Stocks to Watch Gamuda, FIMA, AirAsia, AQRS, Bina Puri, Masteel, Puncak, Magni-tech, Crescendo

Business & Markets 2014
Written by Ho Wah Foon of   
Thursday, 26 June 2014 19:16

KUALA LUMPUR (June 26): Based on news flow and corporate statements today, the stocks in focus tomorrow (June 27) could include Gamuda, FIMA, AirAsia, AQRS, Bina Puri, Masteel, Puncak, Magni-tech, Crescendo.

Gamuda Bhd’s net profit soared 149% year-on-year (y-o-y) to RM177.9 million in the third quarter ended April 30, 2014, from RM71.4 million.

However, revenue slipped 1.1% y-o-y to RM633.8 million from RM641.1 million.

Gamuda declared a single tier second interim dividend of 6 sen per ordinary share.

The group said the significantly higher profit was due to higher contribution from property and water and expressway concessions divisions.

For the nine-month period, net profit totalled RM513.5 million versus RM373.7 million in the previous period, while revenue recorded was RM1.64 billion versus RM1.59 billion a year ago.

Fima Corporation Bhd has proposed to split its shares and undertake a bonus share issue to make the stock more affordable and improve its trading liquidity.

Fima Corp, involved in security printing property management and oil palm plantations, said it plans to split its shares with a par value of RM1 each into two units of 50 sen each.

Upon completion of the share split, Fima Corp will undertake a bonus issue of up to 82.4 million new shares. This will be done on the basis of one bonus unit for every two existing shares held.

AirAsia Bhd: Japan's biggest online retailer Rakuten Inc plans to buy a major stake in a Japanese budget airline to be established by AirAsia Bhd , in a renewed bid to tap one of Asia's most lucrative air markets, Reuters reported quoting Japanese media.

A foray into the airline business could help the Japanese company controlled by Japan's fourth-richest man, Hiroshi Mikitani, boost its online travel site that is already one of the nation's largest.

For AirAsia, it would be another attempt to expand to Japan after last year pulling out of a joint airline venture with Japan's biggest carrier ANA Holdings Inc. The venture, launched in 2011, failed to woo travellers.

The deal will be announced on July 1 in Tokyo, the Nikkei business newspaper said.

Gabungan AQRS Bhd announced that it is tendering for over RM1 billion worth of construction projects, and to increase its orderbook to more than RM2 billion.

The group’s orderbook currently stands at RM1.9 billion. Its ongoing projects include the Klang Valley Mass Rapid Transit Sungai Buloh to Kota Damansara line and road enhancement works in Negeri Sembilan.

“We aim to scale up our construction operations to have an ongoing orderbook of more than RM2 billion at any one time.

“Over the years, we have built up a solid portfolio of wide-ranging projects and sizes in the construction industry and we believe that together with our years of experience, it will give us the edge to secure some of these projects that we are tendering for,” said Ng Chun Kooi, CEO of Gabungan AQRS.

Bina Puri Holdings Bhd has secured RM281.5 million worth of residential property construction project in Brunei.

Bina Puri said its unit was appointed as master planner for the two-year high-density development involving 1,000 residential units within Kg Lugu.

"With this latest award, the group’s unbuilt book order stands at RM2.09 billion as at to date. The management is confident to secure more projects for the year 2014.

Malaysia Steel Works Bhd (Masteel) will be focusing on its mill expansion plans to drive growth going forward.

Speaking to press after the group's annual general meeting today, Masteel CEO and managing director Datuk Sri Tai Hean Leng said the group was constructing a new rolling mill in Bukit Raja, Klang.

"The mill is expected to be ready by 2015, with an initial downstream capacity of 200,000 metric tonnes.

Once on stream, the new rolling mill in Bukit Raja will enable us to generate an additional RM400 million in revenue at full capacity, which should be in FY2016," he said.

This is in addition to the group's current upgrade of its billet plant (also in Bukit Raja) to a capacity of 700,000 MT from 650,000 MT previously.  The billet mill is expected to be complete by end-2014.

Puncak Niaga Holdings Bhd is going big into the plantation business to diversify its non-water revenue stream, said executive chairman Tan Sri Rozali Ismail.

He said the group has identified a few potential pieces of land and the estates to acquire, said Bernama.

Rozali said part of the proceeds from the stake disposals of its units, Puncak Niaga (M) Sdn Bhd (PNSB) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), may be used for the acquisitions.

"I have the settlers' blood in me as I grew up in a Felda settlement. So I wish to be involved in the plantation business," he told reporters after the group's annual general meeting here today.

On the disposals of a 100 per cent stake in PNSB and 70 per cent equity in Syabas to the Selangor State Government, he said discussions were already at the final stage.

Rozali did not rule out the possibility of a special dividend for the shareholders.

Magni-tech Industries Bhd’s net profits for the fourth financial quarter ended 30th April 2014 rose 16% to RM8.49 million from RM7.31 million in similar quarter last year.

Revenue for the quarter rose to RM162.44 million from RM136.69 a year ago.

Net profits for the full year rose 17% to RM41.95 million from RM35.83 million last year. Cumulative revenue for the full year rose to RM651.27 million from RM565.82 million last year.

The company announced an 8 sen dividend per share, bringing its total dividends this year to 13 sen.

Crescendo Corporation Bhd’s net profits for the first financial quarter ended April 30, 2014, fell 69% to RM5.54 million from RM17.99 million in similar quarter a year ago.

Revenue for the quarter fell 28% to RM 51.16 million from RM71.05 million last year’s similar quarter.