Stocks To Watch AirAsia X, Takaso Resources, Ideal Sun City, Matrix Concepts, TH Plantations, and Uchi Technologies

Business & Markets 2014
Written by Liew Jia Teng of  
Tuesday, 19 August 2014 21:30

KUALA LUMPUR (Aug 19): Based on news flow and corporate announcements today, the stocks that may be in focus on Wednesday (Aug 20) could include: AirAsia X, Takaso Resources, Ideal Sun City, Matrix Concepts, TH Plantations, and Uchi Technologies.

Long-haul low-cost carrier AirAsia X Bhd saw its net loss widened by almost 300% to RM128.79 million in the second quarter ended June 2014 (2Q FY14), from RM32.3 million a year ago, due to higher operating expenses.

The airline’s revenue, however, increased 36.7% to RM671.61 million from RM491.14 million.

AirAsia X told the stock exchange that its operating expenses increased by 59.1% to RM807.3 million in 2Q FY14, due to higher aircraft fuel costs, aircraft operating lease expense, as well as other operating expenses.

For the six months period, AirAsia X made a net loss of RM140 million, compared to a net profit of RM17.89 million a year before. The group’s revenue rose 38.5% to RM1.42 billion, from RM1.03 billion.

The controlling shareholders of construction firm Pesona Metro Holdings Bhd has recently surfaced as the largest shareholder in Takaso Resources Bhd, acquiring up to 20.04% stake in the babycare accessories and condoms manufacturer.

Wie Hock Beng and Wie Hock Kiong, who are also the managing director and non-independent, non-executive director of Pesona Metro respectively, have been steadily acquiring shares of Takaso Resources from the open market through their combined vehicles Kombinasi Emas Sdn Bhd and Sincere Goldyear Sdn Bhd since Aug 12, according to filings to Bursa Malaysia.

Meanwhile, Bursa Malaysia has issued an unusual market activity (UMA) on Ideal Sun City Holdings Bhd over the unusual rise in its share price recently.

Shares of Ideal Sun City surged 185% in just three months, from 27.5 sen (May 7, 2014) to 78.5 sen yesterday (Aug 18).

The market regulator directed the ACE Market-listed outfit to issue a statement for public release after making due enquiry with its directors and major shareholders on the cause of the UMA in the company’s shares.

At press time, the company has yet to reply to the query.

Worth noting is that the Penang-based Ideal Sun City has regularised its financial condition and exited the Guidance Note 3 on May 7, 2014.

Subsequently, an individual investor from Penang, Lim Tek Lin, has emerged as its substantial shareholder, after acquiring 14.88 million shares via private placement and subscription of rights shares at 10 sen a piece or RM1.488 million.

At the closing price of 78.5 sen yesterday, Lim’s 10.52% stake in Ideal Sun City is worth some RM11.68 million.

Seremban-based property developer Matrix Concepts Holdings Bhd saw its net profit grew 41% to RM42 million in second quarter ended June 2014 (2Q FY14), from RM30 million a year ago, thanks to the higher sales of residential and industrial properties. Its revenue grew 11% to RM163.7 million, from RM147.3 million a year before.

The group declared a second interim single-tier dividend of 3.75 sen per share for financial year ending December 2014 (FY14), payable on Oct 16. The ex-date has been set on Sept 26.

For the six months period, Matrix Concepts generated net profit of RM81 million, an increase of 6.5% from the previous corresponding period.

Matrix Concept’s CEO Datuk Lee Tian Hock, had on Aug 18, donated 5 million of his own shares to Sekolah Menengah Chung Wah in Port Dickson. The 1% stake is worth some RM16 million.

Lee still owns an 18.65% direct stake, as well as 24.82% indirect stake in Matrix Concepts.

Oil palm and rubber plantation firm TH Plantations Bhd saw its net profit jumped nearly 184% to RM20.15 million in the second quarter ended June 2014 (2Q FY14), from RM7.1 million a year ago, due to higher other income and stronger operational performance.

The group’s revenue increased 38% to RM132.6 million, from RM95.8 million a year earlier, mainly driven by a 5% growth in production of fresh fruit bunches while its crude palm oil production grew by 14%.

For the six months period, TH Plantations’ net profit grew 150% to RM25.8 million, from RM10.3 million the preceding year. Its revenue also increased 38.6% to RM256.8 million, from RM185.3 million.

Uchi Technologies Bhd, which is involved in original design manufacturing (ODM) of electronic control systems, saw its net profit grew 22.6% to RM10.46 million in the second quarter ended June 2014 (2Q FY14), up from RM8.53 million a year ago.

However, the group’s revenue declined by 8.8% to RM23.18 million, from RM25.41 million.

For the six months period, Uchi Technologies’ net profit grew 21.2% to RM20.61 million from RM17 million a year before. Its revenue dropped 6.9% to RM46.24 million from RM49.68 million.