Stocks to Watch Axis REIT, Chin Well, Bumi Armada, CIMB, Hartalega

KUALA LUMPUR (April 16): Malaysia's stock market benchmark could take the cue from external factors on Tuesday as global economic headwinds take centre stage in a still-fragile macro landscape.

Analysts said dynamics across the US, China and European countries will be closely watched as investors assess the impact from these major importing nations on world financial markets.

In Malaysia, it will be interesting to see whether domestic funds could offer adequate support to the FBM KLCI against a still-volatile global backdrop which have thrown most Asian indices into the red.

The FBM KLCI of 30 stocks fell 5.61 points to close at 1,597.51 on Monday.

Stocks to watch on Tuesday include Axis Real Estate Investment Trust (Axis REIT), Bumi Armada Bhd, CHIN WELL HOLDINGS BHD [], CIMB Group Holdings Bhd, and HARTALEGA HOLDINGS BHD [].

Axis REIT's first quarter net profit rose 27% from a year earlier, as a higher top line and a revaluation surplus mitigated the impact of higher expenses. In a statement to the exchange on Monday, Axis REIT said its net profit came to RM20.96 million in the quarter ended March 31, 2012 versus RM16.49 million previously while revenue was up 18% to RM32.29 million from RM27.25 million.

Bumi Armada will offer oil and gas support services to Russia-based OAO Lukoil in a deal worth an estimated U$200 million (RM614 million). In a statement to Bursa Malaysia on Monday, Bumi Armada said the job includes engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Caspian Sea.

Chin Well, a screw and bolt manufacturer, plans to pay a tax-exempt interim dividend of 2% for the financial year ending June 30, 2012.

Reuters reported that CIMB will enter into an agreement to acquire a controlling 60% stake in the Philippines-based conglomerate San Miguel Corp's unlisted banking arm "soon", quoting a senior board member. The deal will allow San Miguel — the Philippines's most diverse conglomerate — to keep a minority stake in the unlisted bank while focusing on its new ventures such as power, mining, telecoms, infrastructure, and more recently, airlines.

RHB Research Institute Sdn Bhd has slashed its net profit forecast for Hartalega, a nitrile glove manufacturer, by between 6.1% and 18.5% for financial years 2012 till 2014. The research house said it has taken into account the glove manufacturer's lower capacity utilisation, and average selling prices apart for costlier raw material and higher net interest expenses.



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Stocks to watch: Ingress, Sunway, Yinson, Chin Well

KUALA LUMPUR (Dec 25): The FBM KLCI goes into the final trading week of 2011 on Tuesday, Dec 27 in what has been an eventful and volatile year for global equity markets, during which period investor confidence has taken a severe beating.

Also, many market participants are reluctant to believe in a "Santa Claus rally" this year, which refers to stocks' seasonal tendency to gain in the final five trading days of the year and first two trading days of the New Year, according to Reuters.

Warnings from major credit rating agencies on a potential downgrade of several European nations have kept investors on edge. After Standard & Poor's surprised financial markets back in August with a downgrade of the United States' triple-A credit rating on a Friday evening, investors worry a similar move could come at any time - even between Christmas and New Year's, it said.

Among the stocks that could be in focus on Tuesday are INGRESS CORPORATION BHD [], SUNWAY HOLDINGS BHD [], Yinson Holdings and CHIN WELL HOLDINGS BHD [].

Ingress has received a letter of acceptance from Perusahaan Otomobil Nasional Sdn Bhd (Proton) with a total value of RM84.8 million over a period of five years to supply parts for new Proton models.

Sunway’s unit has secured a contract worth RM27.57 million from Hap Seng Land Development (JTR) Sdn Bhd for the CONSTRUCTION [] of pilings, basement and ground floor for one block of 43-storey service apartment at Jalan Tun Razak, KL.

Yinson net profit for the third quarter ended Oct 31, 2011 jumped to RM8.07 million from RM2.5 million a year earlier, due mainly from its marine transport business and gain on disposals of subsidiary and PROPERTIES [].

Meanwhile, Chin Well expects to sustain overseas revenue contribution going forward, and focus on expanding its market share in Europe as well as emerging Asia and North America, said its managing director Tsai Yung Chuan.

He said whilst the company would take advantage of the European Union’s (EU) listing of Chin Well as one of the 8 Malaysian companies exempted from import duty, it will not ignore markets in emerging Asia as well as North America.

Tsai said that over the years, the company had exported to an increasing number of countries in Europe, Asia, and North America, and more than doubled its overseas revenues to about RM400 million in just 5 years.



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Chin Well expects to sustain overseas revenue stream, says MD

KUALA LUMPUR (Dec 23): CHIN WELL HOLDINGS BHD [] expects to sustain overseas revenue contribution going forward, and focus on expanding its market share in Europe as well as emerging Asia and North America, said its managing director Tsai Yung Chuan.

He said whilst the company would take advantage of the European Union’s (EU) listing of Chin Well as one of the 8 Malaysian companies exempted from import duty, it will not ignore markets in emerging Asia as well as North America.

The manufacturer of carbon steel fasteners exports its screws, bolts, and nuts to 39 countries in 5 continents.

Tsai said that over the years, the company had exported to an increasing number of countries in Europe, Asia, and North America, and more than doubled its overseas revenues to about RM400 million in just 5 years.

“Our market development strategy has indeed solidified the group’s position as the leading player in Malaysia and South East Asia,” he said in a statement Friday.

Tsai said Chin Well’s export revenues contributed about 78% to the Group’s revenue of RM502.6 million in FY2011, versus 56% in FY2006.

He said the company intended to increase our man-hour capacity, in addition to improving our cost efficiency to maintain price competitive as part of developing its new markets.

Chin Well’s total workforce currently stands at 1,080 in both facilities in Bukit Mertajam, Penang, and Nhon Trach District, Vietnam.

Tsai said the company plans to increase the workforce by 10% in the current financial year in order to cope with the increased demand for fasteners.

He said the company did not expect heavy investment in capital expenditure in the near term, since it had ample production capacity in both facilities in Penang and Vietnam, both of which were operating at about 60% utilisation rates.

In July 2011, the EU listed Chin Well as one of eight Malaysian fastener manufacturers exempt from the 85% anti-dumping duty for exports to Europe, in an attempt to circumvent transhipment of China-made fasteners through Malaysia-based fastener producers.

The EU had earlier in January 2009 imposed a five-year tariff of up to 87.5% on imports of China-made fasteners to Europe, in an attempt to reinstate fair competition in global market.



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