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Written by Joseph Chin of theedgemalaysia.com
Thursday, 19 May 2011 06:11
KUALA LUMPUR: Stocks which could see trading interest on Thursday, May 19 include TSH RESOURCES BHD [], TAN CHONG MOTOR HOLDINGS BHD [], ENCORP BHD [] and JCY International Bhd.
Investors could also be cautious after the country’s economy grew at a slow pace of 4.6% in the first quarter of 2011 compared with the 4.8% in the fourth quarter of 2010.
Investors’ concerns would also be the rising inflationary pressure, with the April Consumer Price Index (CPI) up 3.2% from a year ago and rising by 0.2% from March on higher food prices and non-alcoholic beverages. MIDF Research said the 1Q2011 real GDP growth of 4.6% on-year was marginally higher than its forecast of 4.5% but below consensus of 4.8%.
“Going forward, we expect the economic momentum to gain,” it said. The growth would be underpinned by continuous support from domestic demand primarily private consumption on the back of favourable labor market conditions, positive consumer sentiments and continued income growth; pick-up in private investment with the implementation of ETP, 10MP and high capacity utilisation; continued positive impetus from exports; and low base comparison in 2H2011.
As for the corporate results, TSH reported its 1Q2011 earnings surged 105% to RM23.95 million from RM11.26 million a year ago boosted by its Indonesian palm oil operation where fresh fruit bunches (FFB) production grew by 48%.
Revenue rose 5.04% to RM252.59 million from RM240.47 million while earnings per share were 5.84 sen compared with 2.75 sen.
Auto player Tan Chong Motor Holdings Bhd’s net profit rose 14.5% to RM74.08 million in the first quarter ended March 31, 2011 from RM64.67 million a year ago, boosted by the sale of its Nissan Teana.
Revenue increased by 29.8% to a record high of RM1.13 billion from RM870.36 million. Earnings per share were 11.35 sen from 9.91 sen a year ago.
Property-based Encorp Bhd swung into the red in the first quarter ended March 31, 2011 with net losses of RM378,000 compared with net profit of RM246,000 a year ago.
The losses were despite a 33% increase in revenue to RM63.35 million from RM47.63 million. Loss per share was 0.17 sen compared with earnings per share of 0.12 sen.
DUTCH LADY MILK INDUSTRIES BHD []’s net profit for the first quarter ended March 31, 2011 rose 36.2% to RM28.34 million from RM20.81 million a year earlier, due mainly to higher sales, favourable sales mix and cheaper carry-over stocks.
Revenue for the quarter rose to RM196.64 million from RM170.45 million in 2010. Earnings per share were 44.28 sen while net assets per share was RM3.53.
It declared a special gross interim dividend of 30 sen per share in respect of the financial year ending Dec 31, 2011 to be paid on July 1.
Hard disk drive manufacturer JCY International Bhd’s net profit for the second quarter ended March 31, 2011 slumped 81% to RM12.46 million from RM65.88 million a year ago.
The decline in earnings were due mainly to increase in the cost of production resulting from increase in the cost of raw materials like aluminium and stainless steel and also increase in labour cost.
JCY’s revenue for the quarter fell 27.7% to RM397.43 million from RM549.69 million. Earnings per share were 0.61 sen while net assets per share was 43.08 sen.
For the six months ended March 31, JCY’s net profit tumbled to RM19.97 million from RM143.36 million, while revenue fell to RM836.34 million from RM1.08 billion in 2010
