Stocks To Watch TA Enterprise, MRCB, CHHB, Wah Seong, Tune, Silk, Harvest Court


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Friday, 20 June 2014 19:54

KUALA LUMPUR (June 20): Based on news flow and corporate announcements today, the stocks that may be in focus on Monday (June 23) could include:

TA Enterprise Bhd said its first quarter results ended April 31, 2014 (1QFY15) will "pleasantly surprise".

"You will be pleasantly surprised by our first quarter results, coming out in three days' time," said Kimmy Khoo Poh Kim, executive director of TA Global Bhd, during a press conference after the annual general meetings of TA Enterprise and TA Global.

Both companies are controlled by the same people.

Kaladher Govindan, head of research for TA Securities Holdings Bhd, said that the group aims to set up more branches, expand its foreign desk, increase its fee-based income and pool of proprietary day traders.

The group will be opening its 9th stockbroking branch by end-2014. "The new branch will be located outside the Klang Valley," said Alice Tan Kuay Fong, managing director and CEO of TA Enterprise.

On whether the group will be selling off its stockbroking arm, Tan said: "Everything has a price, so maybe if the offer is attractive we will consider".

For the KLCI, TA Enterprise maintains a positive outlook, with a year-end target of 1,925 points.

"I believe there will be an up-run this year, but we may probably see a cool down in the earlier part of next year," said Govindan.

Malaysian Resources Corp Bhd (MRCB), Nusa Gapurna Development Sdn Bhd (NGD) and the Selangor State Development Corp (PKNS) have reached an out-of-court settlement to resolve disputes over the ownership of the proposed RM3 billion PJ Sentral mixed project in Petaling Jaya, Selangor.

MRCB said the agreement would allow it to "fully control and consolidate" PJ Sentral's future income.

In February this year, the Kuala Lumpur High Court had allowed NGD to dispose of its 70% stake in PJ Sentral Development Sdn Bhd to MRCB after the High Court dismissed a suit by PKNS.

But PKNS, which holds the balance 30% stake in PJ Sentral, had filed a suit against NGD and MRCB in June 2013. PKNS had then claimed that it had pre-emption rights over NGD’s 70% stake in PJ Sentral.

MRCB said it had signed a share sale agreement with PKNS for the acquisition of the 30% stake in PJ Sentral for RM85 million cash.

Country Heights Holdings Bhd (CHHB) announced a gross development value (GDV) of RM936 million for the next 12 months for 4 major projects that it will be developing in the Mines.

The four major projects include the Mines Waterfront Business Suites, a retirement resort home, a mixed development project and a series of office & retail shops, the company announced at its annual general meeting (AGM) today.

CHHB will consider a proposal by a shareholder to revalue the company’s properties, said its chairman Tan Sri Mohamed Hashim bin Mohd Ali.

“We are prepared to revalue the company to give you a full picture of what the company is actually worth,” Hashim replied after the shareholder made the revaluation proposal at the AGM today.

The company’s last reported net tangible assets (NTA) per share was RM 2.87.

At the same meeting, company advisor Tan Sri Lee Kim Yew, whose family controls about 60% of the property development company, said he is agreeable to a proposal to start paying dividends now that the company has turned around and begun to post profits.

Responding to a question at the AGM whether Lee will take Country Heights private as the current share price of RM1.50 is very much below its net tangible value of RM2.87 per share, Lee said: “At this moment, there is no plan for me to take the company private.

Wah Seong Corporation Bhd expects a promising year ahead due to an order book of RM1.7 billion and tenders worth about RM5 billion, Bernama reported.

Managing Director and group CEO Chan Cheu Leong said the company expects a healthy job flow for the next couple of years amid numerous developments creating new opportunities for the group.

"Apart from winning several significant projects and establishing a solid order book of RM1.73 billion, we are also geared for expansion globally," he told reporters after the group's AGM today.

Chan said Wah Seong is tendering for jobs worth between RM4.8 billion to RM5 billion with the bulk being pipe-coating related jobs worth RM1.7 billion to RM1.8 billion.

He said the tender success rate would vary, with a likely 50% for pipe coating and 20% to 30% for the engineering and fabrication divisions respectively, due to the stiff competition.

Tune Ins Holdings Bhd announced the successful sale of 42.5 million shares in Tune Ins Holdings Bhd (TIHB) via an overnight placement.

The proceeds from the sale were earmarked for Tune Group’s investments in its online and other ventures, it said in a statement.

The placement shares represent 5.7 per cent of the total shares outstanding in TIHB, thereby increasing its free float from 43.3 per cent to 54.6 per cent.

Tune Group co-founder Tan Sri Tony Fernandes said the exercise was also in response to feedback from investors for greater liquidity in the stock.

Following the placement, Tune Group now holds a direct and indirect interest of 37.0 per cent in TIHB from 42.6 per cent previously.

Silk Holdings Bhd’s net profits for the third financial quarter ended 30 April, 2014, rose 618% to RM5.26 million from RM733,000 in the same quarter a year ago.

Revenue for the quarter fell to RM87.70 million from RM 93.82 million a year ago.

Net profits for the nine months rose to RM 8.67 million from RM5.52 million a year ago. Cumulative revenue for the nine months fell to RM267.10 million from RM 290.87 million a year ago.

Harvest Court Industries Bhd’s long and tensed AGM today saw CEO Datuk Raymond Chan Boon Siew being ousted as a director of the board.

The three-and-a-half-hour long AGM also saw shareholders rejecting all six resolutions. One of the six resolutions was the reappointment of Chan as a director Harvest Court.

But after the AGM, Chan told reporters: "I am still the CEO. I still have to report to the board of directors."

He alleged that Datuk Eddie Chai Woon Chet and Datuk Kenneth Vun had a collective stake of 33% in Harvest Court and they should launch a general offer for shares not already held by them.