Stocks to Watch Scomi, Tenaga, CIMB, TMC, SPK-Sentosa, Daya Materials, Digistar, Faber

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Saturday, 26 January 2013 11:45

KUALA LUMPUR (Jan 26): Based on Bursa Malaysia announcements and news flow over the weekend, stocks to watch this Tuesday include SCOMI GROUP BHD [], TENAGA NASIONAL BHD [], CIMB Group Holdings Bhd, TMC LIFE SCIENCES BHD [], SPK-Sentosa Corp Bhd, DAYA MATERIALS BHD [] , Digistar Corp Bhd, FABER GROUP BHD [].

Scomi may be on investors radar after Petroliam Nasional Bhd (Petronas) aborted the award for the Tembikai and Chenang small-field risk service contract (RSC) following speculation on the oil and gas project.

Petronas said in a statement on Friday that although it had called for tenders for the RSC last year, the national oil firm has now decided not to go ahead with the award.

Tenaga shares may get a boost from a report that Standard & Poor's Ratings Services has upgraded the rating outlook on the state-owned utility to stable from negative.

The rating agency said over the weekend: “We revised the outlook on Tenaga to stable to reflect our expectation that government support will remain until Petronas improves its gas supply to the utility company.

“This support will limit any serious deterioration in Tenaga's significant financial risk profile and mitigate higher fuel costs and debt-funded investments in the next two years."

Meanwhile, The Edge, quoting sources, reported that CIMB is reviving its dual-listing plan in Thailand after postponing the exercise twice since announcing it in 2009.

According to the report, bankers are working on the exercise which will involve the issuance of up to 100 million new CIMB shares. The exercise is scheduled to take place this year, the report indicated.

The weekly newspaper also reported that TMC Life Sciences Bhd is poised to add another hospital worth S$200 million (RM495 million) into its stable within Johor’s Iskandar Malaysia enclave.

According to The Edge which quoted industry executives , TMC’s single-largest shareholder, Singapore billionaire Peter Lim may place under TMC a 200-bed hospital within Iskandar to expand TMC’s market reach.

TMC’s website indicates that the company already owns the 180-bed Tropicana Medical Centre in Kota Damansara, Selangor.

Meanwhile, SPK-Sentosa told Bursa Malaysia on Friday the builder had signed a concession agreement with the government and Universiti Malaysia Perlis allowing SPK-Sentosa to develop and maintain student hostel blocks in Perlis.

The 20-year concession involves a development cost of RM143.07 million which will be fully borne by SPK-Sentosa, the company said.

Daya Materials announced that the CONSTRUCTION [] firm had secured a RM228 million project from B Braun Medical Industries Sdn Bhd. The job involves the extension of the latter's manufacturing facility in Bayan Lepas, Penang.

According to Daya Materials, B Braun had also issued a letter of intent for standing order to the former to undertake approximately RM75 million worth of jobs for the facility.

Digistar may attract market interest after the broadcast system provider said its 80%-owned subsidiary Digistar Rauland MSC Sdn Bhd has received three licences from the Malaysian Communication and Multimedia Commission.

The three licences allow Digistar to provide network facilities and services, besides content-applications service.

Faber may come into investors' radar after the hospital support-services provider said the government has in principle agreed to extend the company's concession in the northern region of Peninsular Malaysia covering Perak, Penang, Kedah and Perlis for 10 years.

The concessionaire's contracts in Sabah and Sarawak has also been renewed for a similar duration, according to Faber.