Business & Markets 2014
Written by Liew Jia Teng of theedgemalaysia.com
Thursday, 31 July 2014 20:11
KUALA LUMPUR (July 31): Based on news flow and corporate announcements today, the stocks that may be in focus on Friday (Aug 1) could include Guocoland, Zelan, Redtone, Hua Yang, Malpac and George Kent.
Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) on Guocoland (M) Bhd, over the unusual rise in share price recently.
“We draw your attention to the recent price rise of your company’s shares recently,” said the regulator.
Bursa Malaysia today directed the low-profile property firm to issue a statement for public release, after making due enquiry with its directors and major shareholders for the cause of the UMA in the company’s shares.
The stock exchange also advised investors to take note of Guocoland’s reply to the UMA query, when making their investment decision.
Shares of Guocoland attract buying interest lately, following its acquisition of a property company to expand its land bank. The group also plans to develop a township in Rawang, Selangor; a mixed development in Sepang; and a corporate office venture in Petaling Jaya.
On Wednesday (July 30), its share price jumped 33 sen or 22% to RM1.85, soaring to a six-year high, while its trading volume has also increased in the past four trading days.
At press time, Guocoland has yet to respond to Bursa Malaysia. Today, the counter closed at RM1.80, down 5 sen or 2.7%, with 10.26 million shares done.
Builder Zelan Bhd has bagged a construction contract worth RM248.729 million, to construct a drawbridge connecting Muara North and Muara South in Kuala Terrengganu city centre.
In a filing with Bursa Malaysia today, the construction outfit said its wholly-owned unit, Zelan Construction Sdn Bhd, has received the letter of acceptance (LOA) from East Coast Economic Region Development Council (ECERDC).
The project site is located at two reclaimed areas on the north and south of the Terengganu River, Kuala Terengganu.
The 632-metre long and 23-metre wide bridge will link Kuala Terengganu city across the two land areas, until Sultan Mahmud Airport.
Earlier, Zelan had on last Thursday (July 24) clinched another contract worth RM248.49 million from Petronas Refinery and Petrochemical Corporation, to build a material off loading facilities jetty at Tanjung Setapa for Refinery and Petrochemical Integrated Development (Rapid) project, at Pengerang, Johor.
Telecommunications services provider Redtone International Bhd saw its net profit decline by 48% to RM7.9 million in fourth quarter ended May 31, 2014 (4Q FY14) — down from RM15.19 million a year ago, mainly due to lower data revenue.
The group’s revenue decreased 15.6% to RM37.34 million, from RM44.22 million a year before.
The ACE-Market listed Redtone, which aims to transfer to Main Market of Bursa Malaysia in 2015, also saw its full year profit drop 10% to RM22.59 million, from RM25.09 million.
Its revenue, however, grew 2% to RM144.83 million, from RM142.05 million.
In a press statement today, Redtone said that if it were not for delays in billing some of its projects, it would have posted a stronger net profit and revenue for FY14. The projects’ earnings contributions will now be recognized in FY15.
Property developer Hua Yang Bhd has set an ex-date for the final dividend of 7 sen apiece on Sept 29, 2014. The single-tier dividend is payable on Oct 15, subject to shareholders’ approval at the coming annual general meeting, which will be held on Aug 27.
Plantation firm Malpac Holdings Bhd’s plan to sell off its stake in Radiant Response Sdn Bhd, as well as to dispose a palm oil mill collectively at RM53.1 million, were rejected at the extraordinary general meeting today. About 99.96% of its shareholders voted against the resolution by way of poll.
Water meters manufacturer and construction group George Kent (M) Bhd is eyeing a re-entry into oil and gas industry.
Its chairman Tan Sri Tan Kay Hock reportedly said that the group had previously been in the oil and gas sector, where it was involved in the selling of valves and bar code pumps.
“Oil and gas is a very exciting industry, so we want to go into it as well, but we want to go into the right space, with the right targets,” he told the reporters after EGM.
Earlier at the meeting, shareholders gave George Kent the go-ahead to undertake a one-for-three bonus issue.