Stocks to Watch Vitrox, Coastal, QL, Pharmaniaga, JCY, plantations stocks, Talam, Selangor Dredging

Business & Markets 2014
Written by Jeffrey Tan of  
Thursday, 21 August 2014 20:31

KUALA LUMPUR (Aug 21): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (Aug 22) may include the following companies: Vitrox, Coastal, QL, Pharmaniaga, JCY, plantations stocks, Talam and Selangor Dredging.

Vitrox Corporation Bhd’s second quarter net profit soared 208% to RM19.99 million, from RM6.48 million a year ago, while revenue surged 129% to RM65.1 million.

The company attributed the significantly higher net profit to increase in revenue and economies of scale, adding that there was higher demand from customers, and strong business recovery in the semiconductor and electronics industries.

Meanwhile, Coastal Contracts Bhd also reported stellar results with second quarter net profit increased by 50.6% to RM48.23 million, while revenue jumped 69.4% to RM242.37 million.

"The strong performance was attributed to larger deliveries of newly-built offshore vessels, and an enhanced product mix comprising higher-specification and higher-value vessels," Coastal told the stock exchange in an announcement today.

QL Resources Bhd saw its net profit increase 15.42% to RM40.36 million in the first quarter ended June 30, 2014, underpinned by the lower losses from Indonesia's plantation operations and better crude plam oil (CPO) price. The higher profit contribution from associate Boilermech Holdings Bhd was also a factor.

As for revenue, it grew 12.8% to RM653.56 million, from RM579.64 million for the same quarter last year.

Pharmaniaga Bhd’s net profit soared 172% to RM15.9 million in the second quarter ended June 30, 2014, from RM5.9 million a year earlier.

The pharmaceutical product manufacturer attributed the strong performance on ‘favourable contributions from both concession and non-concession businesses’.

JCY International Bhd, manufacturer of hard disk drive (HDD) mechanical components, returned to profitability with net profit of RM25.03 million in its third quarter ended Sept 30, 2014 (3QFY14), from a net loss of RM12.83 million previously.

JCY’s filing with the stock exchange attributed the year-on-year rebound to bigger sales and improved efficiency.

Its revenue for 3QFY14 stood at RM452.63 million, representing a 12.68% rise from the previous corresponding quarter’s RM401.69 million.

Meanwhile, plantation stocks may continue to see a decline across the board, as weaker crude palm oil prices (CPO) prices hit market sentiment.

CPO prices touched a five-year low yesterday on several factors, which included a record harvest of rival crop soybean in the Americas, and a firmer ringgit versus the US dollar.

In terms of major shareholder movements, Talam Transformation Bhd may see activity, as Tan Sri Chan Ah Chye has entered into a memorandum of understanding (MoU) with Kumpulan Europlus Bhd (Keuro) to purchase 840 million shares or a 19.9% stake in Talam at 11 sen per share, which works out to RM92.4 million.

Selangor Dredging Bhd is planning to launch RM500 million worth of property development projects in Malaysia for the current financial year ending March, 2015, its chairman Eddy Chieng Ing Huong said today.

The property developer indicated it would launch residential development projects in Selangor.

These comprise a project in Taman Melawati which is scheduled for launch in November this year, and another in Sungai Buloh in early next year.