Stocks to Watch MAS, Brahim’s, PetGas, Icon, and rubber glove companies

accumulate supermax at RM 2.20 MA 20/MA 50 support level for Ebola Virus theme play???

Business & Markets 2014
Written by Ahmad Naqib Idris Adzman Shah of
Friday, 08 August 2014 20:20

KUALA LUMPUR (August 8): Based on corporate news and developments on last Friday, stocks that may garner interest today (August 11) may include the following:

Malaysian Airline System Bhd (MAS) shares will resume trading today after the announcement on last Friday that Khazanah Nasional Bhd is offering 27 sen per share through a selective capital reduction and repayment to take national carrier private.

MAS shares were last traded at 24 sen prior to the announcement.

In a statement Friday, Khazanah, which owns 69.37% of MAS, said it had submitted a formal request to MAS to undertake a selective capital reduction and repayment exercise, which will cost the government investment arm some RM1.38 billion.

Khazanah noted that subject to the necessary approvals from the relevant authorities, it would announce the proposed restructuring scheme within a period of 6 to 12 months.

“We reiterate that the proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier on all relevant aspects of, inter alia, the airline’s operations, business model, finances, human capital and regulatory environment,” said Khazanah.

Meanwhile, uncertainties arise on Brahim Holdings Bhd’s prospects as there are concerns that the restructuring in MAS would affect its catering contract to the national carrier.

An analyst said that it is “too early to tell” what impact the corporate exercise would have on Brahim’s operations. “It will depend on what the restructuring exercise will entail,” the analyst commented.

Another analyst said that the privatisation would not have much impact on Brahim’s, and had attributed the small slide in its share price to the weak market sentiment last Friday.

“Even though MAS will be privatised, Brahim’s business will still be operating as usual. The counter is most likely down due to the fall in the KLCI today,” said the analyst.

Rubber glove stocks such as Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd may be in the limelight, as the World Health Organisation (WHO) has declared the Ebola virus as an international health risk.

Reuters reported that the Geneva-based United Nations health agency said the possible consequences of further international spread of the outbreak, which has killed almost 1,000 people in four West African countries, are "particularly serious" in view of the virulence of the virus.

"A coordinated international response is deemed essential to stop and reverse the international spread of Ebola," the WHO said in a statement after a two-day meeting of its emergency committee on Ebola.

Astral Supreme Bhd has appointed Messrs CH International Advisory Sdn Bhd to conduct an investigative review on its financial statements for the financial years ended Dec 31, 2011, 2012 and 2013.

This is the second investigative review conducted by the company this year.

In a Bursa Malaysia filing this evening, Astral Supreme said: "The circumstances leading to the appointment of CH International is to carry out an investigative review on the financial statements of Astral Supreme for the past three financial years other than those performed by Messrs PKF Advisory Sdn Bhd for the financial year ended Dec 31, 2013".

Datuk Dr Yu Kuan Chon continues to accumulate more shares in Rapid Synergy Bhd.

The filing to Bursa Malaysia shows that Yu has bought additional 234,000 shares last Friday. He has been mopping up shares in Rapid Synergy on the open market lately.

Currently, the property tycoon holds a direct and indirect 26.42% equity stake in Rapid Synergy, a Penang-based precision tool manufacturer for the semiconductor industry.

Yu, the major shareholder of developer YNH Property Bhd, is known for his investment in Hong Leong Capital Bhd that had prevented the latter from being privatised by Hong Leong Financial Group Bhd last year.

The additional purchase in Rapid Synergy raised his total interest in the Penang-based firm, which manufactures precision tools for the semi conductor industry, to 22.49 million shares or 25.74% stake.

Rapid Synergy's share price has risen from around RM5.00 in the beginning of July to recent peak of RM6. It closed at RM5.97 today.

Petronas Gas Bhd (PGas) halved its net profit to RM435.26 million for its second financial quarter ended June 30, 2014, from RM944.94 million in the previous year’s corresponding quarter.

Revenue rose 18% to RM1.10 billion, from RM930.77 million in the year before.

The sharp fall on net profit was due mainly to the recognition of deferred tax assets arising from investment allowance granted for the liquified natural gas regasification terminal in the previous corresponding period. Excluding the exceptional item, PGas' net profit would be RM139.5 million, or 19.6%, higher.

For the six-month period ended June 30, PGas' net profit came in lower at RM853.27 million compared with RM1.31 billion in the same period the year before, while cumulative revenue rose 17% to RM2.16 billion from RM1.84 billion.

The group declared an interim dividend of 20 sen per share for the financial year ended Dec 31, 2014.

“The proposed disposal is expected to be completed by the end of third quarter 2014,” it said in an announcement to the exchange.

Icon Offshore Bhd announced that its wholly-owned subsidiary, Icon Ship Management Sdn Bhd has entered into a memorandum of agreement with Hadi Hamad Al-Hammam Est Marine Services to dispose of its vessel for a total cash consideration of US$3.88 million (RM12.4 million).

The group said that the disposal is in line with the company’s fleet renewal programme, where it intends to replace some of its lower specification vessels with better ones.

“The proposed disposal is expected to be completed by the end of third quarter 2014,” it said in an announcement to the exchange.


Are you accumulating Supermax? i just dispose all of them on Friday :( how do you think the movement of supermax as compare to other glove stock?