Stocks to Watch CIMB, Landmarks, CSL, Pestech, Censof, Ipmuda, MAS

Business & Markets 2014
Written by Ahmad Naqib Idris Adzman Shah of   
Thursday, 03 July 2014 20:00

KUALA LUMPUR (July 3): Based on corporate news today, the stocks in focus tomorrow could include CIMB Group Holdings Bhd, China Stationeries Ltd, Landmarks Bhd, Pestech International Bhd, Censof Holdings Bhd, Ipmuda Bhd and MAS.

CIMB Group Holdings Bhd has announced that Datuk Seri Nazir Razak will be taking over as chairman of CIMB Group and relinquishing his position as group CEO, with effect from Sept 1, 2014.

In a statement released today, CIMB Group said that Nazir will be taking over from Tan Sri Md Nor, who has led the group as chairman since July 2006.

It also added that Nazir will chair an Executive Committee of the board (to be established), that will focus on “key strategic matters and enhance the board’s oversight functions”.

The statement added that Nazir will continue to serve as President Commissioner of PT Bank CIMB Niaga and Deputy Chairman of CIMB Bank, and will be nominated Chairman of CIMB Investment Bank, with effect from Sept 1, 2014.

Meanwhile, Khazanah Nasional Bhd had also announced today, that Nazir will joint its board as a director.

CIMB Group fell 5 sen to close at RM7.30 today, with a market capitalisation of RM60.86 billion.

Landmarks Bhd has announced that it has formed a joint venture (JV) with an Indonesian firm, to produce concrete and mortar for construction works on the Bintan Island.

According to its announcement to Bursa Malaysia, Landmarks and its Indonesian partner, PT Ekasurya Mandiri, will be setting up a 51:49 JV entity, known as PT Pesona Lagoi Mandiri.

PT Pesona will be setting up a batching plant on Bintan Island, to supply concrete for the construction works related to Treasure Bay Bintan — a multi-billion ringgit resort destination, being developed by Landmarks.

In an interview with The Edge Financial Daily, which will be published on July 4, Landmarks’ management had said that the initial phase of its Treasure Bay Bintan resort project will start operation over the next few months.

They also shared that more announcements will be made concerning tie-up and joint ventures with major resort/ hotel operators, for the first phase, that will have a gross development value of US$650 million.

Landmarks ended 2 sen or 1.82% higher today at RM1.12, with a market capitalisation of RM538.51 million.

China Stationeries Ltd (CSL) expects only a "temporary" suspension in the trading of its shares, for the period July 9 to 31, according to Chief Financial Officer, Chin Siew Weng.

Chin said that the temporary suspension could even be shorter, as the company was confident of submitting its FY13 audited accounts before July 31.

Speaking at a press briefing today, Chin said: “We are trying our best to talk to our auditor, to pass us the FY13 audited report soon.”

He noted, however, that a suspension of the stock would still be inevitable, come July 9.

CSL has yet to submit its audited financial statements for the 2013 financial year, on the extended deadline of June 30, prompting Bursa to announce that failure to do so by July 8, would lead to a suspension in trading of CSL's shares on July 9.

According to Chin, CSL was not aware of Bursa's requirement that companies seeking an extension, had to apply two weeks before the submission due date.

CSL fell 1 sen or 11.76% today, to close at 7.5 sen, with a market capitalisation of RM92.46 million.

Pestech International Bhd is forming collaboration with Trax Llc, for business development, marketing, sales and project execution for power plant operator training simulator, engineering analysis and training solutions.

Under the agreement, Pestech will be the system integrator and value provider for Trax’s power plant operator training simulator, engineering analysis and training solutions.

“The MOU will have no material effect on earnings, revenue and net assets per share of the group, for the financial year ending Dec 31, 2014, but is expected to contribute positively to the future earnings of the company,” said Pestech.

Pestech rose 18 sen or 2.99% to end at RM6.20 today, with a market capitalisation of RM610.5 million.

The stock has gained over 60% since February, following the initiation coverage by Kenanga Investment Bank, which likes the firm’s encouraging contract flow.

Pestech provides power system engineering and technical solutions for electric power assets.

Censof Holdings Bhd has proposed a free warrants issue, on the basis of one new warrant for every four existing ordinary shares of 10 sen each, to reward its existing shareholders.

The exercise price of the free warrants is fixed at 46 sen each, at a discount of 6.62% to the 5-day volume weighted average market price of Censof of 49.26 sen up to June 26, 2014. The entitlement date for the new warrants will be determined and announced later.

Censof rose 1 sen to close at 48.5 sen today, with a market capitalisation of RM199.5 million.

Ipmuda Bhd has been issued an unusual market activity (UMA) query by Bursa Malaysia, after its share price rose 33 sen or 30%, to hit limit up today.

At 5.00pm market close, the company closed at its intraday high of RM1.43, which gave it a market capitalisation of RM103.63 million.

In its response to Bursa’s UMA query, the company said that it was not aware of any developments that could have contributed to the unusual activity in its stock.

Malaysian Airline System Bhd said that it is ‘not aware’ of any decision on the privatisation of the company, for the restructuring of the loss-making airline.

The announcement was made, in response to a foreign news report yesterday, entitled: “MAS may be taken private for restructuring”.

However, the airline did state that such a decision is in the hands of MAS major shareholder and the government of Malaysia. But as of now, it is “not aware of any decision that has been made by both of them, on this matter”.

MAS rose 2 sen or 9.52% to close at 23 sen, with a market capitalisation of RM3.84 billion.