saga of missing aircraft MH370, that still could not be sighted after four days.

According to Ian Yoong Kah Yin, investment banker-turn-investor, MAS shares sold by retailers yesterday were well absorbed by local institutional funds.

Senior remisier Goh Kay Choong said today retail players appeared to have stopped selling heavily and begun picking up MAS shares at 24 sen.

After the disappearance of MH370 on Saturday, many analysts have lowered the target price of MAS and its earnings outlook this year. Yesterday, it closed at 24 sen per share or 4% lower, after trading at an intra-day low of 20.5 sen.

IHH Healthcare Bhd is considering making a A$5 billion (US$4.5 billion or RM15 billion) offer for Australian healthcare firm Healthscope, a person familiar with the matter told Reuters today.

The purchase would mark Malaysia-based IHH's first foray into Australia, where demand for healthcare services is growing rapidly due to an ageing population. It would also offer a swift and lucrative exit for U.S. buyout firms TPG and Carlyle Group Ltd, which paid A$1.99 billion for Healthscope in 2010.

When asked to comment, IHH said in a statement that it was "always looking at various value accretive opportunities to add to its portfolio". TPG and Carlyle declined to comment.

Healthscope, which owns 44 private hospitals in Australia and pathology operations in Australia, Singapore, Malaysia and New Zealand, reported A$328 million in operating earnings before finance costs, income tax, depreciation and amortisation (EBITDA) for the year ending June 2013.

Allianz Malaysia Bhd fell as much as 5% after Germany’s Allianz revealed it is the lead insurer covering Malaysian Airline System Bhd’s MH370 jet that disappeared last Saturday.

But the selling eased in late trades. At 5.00 pm market close, Allianz Malaysia ended down 26 sen or 2.4% at RM10.64. Earlier, it had fallen to a low of RM10.38.

Falling in tandem was its warrant, Allianz-PA, the top decliner. The warrant lost 28 sen or 2.6% to RM10.72, after recovering from a low of RM10.34 earlier.

According to Reuters, Allianz confirmed last night that it was the main provider of insurance on the aircraft itself and the liabilities attached to the passengers and cargo. The ill-fated aircraft carried 239 people on board.

Reuters reported the insured value of the aircraft could amount to around $100 million (RM328 million).

Astral Supreme Bhd has bagged two contracts totalling RM105 million, for the design and build and associated works for housing development projects in Malacca.

The manufacturer, assembler and exporter of electronic products and components said its wholly-owned subsidiary Astral Supreme Construction Sdn Bhd (ASC) had received the letters of award (LOAs) for the projects from Gemawan Bina Sdn Bhd and Permata Rebana Sdn Bhd.

“These projects are expected to contribute positively to the future consolidated earnings and enhance the net assets of the group for the financial years ending Dec 31, 2014 and Dec 31, 2015,” said Astral Supreme.

The firm said the projects commenced today and are scheduled to be completed by Mar 10, 2016.

Merge Energy Bhd announced that on 7 March 2014, its wholly-owned subsidiary Mewah Kota Sdn Bhd has received an award from the East Coast Economic Region Development Council for the construction of Ganchong Water Treatment Works, distribution pipeline, and booster pump stations in Pekan, Pahang, for a contract sum of RM157.96 million.

The construction period is 148 weeks.

The proposed project, expected to be completed by 16 January 2017, was expected to contribute positively to the earnings of the group, said the company.

Brahim’s Holdings Bhd announced that it had entered into a memorandum of understanding (MOU) with Dhyafat Albalad Alameen Co Ltd (Dhyafa) to set up a food factory in Makkah.

The food factory will be used to produce, sell and distribute food products, while also exploring various other opportunities.

Dhyafa is a private company owned by the Municipality of Holy Makkah, which aims to improve the hospitality and tourism services in Makkah.

Supermax Corporation Bhd has attracted the Employee’s Provident Fund Board (EPF) to buy more shares in the company.

EPF had acquired an additional 2.53 million ordinary shares of 50 sen each in Supermax on March 6, bringing the total number of shares it owns to 34.6 million, according to Supermax’s filing to Bursa.

Deleum Bhd has proposed a 1-for-3 bonus issue, 1-into-2 share split. Please read separate story on this.