Stocks To Watch Panasonic, Hibiscus, Apollo, VS Industry, Dialog, SKP, MAS

Business & Markets 2014
Written by Ho Wah Foon of   
Wednesday, 25 June 2014 19:44

KUALA LUMPUR (June 25): Based on news flow and corporate announcements today, the stocks that may be in focus tomorrow (June 26) could include Panasonic, Hibiscus, Apollo, VS Industry, Dialog, SKP, MAS.

Panasonic Manufacturing Malaysia Bhd proposed a special dividend of 23 sen per share and final dividend of 35 sen for the financial year to end-March 2014.

The ex-date for the dividends falls on Sept 5, 2014, and entitlement data is on Sept 9, the company said in its filings with Bursa Malaysia.

The company posted a new record revenue of RM899.2 million for the year ended March 2014.

It achieved a profit before tax of RM105.2 million for the year ended 31 March 2014, which was higher by 10.9% over the previous year.

Hibiscus Petroleum Bhd announced that Zubara Petroleum Ltd, a unit within the group, has received the extension to its concession from the government of Sharjah to commence activities leading to the drilling of an exploration well by the third quarter of 2015.

“Zubara, which owns 100% of the Sharjah Offshore block, will be finalising the award of a well management services contract by July this year,” said Hibiscus in a statement to the stock exchange.

The Sharjah drilling programme will be the group’s second drilling programme in the Middle East after the recent Block 50 Oman in March this year, it said.

Hibicus Petroleum said its unit, Lime Petroleum Plc, may lower its 100% equity interests in the well before the drilling programme starts.

Apollo Food Holdings Bhd's fourth quarter net profit fell 0.6% to RM7.09 million from RM7.13 million a year earlier. Revenue, however, rose to RM59.2 million from RM54.7 million.

Full-year net profit climbed to RM33.5 million from RM32.1 million a year earlier. Revenue was ,however, lower at RM220.5 million versus RM222.7 million.

V.S. Industry Bhd's net profit soared 100 folds to RM3.8 million in the third quarter ended April 30, 2014 (3QFY14) from RM38,000 a year earlier.

The electronic product contract manufacturer's revenue rose to RM376 million from RM242.3 million.

V.S. Industry said 9MFY14 net profit climbed to RM17.1 million from RM7.7 million a year earlier. Revenue was higher at RM1.18 billion compared to RM804.1 million.

For the quarter in review, V.S. Industry plans to pay a second interim single-tier dividend of 2.5 sen a share.

Dialog Group Bhd will be launching phase 2, or better known as phase 1B of its Pengerang Deepwater Terminal by next quarter, according to its Executive Chairman Tan Sri Dr Ngau Boon Keat.

Ngau told reporters after the group's extraordinary annual meeting that phase 2 would be officially launched in Johor, tomorrow, by Prime Minister Datuk Seri Najib Tun Razak.

He said phase 2 would have a bigger capacity and would cost more than phase 1, but did not disclose its actual cost.

Dialog had invested some RM2 billion in the first phase which included tanks for crude oils and petroleum products with a storage capacity of 1.4 million cubic meters. 

Dialog plans to increase income from storage facilities from its current 25% to about 30%-33%, he said.

SapuraKencana Petroleum Bhd (SKP) is optimistic of securing replenishment contracts worth RM10 billion this year to sustain the groups's visibility in the next three to four years.

President and CEO Tan Sri Shahril Shamsuddin said the current order book stands at RM27 billion.

"There is also an opportunity for the group to extend the existing contracts after the tenure has ended, worth about RM19 billion, but it's only an option," he told reporters after the company's annual general meeting today.

Malaysia Airlines System Bhd (MAS) may continue to be in the limelight after today’s five-hour annual general meeting, at which shareholders hit out at the board of directors and top management for failing to turn around the company.

Addressing shareholders on the focus and strategy of the national airline, MAS group CEO Ahmad Jauhari Yahya said:

“Our only option at this point of our business evolution is radical or sweeping change. We have four real and tangible world-class assets: our product, our service, our engineering capabilities and our safety track record. To be competitive in the future, we have to unlock and unleash the full value of these great assets.”

The question now is whether after the AGM, investors are prepared to give the top management a chance to show that they can deliver.

The ailing carrier had in the first quarter this year reported a wider year-on-year loss. Prior to that, MAS was hit by the disappearance of its MH370 passenger jet bound for Beijing with 239 people onboard.

Ahmad Jauhari Yahya refuted that MAS is in talks with foreign airlines. According to him, MAS will embark on a 'radical set of changes' to restore the airline.

He said MAS is 'keeping all its options open' and 'will not rule out anything'.

When asked if MAS would implement the restructuring exercise within six to 12 months, he said: "The time now is critical. I don't want to put a timeline."