Stocks to Watch Bursa Malaysia, DiGi, CMMT, Pavilion REIT, Boustead, Digistar, Perisai

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 17 July 2014 19:34

KUALA LUMPUR (July 17): Based on newsflow and corporate announcements today, the following stocks may garner interest tomorrow (July 18):

Bursa Malaysia Bhd reported a 15% fall in second quarter net profit from a year earlier as securities and derivative income declined. Higher staff cost and information technology maintenance expenses also curbed profit growth.

Bursa said net profit fell to RM46.85 million for the quarter ended June 30 (2QFY14) from RM54.82 million. Revenue dropped to RM123.15 million from RM130.35 million.

For the six-months ended June 30, its accumulative net profit fell to RM92 million from RM93.02 million a year earlier while revenue, rose to RM246.32 million from RM240.79 million. Despite the lower 2QFY14 profit, the stock exchange said it planned to pay total dividends of 36 sen per share during the quarter.

DiGi.com Bhd’s net profit jumped 31% to RM498.91 million for its second quarter ended June 30, 2014, from RM380.01 million in the preceding year’s same quarter.

Revenue for the quarter rose 6% year-on-year (y-o-y) to RM1.75 billion from RM1.65 million.

The group announced a second interim dividend payment of 6.4 sen per share. The ex-date for the dividend is August 8, 2014 while its payment date is on Sept 5, 2014.

For the six months to June 2014, net profit rose to RM984.07 million from RM708.66 million the previous year’s corresponding period, while revenue increased to RM3.46 billion from RM3.30 billion.

CapitaMalls Malaysia Trust (CMMT) reported net profit of RM104.88 million for its second quarter ended June 30, 2014, falling 8% from RM114.28 million in the preceding year’s corresponding quarter.

Meanwhile, revenue for the quarter rose to RM78.22 million from RM74.55 million in the previous year.

For the six months to June 30, net profit fell to RM143.07 million from RM150.13 million in the previous corresponding period, while cumulative revenue rose to RM157.20 million from RM148.94 million.

CMMT announced an income distribution of 4.53 sen per unit in respect of the period from Jan 1, 2014, to June 30, 2014.

Pavilion Real Estate Investment Trust (REIT) said its net profit rose 7% to RM55.64 million for its second quarter ended June 30, 2014, from RM51.96 million in the previous year’s same quarter.

Revenue for the quarter rose 8% year-on-year to RM98.68 million, from RM91.10 million.

For the six-month period to June 30, net profit rose to RM112.27 million from RM106.23 million, while revenue rose to RM199.89 million from RM185.86 million.

The REIT declared an interim income distribution of 3.84 sen per unit for the financial yearending Dec 31, 2014.

Boustead Holdings Bhd said its subsidiary, Boustead Naval Shipyard Sdn Bhd (BNS), has signed a contract worth RM9 billion to manufacture and deliver six units of the second generation patrol vessels with littoral combat ship capability for the Royal Malaysian Navy (RMN) today.

The contract is expected to be implemented over three Malaysian plans until Dec 28, 2021, with delivery of the first of class ship estimated in 2017, and followed by delivery every six months thereafter.

To recap, BNS first received a letter of acceptance from the Ministry of Defence Malaysia–acting on behalf of RMN–on Dec 16, 2011. The letter was amended and reissued to BNS on October 1, last year.

The ministry had stated in the letter that it would make advance payment of RM700 million in stages to BNS, which Boustead said would “contribute positively” to its future earnings.

Digistar Corp Bhd announced that its 80%-owned subsidiary, Digistar Rauland MSC Sdn Bhd has signed a memorandum of understanding (MOU) with DiGi Telecommunications Sdn Bhd, to provide a security solution with its Internet Protocol-based CMS Surveillance Platform, Panther 911.

“The MOU is not expected to have any material effect on the issued and paid-up share capital, net assets and earnings of Digistar Group for the financial year ending 31 September 2014 as the Data Plans will commence in the 4th Quarter of 2014.

“However, the MOU is expected to contribute positively for the financial year ending 31 September 2015,” said the company.

Perisai Petroleum Teknologi Bhd’s offshore drilling facilities will contribute 60% of revenue within three years, according to managing director Zainol Izzet Mohamed Ishak. Izzet said Perisai intended to narrow its focus on drilling and production as it would let go of its pipe-laying business.

Following the launch of Perisai's maiden jack-up drilling rig Perisai Pacific 101, Zainol Izzet was hopeful the firm would return to the black by the second half of current financial year ending December 31. He said the rig would begin contributing to the company’s revenue by August 2014.