Globetronics up 12% at 20-month high

KUALA LUMPUR (April 26) : GLOBETRONICS TECHNOLOGY [] BHD [] rose as much as 12% to a 20- month high, possibly, due to investors chasing the stock to capitalise on the electronics component manufacturer’s proposed final dividends.

Shares of Globetronics added 14 sen to RM1.34, its highest since August 2010, before trading lower at RM1.32 at 4.52pm with some 6.2 million shares done. The stock was among the top gainers across the exchange.

The company plans to pay a single-tier final dividend of 4% which translates into two sen a share for financial year ended December 31, 2011. The ex and entitlement dates fall on June 27, and 29 respectively.

The company’s directors had acquired the stock in recent days. Filings to the exchange show that Ng Kweng Chong and Ng Kok Khuan had bought a collective 240,000 shares in Globetronics on Monday and Tuesday from the open market. The purchase, accounting for less than 1% of the firm’s issued base, was done via their private entity Glencare Sdn Bhd.

Globetronics said on Tuesday first quarter net profit fell 4% from a year earlier as it registered lower revenue and higher operating cost. It said net profit came to RM6.2 million in the quarter to March 31, 2012 against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million.



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Stocks to Watch Top Glove, SelProp, MAS, Globetronics, Keck Seng

KUALA LUMPUR (April 24): Malaysian stocks will take the cue from crucial global economic data from Europe and the US as investors assess external factors against domestic pre-election sentiment.

European highlights include the sale of government bonds in Spain and the Netherlands, while across the Atlantic the spotlight will be on indications of more quantitative easing (QE) by US policymakers to sustain the world's largest economy.

Analysts said signs of a further QE may spur global equities while an opposite indication could result in profit taking. In the US, the S&P 500 futures added 3.75 points to 1,366.5, while the Dow Jones Industrial Average futures climbed 30 points to 12,901.

In Malaysia, the FBM KLCI fell 1.52 points to close at 1582.28 points on Tuesday.

Stocks to watch on Wednesday are Top Glove Corp Bhd, Selangor PROPERTIES [] Bhd (SelProp), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), GLOBETRONICS TECHNOLOGY [] BHD [], and KECK SENG (M) BHD [].

Maybank Investment Bank Bhd has raised its earnings per share (EPS) forecast for Top Glove by 8% to 12% for financial years (FY) ending Aug 31, 2012 to 2014 after taking into account lower prices of natural rubber. Maybank IN, which revised upwards its fair value for Top Glove shares by 29% to RM5.40 from RM4.20, also upgraded the stock to a "buy" from "sell".

SelProp shares will trade ex-dividend on Wednesday. Shareholders have approved the company's plan to pay a first and final dividend of 10%, less 25% tax for the financial year ending Oct 31, 2011.

MAS gained as much as 3.3% or four sen to RM1.27 in intraday trade, against a backdrop of declining crude oil prices. Commodity prices fell on concerns that European sovereign debt woes will curb demand.

Globetronics's first quarter (1Q) net profit declined 4% from a year earlier, as the electronics component manufacturer registered lower revenue and higher operating cost. In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012, against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million, as the company registered less turnover from China and Singapore, it said.

Keck Seng — which undertakes oil palm cultivation, besides real estate and hospitality operations — said it plans to reward shareholders with a final dividend of 6%, less 25% tax for financial year ended Dec 31, 2011. The proposed dividend requires shareholders' consent at the firm's coming annual general meeting.



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Globetronics 1Q profit down 4% year-on-year

KUALA LUMPUR (April 24) : GLOBETRONICS TECHNOLOGY [] BHD []’s first quarter net profit fell 4% from a year earlier as the electronics component manufacturer registered lower revenue and higher operating cost.

In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012 against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million as the company registered less turnover from China and Singapore, it said.

“Moving forward, the group will continue to focus on escalating up the value chain and riding on the research and development initiatives in new products’ design and development.

“The group will also continue to step up efforts in improving the efficiency and cost reduction measures in its group’s operations to achieve the necessary competitive edge in the market.

With the above, the group is optimistic of performing satisfactorily in financial year 2012,” Globetronics said.



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Stocks to watch: Dutaland, IOI Corp, Hibiscus, timber stocks

KUALA LUMPUR: The outcome of the on-going European Union summit on Wednesday, Oct 26 and whether it can hammer out a convincing plan to tackle the region’s debt crisis will decide the direction of the markets on Thursday.

Reuters reported prospects for a comprehensive deal to resolve the crisis at the summit looked dim, with deep disagreements on critical aspects, including how to give the region's bailout fund greater firepower.

At Bursa Malaysia, the FBM KLCI could give up some of the late gains on Tuesday when it reopens for trading on Thursday, unless there is a strong positive plan to resolve the crisis.

Among the stocks to watch are DUTALAND BHD [], IOI CORPORATION BHD [], Hibiscus Petroleum Bhd and timber stocks.

IOI Corporation Bhd announced on Tuesday it terminated its proposed acquisition of 11,977.91 ha (29,597.42 acres) of oil palm PLANTATION [] land from Dutaland Bhd for RM830 million.

IOI Corp said on Tuesday, the cancellation was “due to non-compliance of certain terms and conditions”. However, Dutaland has rejected the reasons for the termination.

Hibiscus resumes trading on Thursday, after its suspension on Tuesday to acquire a 35% equity stake in Lime Petroleum Ltd for a total of US$55 million.

The Lime Group is principally involved in the exploration and production activities in the oil and gas industry in the Middle East region.

Hibiscus said Lime Group’s assets are located in the Middle East, where extensive oil & gas infrastructure has been developed. It also said Lime Group’s assets are located in an area where several other oil and gas companies with significant financial and technical resources operate.

“These other companies include major integrated oil and natural gas producers and numerous other independent oil and natural gas companies and individual producers and operators. In the event that Lime Group has a successful exploration campaign, the assets could attract interest from these other companies as acquisition targets and/or for partnerships,” it said.

Timber stocks could be in focus after the Netherland’s appeals panel has rejected the Malaysian Timber Certification Council’s (MTCC) appeal against a 2010 decision by Dutch timber procurement body TPAC.

According to the Timber Industry magazine, the panel found that the Malaysian Timber Certification Scheme (MTCS) had not met the Netherland’s procurement criteria for wood.

Malaysia Airports Holdings Bhd (MAHB) could continue to see trading interest after its earnings rose 74.1% to RM108.18 million in the third quarter ended Sept 30, 2011 from RM62.11 million a year ago,.

Year to date, the group's profits rose 42.7% to RM278.23 million from RM194.87 million. Revenue rose 16.4% on-year from RM1.65 billion to RM1.92 billion.

GLOBETRONICS TECHNOLOGY [] BHD []’s earnings fell 10.6% to RM7.73 million in the third quarter ended Sept 30, 2011 from RM8.65 million a year ago following a decline in revenue.

Revenue declined 7.4% to RM70.72 million from RM76.38. Earnings per share were 2.91 sen compared with 3.27 sen.

Globetronics 3Q earnings down 10.6% to RM7.73m

KUALA LUMPUR: GLOBETRONICS TECHNOLOGY [] BHD []’s earnings fell 10.6% to RM7.73 million in the third quarter ended Sept 30, 2011 from RM8.65 million a year ago following a decline in revenue.

It said on Tuesday, Oct 25 that revenue declined 7.4% to RM70.72 million from RM76.38. Earnings per share were 2.91 sen compared with 3.27 sen. It declared an interim dividend of 5.0 sen a share.

“Moving forward, the group will continue to focus on escalating up the value chain and riding on the R&D initiatives in new products’ design and development. The group will also continue to step up efforts in improving the efficiency and cost reduction measures in its group’s operations to achieve the necessary competitive edge in the market,” it said.

For the nine-month period, the earnings slipped 3.2% to RM21.67 million from RM22.39 million in the previous corresponding period. The drop in net profit by 3% is mainly caused by the increase in electricity tariff rate and end of life for certain matured products.

Revenue was higher at RM207.08 million compared with RM205.70 million.

It had cash and cash equivalent of RM92.18 million as at Sept 30, 2011 compared with RM81.80 million a year ago.

However, when compared with the second quarter, revenue increased by 2.1% and net profit rose by 2.9% mainly due to improved volume loadings from some of the group’s key customers in the quarter.