Stocks To Watch MMHE, Axis REIT, Tasek, WZ Satu, PNE PCB, Protasco

Business & Markets 2014
Written by Liew Jia Teng of  
Tuesday, 05 August 2014 22:30

KUALA LUMPUR (Aug 05): Based on news flow and corporate announcements today, the stocks that may be in focus on Wednesday (Aug 06) could include Malaysia Marine and Heavy Engineering (MMHE), Axis Real Estate Investment Trust (Axis REIT), Tasek, WZ Satu, PNE PCB and Protasco.

Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) saw its net profit decline by 16.4% to RM39.73 million in second quarter ended June 30, 2014 (2Q FY14) — down from RM47.55 million a year ago. The group’s revenue however, grew 24.7% from RM786.72 million to RM980.92 million.

In a filing with Bursa Malaysia today, MMHE said the declining profit in 2Q FY14 was due to lower income registered from its offshore oil and gas structure construction, as well as ship repair units.

MMHE’s cumulative first-half net profit also dropped 24.2% to RM74.36 million, from RM98.15 million a year before. Revenue was lower 3.5% at RM1.65 billion, compared with RM1.71 billion.

MMHE is 66.5%-owned subsidiary of MISC Bhd.

Shares of MMHE were unchanged at RM3.50 today, with 432,600 shares done.

Meanwhile, share price of MISC went up 6 sen or 0.9%, closing at RM6.68 with 452,000 shares traded.

Axis Real Estate Investment Trust (Axis REIT) plans to expand its assets under management (AUM) by 27.36% to RM2.02 billion by the end of this year, up from RM1.586 billion as at June 30, 2014.

According to Datuk Stewart LaBrooy, chief executive officer of Axis-REIT Managers Bhd which manages Axis REIT, the property trust plans to acquire five assets in the second half of this year.

Axis REIT had yesterday (Aug 04) proposed to acquire three properties for RM280.5 million in cash. The three Selangor properties, dubbed Axis Shah Alam DC3, Axis MRO Hub and Axis Shah Alam DC2, would enable the group to diversify and enlarge its portfolio of properties.

On top of that, the REIT has also signed two letters of offer to buy two industrial facilities, one each in Johor and Penang, LaBrooy told the reporters after Axis REIT’s results briefing today.

The two properties have a combined purchase price of RM191.5 million, and the acquisition will be funded by borrowings.

In 2014, the total assets being acquired by Axis REIT is RM472 million.

Cement producer Tasek Corp Bhd saw its net profit grow by 42.5% to RM31.1 million in second quarter ended June 30, 2014 (2QFY14), up from RM21.82 million a year before.

The group’s revenue grew 20.8%, from RM142 million to RM171.5 million, mainly due to the increasing demand for cement in the domestic market.

For the first six months, Tasek’s net profit also increased by 28.7% to RM56.02 million, from RM43.53 million.

The group’s revenue was higher at RM334.41, compared with RM278.09 million, thanks to the improved pricing and strong market demand.

Tasek declared an interim single tier dividend of 40 sen, payable on Sept 09, 2014. The ex-date is set on Aug 18 this year.

WZ Satu Bhd, formerly known as WZ Steel Bhd, has bagged a contract worth RM30.018 million to construct an interchange at existing Federal Route 3, Kuantan, Pahang.

The group told Bursa Malaysia today that its wholly-owned unit, WZS KenKeong Sdn Bhd, has received the letter of award from Laksana Amanbina Sdn Bhd. The project is expected to be completed within fifteen months.

The contract will have no material effect on the revenue or earnings of the group for the financial year ending Aug 31, 2014 (FY14). However, it is expected to contribute positively to its future earnings and net assets per share in FY15.

Small printed circuit boards manufacturer PNE PCB Bhd, saw Credit Suisse Securities (Europe) Ltd emerge as its new substantial shareholder.

PNE PCB told the stock exchange today that the London-based Credit Suisse Securities has on July 31 (last Thursday), made the open market investment by acquiring 3.745 million shares or some 5.7% direct stake.

Following the acquisition, the Swiss-based Credit Suisse Group AG also has deemed interest of 5.7% in PNE PCB.

Infrastructure development provider Protasco Holdings Bhd’s plan to acquire 63% stake in PT Anglo Slavic Indonesia from PT Anglo Slavic Utama, has been called off.

Protasco told Bursa Malaysia that the conditions of the restated sales and purchase agreement (SPA) have not been fulfilled by Anglo Slavic Utama and the security provider, within the timeframe.

Hence, the restated SPA lapsed on July 28, 2014.

Protasco is now in discussion with the vendor for the purchase price to be returned through cash, as well as secured shares.

To recap, Protasco had on Jan 30 this year, signed the restated SPA with Anglo Slavic Utama, to acquire 8.75 million shares or 63% stake in Anglo Slavic Indonesia from the latter.