Stocks to watch: Naim, Kossan, HLS, AE Multi


Written by Joseph Chin
Thursday, 14 January 2010 08:05

KUALA LUMPUR: Asian markets are expected to continue to be cautious on Thursday, Jan 14 after the sharp fall on Wednesday which was triggered by China's move to tighten its monetary policy.

On Wall Street, US stocks rose on Wednesday as investors bet on recently weakened TECHNOLOGY [] and financial shares ahead of earnings from Intel Corp and JPMorgan Chase & Co, taking the Dow industrials to a fresh 15-month high.

The Dow Jones industrial average gained 53.51 points, or 0.50 percent, to 10,680.77. The Standard & Poor's 500 Index added 9.46 points, or 0.83 percent, to 1,145.68. The Nasdaq Composite Index rose 25.59 points, or 1.12 percent, to 2,307.90.

In Malaysia, Prime Minister Datuk Seri Najib Razak will deliver his keynote address at an economic forum this morning which should provide an update on the economic recovery.

In the afternoon, the government's investment agency, Khazanah Nasional will provide an update on its performance, which would be interesting following its move to reduce its stakes in government-linked companies especially PLUS EXPRESSWAYS BHD [] and TENAGA NASIONAL BHD [].

Stocks to watch include Naim Holdings, Kossan Rubber Industries, Hock Lok Siew and Dialog Group. Also on the list would be AE Multi, which was queried by Bursa Securities.

Kossan will ramp up 2010 production by 20% to 10.8 billion pieces to meet strong demand this year, says managing director Lim Kuang Sia.

The latex glove maker, which focuses on selling high-end surgical gloves to medical firms in the US, Europe and Japan, has received orders to last the first half of this year as countries boost healthcare expenditure to guard against the H1N1 flu pandemic.

Glove makers have showed they are resilient, as the stocks managed to close higher after coming under selling pressure earlier in the day.

NAIM HOLDINGS BHD []'s joint venture (JV), Sinohydro-Naim JV, has secured a RM209.11 million contract to undertake part of the transmission line projects for the Bakun-Similajau transmission system.

Hock Lok Siew Corporation has seen the entry of a new substantial shareholder. A1 Capital Sdn Bhd emerged as a substantial shareholder on Jan 7 when it acquired 7.4 million HLS shares, or an 8.1% stake in the company, in the open market.

Petra Perdana's shares should perk up after the compay said it had identified experienced supervisors and managers within the company to perform relevant job functions pending the appointment of the independent consultants.

In AE Multi, the compay said due to the change in the dynamics in the printed circuit boards industry, it will embark on an exercise to upgrade, improve its current production capabilities and explore new viable businesses to improve the company’s performance.

AE Multi also said the company has identified a placee for the 10% private placement at 50 sen which is 10% over the last closing price.

It has also negotiated with an interested party to provide funding for up to RM15 million for two years at an interest rate of 6% per annum subject to the funder having a right to convert debts or any part to equity at 55 sen, or a premium of more than 20% of current closing price.

Dialog Group expects to increase its profit after tax by 20% to 30%, for the current financial year.
Chairman Ngau Boon Keat said the company has been experiencing a steady growth of 30% annually in terms of profit over the years.