I LIKE KULIM.
Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 23 June 2014 19:27
KUALA LUMPUR (June 23): Based on news flow and corporate announcements today, the stocks that might be in focus tomorrow (June 24) could include:
Plantation Stocks may continue to be in the limelight as Malaysian palm oil futures rose to a near one-month high today, tracking firm soyoil markets and as expectations of Ramadan-linked demand and rising crude prices supported.
The benchmark September contract on the Bursa Malaysia Derivatives Exchange closed up 1.7 percent, at 2,483 ringgit ($770) per tonne today. Earlier, prices touched 2,488 ringgit, their highest level since May 29, Reuters reported.
Brent crude was up at around $115 a barrel, supported by worries about potential disruptions to supply from Iraq, where Sunni insurgents took control of strongholds along the border with Syria at the weekend.
Militants from the Islamic State of Iraq and the Levant seized three towns in Iraq's western Anbar province after taking control of two frontier crossings on the Iraq-Syrian border at the weekend.
SCGM Bhd announced that its FY2014 net profit rose 45% to RM11.53 million from RM7.95 million a year ago, and declared a dividend of 10 sen per share -- doubling its previous year’s dividend of 5 sen.
Revenue for the full year to April 2014 rose 3.5% to RM100.3 million from RM96.89 million a year ago.
Net profit for the fourth quarter rose 36% to RM2.5 million from RM1.8 million in the previous corresponding quarter. Revenue for the fourth quarter rose 5.2% to RM 23.79 million from RM22.61 million.
The company attributed its stronger bottom line to sales growth on continued strong demand for its products in the food sector and improved operating efficiency.
On prospects, the company said its performance is likely to be further boosted by the commencement of a new plastic cups plant before the end of 2014.
Sentoria Bhd announced that its wholly-owned subsidiary, Sentoria Bina Sdn Bhd, has been awarded the main contract for the main building and infrastructure works for the Pembangunan Perumahan Rakyat 1Malaysia (PRIMA) worth RM80 million.
The proposed project will be located on 32.04ha (79.185 acres) of government land in Kuantan, Pahang, and will consist of 612 units of single storey semi-detached houses, 1 unit of single story bungalow and 16 units of single story shop lots.
The project will commence on July 1, 2014, and is expected to be completed by Dec 31, 2016.
“The board is of the view that the letter of award will contribute positively towards the Sentoria group’s future earnings and net assets of the group,” said the group in its statement.
Sime Darby Bhd is buying over a Thailand-based edible oil firm for THB815 milion (RM80.4 million) to expand its presence in the Indochina region.
Sime Darby said it was buying 99.9995% in Industrial Enterprises Co Ltd from Sub Sri Thai Public Co Ltd. Industrial Enterprises is involved in the crushing, refining and distribution of edible oils.
"The proposed acquisition is part of Sime Darby group’s expansion plan into the greater Mekong sub-region. The acquisition is expected to be completed by the middle of July 2014," Sime Darby said.
Cahya Mata Sarawak Bhd (CMSB) announced that its cement division has signed an engineering, procurement and construction (EPC) agreement with Christian Pfeiffer Maschinenfabrik GmbH (CPB) of Germany for a new cement grinding plant in Sarawak.
The construction of the plant is expected to commence in July 2014, with completion within 18 to 21 months.
“Our investment in a third cement grinding plant will increase our total cement installed capacity by 57% to 2.75 million metric tonnes (MT) per annum,” said Group Managing Director Datuk Richard Curtis.
The new integrated grinding plant will have an annual rated production capacity of 1 million MT, enabling the group to mitigate any production disruptions due to maintenance work or technical malfunction.
Christian Pfeiffer is a German company specialising in grinding processes involving cement, coal and minerals.
Perdana Petroleum Bhd (PPB) signed a memorandum of agreement with Nam Cheong Ltd for the construction and supply of two 500-man accommodation work barges, with the option for two more units.
Speaking to press after the signing ceremony today, PPB managing director Capt Surya Hidayat said these would be the largest vessels to be built by Nam Cheong [in terms of size], valued for a total of US$84 million.
"They are expected to be delivered to us in the first and second quarter of 2016. The purchase is to be financed by internal funds and bank borrowings," he said.
"At the moment there is no contract for the barges, so it is difficult for us to say how much revenue we can expect it to generate," he added.
PPB's current order book is RM1.3 billion, which is expected to last them for the next three to five years.
Hong Leong Bank Bhd has raised funds via a ringgit issuance of subordinated notes worth RM500 million with maturity date of 10 years from the date of issue.
The bank said the issuance of Islamic bonds comes under its multi-currency sub-notes programme of up to RM10 billion or its equivalent in other currencies in nominal value.
Hong Leong Bank said the sub-notes are callable by the bank on any coupon payment date falling on or after the fifth anniversary of the issue date.
It said a semi-annual coupon of 4.80% per annum is payable on the sub-notes.
The sub-notes are rated AA2 by RAM Rating Services Bhd and qualify as Tier 2 capital of the bank.
Suria Capital Holdings Bhd has been appointed by the Sabah state government as the sole jetty manager at the Sipitang Oil and Gas Industrial Park.
Suria said its wholly-owned unit Sabah Ports Sdn Bhd has signed a memorandum of understanding (MOU) with Sabah government entity Sipitang Oil and Gas Development Corp Sdn Bhd (SOGDC).
"The MOU shall take effect from the date of 23rd June 2014 and shall be valid for a period of five (5) years unless otherwise terminated in accordance with the terms of the MOU," Suria said.
CB Industrial Product Holdings Bhd (CBIP) announced that it has secured a contract worth RM18.79 million to supply engineering equipment.
The contract was signed with its unit Modipalm Engineering Sdn Bhd and is for the supply of equipment and start-up services for a palm oil mill in Guatemala.
“The agreement is expected to contribute positively to the earnings of CBIP Group for the financial year ending 31 December 2014,” said the announcement.