Stocks to Watch MBSB, Hibiscus, PDZ, KLK, PPB, Reach Energy, Media Prima


Business & Markets 2014
Written by Foo Yen Ne of   
Thursday, 14 August 2014 20:34
KUALA LUMPUR (Aug 14): Based on news flow and corporate announcements today, stocks in focus tomorrow (Aug 15) could include the following companies: MBSB, Hibiscus, PDZ, KLK, PPB, Reach Energy and Media Prima.

Malaysia Building Society Bhd’s (MBSB) net profit rose 41% to RM232.9 million in the second quarter ended June 30, 2014, from RM165.1 million a year earlier. Revenue grew 9% to RM672.1 million, from RM614.3 million.

For the six-month period, MBSB said net profit was higher at RM429.6 million versus RM331.2 million a year earlier, while revenue climbed to RM1.34 billion from RM1.18 billion.

Hibiscus Petroleum Bhd announced plans to apply for more operating rights in Norway’s upstream oil and gas industry.

Lime Petroleum Norway AS (Lime Norway), Hibiscus’s 35%-owned associate, plans to submit applications for new licenses under the the pre-defined areas (APA) programme by Sept 02, 2014.

Hibiscus said results for the applications would be announced in the first quarter of 2015.

Shipping firm PDZ Holdings Bhd has denied reports suggesting it was in discussion with certain parties to acquire assets and undertake corporate exercises in Indonesia and Malaysia.

PDZ clarified that asset acquisitions and fund raising exercises, including a rights issue, were part of the company’s business plan formulated in general terms.

Notwithstanding, the company said it was keen to explore potential acquisitions or exercises that would enhance shareholder value, with Asia Pacific being a key market for the company.

Shares of oil palm plantation companies like Kuala Lumpur Kepong Bhd and PPB Group Bhd may be closely watched. This is in anticipation that a larger supply of rival crop soybean in the US, and a firmer ringgit versus the US dollar, would hurt palm oil prices.

Reuters reported that Malaysian palm oil futures slid to touch a near five-year low on Thursday, following losses in overseas soy markets, and further dragged by forecasts of abundant supply of competing oilseeds, alongside an expected surge in Southeast Asian palm output.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell to 2,133 ringgit in early trade — its lowest since Oct 29, 2013, before settling 1.5 percent down at 2,143 ringgit ($674) per tonne by the midday break.

The stronger ringgit also added on pressure to the tropical commodity, making the locally-priced feedstock more expensive for overseas buyers and refiners. The Malaysian ringgit rose as much as 0.6 percent to 3.1745 per dollar on Thursday — its strongest since July 25. 

Reach Energy Bhd could be watched closely, as the special purpose acquisition company (SPAC) makes its debut on Bursa Malaysia tomorrow morning.

The SPAC had earlier aimed to raise RM750 million from its initial public offering (IPO).

The IPO comprises one billion new shares at 75 sen each, and a similar number of free detachable warrants on the basis one warrant for one share.

Reach Energy had earlier said that it would acquire its first oil and gas asset in the Asia-Pacific, within one to two years.

Media Prima Bhd reported that net profit fell 40.4% to RM35.8 million in the second quarter ended June 30, 2014 (2QFY14), compared to RM60.1 million in the previous year’s corresponding quarter.

Revenue declined 16.7% to RM388.6 million, from RM466.3 million. Despite the poorer 2QFY14 results, Media Prima declared its first interim single-tier dividend of three sen a share, during the quarter.

Media Prima said that the environment had been very challenging for the media industry as a whole.

Consequently, the company's first half top and bottom lines also fell. Media Prima recorded a net profit of RM62.8 million versus RM87.2 million in the previous corresponding period, while revenue came to RM742.7 million from RM832.1 million.