Stocks To Watch Tenaga, Gadang, BAT, MAHB, CanOne, PetChem, GenM, CAP, Pantech, Ho Hup

Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Thursday, 24 April 2014 19:58


KUALA LUMPUR (April 24): Based on news flow and corporate announcements today, the companies that may be in focus tomorrow include:

Tenaga Nasional Bhd said its net profit for the second quarter end-February 2014 rose 31% year-on-year to RM1.67 billion from RM1.27 billion in similar quarter of previous financial year.

Revenue for the quarter increased to RM10.01 billion from RM8.85 billion in the previous year’s same quarter.

Net profit for the first half of the year improved to RM3.41 billion from RM2.69 billion in the previous year’s same period, while revenue was higher at RM19.59 million compared to RM17.98 million.

Gadang Holdings Bhd’s net profit multiplied 5.3 times to RM19.2 million in the third quarter ended Feb 28, 2014, from RM3.6 million a year earlier.

Revenue soared 67.8% year-on-year to RM147.5 million from RM87.9 million.

The property developer attributed the larger net profit and higher revenue to bigger contributions and better margins from construction and property activities.

For the nine-month period to end-February, net profit was RM34.6 million versus RM18.4 million in the previous corresponding period, while revenue registered was RM401.9 million from RM259.1 million.

The board expects the performance for the current financial year to be better than the previous year.

British American Tobacco (Malaysia) Bhd’s (BAT) net profit rose 10.4% year-on-year (y-o-y) to RM225.4 million in the first quarter ended Mar 31, 2014, from RM204.2 million.

Revenue rose 5% y-o-y to RM1.15 billion from RM1.09 billion.

BAT declared a first interim dividend of 75 sen per share under the single-tier tax system for the financial year ending Dec 31, 2014.

Malaysia Airports Holdings Bhd (MAHB) posted a net profit of RM128.7 million for the first quarter of 2014, up only 2% from RM126.1 million in the first quarter of 2013 due to a plunge in construction revenue.

But it posted a year-on-year fall of 24% in revenue for the quarter to end-March 2014. Revenue for the quarter was RM781.1 million, compared to RM1027 million in the first quarter of 2013.

On a separate development, the International Civil Aviation Organisation (ICAO), a specialised agency of the United Nations that provides standards, regulations and procedures for international aviation, has certified that new airport klia2 has met its safety standards.

Acting Transport Minister Datuk Seri Hishammuddin Tun Hussein said: "I would like to announce today that a report by ICAO has confirmed that klia2 is safe. The report was tabled in the Cabinet yesterday."

Can-One Bhd expects its profit and revenue for financial year ending Dec 31,2014 (FY14) to be flattish if not slightly better than last year's results, said its chief financial officer Khoo Kay Leong.

Speaking to the media after the company’s annual general meeting today, Khoo said the company would see some challenge in its packaging division this year due to the price increase of raw materials.

The firm operates four segments: general cans (packaging division), food products, international trading and property and investment holding.

Petronas Chemicals Group Bhd (PetChem) has allocated RM2.3 billion as capital expenditure for 2014.

Speaking to the press today after the group's annual general meeting, PetChem Chairman Datuk Wan Zulkiflee said of the total, RM1.2 billion would go to PetChem's Sabah Ammonia Urea project.

Wan Zulkiflee also said PetChem would have a new CEO, Sazali Hamzah, effective 1 May, after the current CEO retires.

Sazali is currently the managing director and CEO for the group's Melaka refining complex.

Looking ahead, PetChem aims to increase its plant utilisation rate to around 85% for 2014, from current rate of 78%.

Genting Malaysia Berhad (GenM) said its indirect wholly-owned subsidiary, RW Orange County LLC (RW Orange County), has submitted a US$1 million application fee to the New York State Gaming Commission on 23 April 2014.

GenM said the payment allowed RW Orange County to participate in the selection process to develop and operate a gaming facility in New York State.

“RW Orange County is currently evaluating the project and will have until June 30, 2014 to decide if it wishes to formally submit a bid,” it said.

China Automobile Parts Ltd (CAP), referring to its announcements made on 16 April, 21 April and 23 April 2014 in relation to the dealings by the company’s deputy chairman Ong Juan Tee and MD Li Guo Qing, said there was no unusual or material development.

“After making due enquiry with the directors, there is no unusual or material development affecting the company’s business, including any change to its management team and Board.

“The controlling shareholders of CAP shall remain unchanged with Mr. Ong Juan Tee and Mr. Li Guo Qing collectively holding in aggregate 272,000,000 shares representing 45.33% of the total issued and paid-up share capital of the company,” CAP said in a statement.

The share price of CAP closed flat at 36 sen per unit today after falling yesterday.

Pantech Group Holdings Bhd said its net profit for the fourth financial quarter ended February 28, 2014 rose 7% to RM 14.6 million from RM13.7 million in a similar quarter a year ago.

Revenue for the quarter fell to RM127.8 million from RM154.8 million in similar quarter a year ago.

Net profit for the full year fell to RM55.8 million from RM56.1 million last year.

Similarly, cumulative revenue for the full year slipped to RM574.9 million from RM 635.7 million last year.

The company announced a final single-tier dividend of 1 sen per share.

Ho Hup Construction Company Bhd said net profit for its first financial quarter to end-March 2014 jumped to RM11.3 million from RM375,000 a year ago.

Revenue also soared to RM82.4 million, from RM23.3 million a year ago.

The share price of Ho Hup, which had risen in the past several trading days from RM1.46 to RM1.68, closed one sen down to RM1.67 today.