Stocks To Watch Top Glove, Airports, SP Setia, SK Petro, Extol, Bintulu, U.Malacca, Sceintex, Masterskills


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Thursday, 20 March 2014 19:55

KUALA LUMPUR (March 20): Based on news flow and corporate announcements today, the following companies may be in focus tomorrow:

Top Glove Corp Bhd reported a 17% decline in second quarter net profit from a year earlier as lower average selling prices for gloves led to less revenue for the firm.  Loss at China unit and foreign exchange (forex) losses had also curbed profit.

Top Glove said net profit declined to RM41.5 million in the quarter ended February 28 this year (2QFY14) from RM50.3 million. Revenue fell to RM548.3 million from RM576.4 million.

Top Glove's cumulative first-half net profit fell to RM91.8 million from RM107.8 million a year earlier. Revenue was lower at RM1.12 billion versus RM1.16 billion.

Looking ahead, Top Glove said it is focusing on its output capacity expansion. This involved adding another six nitrile glove lines to its existing Factory 27 in Lukut, Negeri Sembilan by May this year.

At market close today, Top Glove fell 25 sen or 4.5% to RM5.28.

Malaysia Airports Holdings Bhd (MAHB) said it is confident of recording passenger growth of 9.7% in 2014, as it will continue to enjoy the benefit from the entry of new airlines and expansion of local carriers.

“Apart from the seven new foreign airlines that have started their operations in 2013, Malaysia Airlines and AirAsia Group are expected to continue contributing strongly to the passenger growth, while Malindo Air is expected to launch new routes in 2014,” said MAHB in a statement after its annual general meeting today.

It said Malaysia Airlines’ entry into the One World alliance in February 2013 has helped increase KLIA’s market outreach and connectivity across continents.

The expected seat capacity expansion of airlines, coupled with strong tourist arrivals due to the Visit Malaysia Year 2014, will support MAHB’s growth momentum, said MAHB which still believes Klia2 will start operation on May 1.

In a separate announcement, Malaysia Airports Holdings Bhd announced it has fixed the final dividend at 5.78 sen per share for the year ended Dec 31, 2013.

the dividend will go ex on April 1, 2014, payable on April 30, 2014.

MAHB ended higher at RM8.16, up 11 sen or 1.4%.

SP Setia Bhd reported a net profit of RM96.8 million for its first quarter ended January 31, 2014 (1QFY14), up 3.9% year-on-year from RM93.2 million a year earlier, due to a gain from the sale of a property.

However, revenue fell to RM721.6 million from RM734.9 million.

Going forward, SP Setia said it would focus on the delivery of its projects, amid a challenging landscape.

"Demand has dampened considerably for higher-priced properties and cost pressures are rising. The industry also continues to face shortages of skilled labour.” 

SP Setia fell one sen to RM2.95 per share at close.

SapuraKencana Petroleum Bhd (SK Petro) announced it has signed a RM16.5 billion (US$5 billion) “refinancing club deal” with 13 local and international banks.

Maybank Investment Bank and CIMB Investment Bank were the coordinating Banks while Maybank Investment Bank acted as the Agent and the Security Agent, said the company in a statement.

“The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012.

“It was also undertaken for the financing of the group's two most recent acquisitions the Seadrill tender-rig business and the purchase of the entire equity interest in Newfield Malaysia Holding Inc," said the company.

At market close, SapuraKencana fell 4 sen or 1% to RM4.17 per share.

Extol MSC Bhd said it has received a notice from four shareholders, holding no less than 10% of the paid up capital of the company, requisitioning for an EGM to remove three directors and appoint three new ones to the board.

The company informed the stock exchange that the notice and requisition was received yesterday from Manjung Untung Sdn Bhd, Crystal Privilege Sdn Bhd, Datuk Lai Wen Shian and Datuk Lai Wen Horng.

The four are seeking the removal of directors Datuk Ahmad bin Ismail, Mohd Badarudin bin Masodi, Mohd Faidzal bin Ahmad Mahidin from the board.

They are seeking the appointment of Datuk Lai Wen Shian, Wong Ngai Peow and Low Kim Leng to be directors to the board.

Bintulu Port Holdings Bhd, through its wholly-owned unit Samalaju Industrial Port Sdn Bhd has accepted a contract for the construction and completion of the Samalaju Port Development Project.

The contract is valued at RM47.5 million, and will be for duration of 24 months from its commencement.

United Malacca Bhd’s net profit jumped 30% year-on-year (y-o-y) to RM20.9 million in the third quarter ended Jan 31, 2014, from RM16.1 million.

Revenue leapt 46% y-o-y to RM72.6 million from RM49.6 million.

The palm oil player said for its nine-month period, net profit recorded RM53.8 million versus RM58.9 million in the previous period. Revenue registered RM180.9 million from RM161.9 million a year ago.

“The group expects satisfactory performance for the current year,” said United Malacca going forward.

Scientex Bhd’s net profit jumped 32.5% year-on-year (y-o-y) to RM33.9 million in the second quarter ended Jan 31, 2014, from RM25.6 million.

Revenue leapt 41.5% y-o-y to RM383.5 million from RM271.1 million.

For the half-year period, net profit registered RM63.3 million versus RM50.5 million in the previous corresponding period, while revenue raked in RM748.3 million from RM512.7 million a year ago.

Masterskill Education Group Bhd’s major shareholder Siva Kumar M Jeyapalan stands to reap RM134 million from the planned sale of his 122 million shares or 29.76% in the firm to an individual at RM1.10 per share.

Masterskill said Siva Kumar had signed a call and put option agreement with Gary How Soong Khong, who is based in Hong Kong.

Trading of Masterskill shares was suspended between 9am and 10am today in conjunction with the announcement.

At market close, Masterskill shares rose two sen to 40.5 sen with some 20.89 million units done.