Stocks to Watch Axis REIT, K-One Tech, IOI, Tan Chong, TNB

KUALA LUMPUR (April 12): Malaysian stocks could take the cue from China's first quarter gross domestic product (GDP) numbers, and the US corporate earnings dynamics on Friday.

Against the backdrop of external uncertainties, analysts cautioned that the FBM KLCI could see limited gains in the absence of domestic catalysts. The FBM KLCI rose 4.1 points to close at 1,601.27 on Thursday.

Stocks to watch on Friday include Axis Real Estate Investment Trust, K-ONE TECHNOLOGY [] BHD [], IOI Corp Bhd, TAN CHONG MOTOR HOLDINGS BHD [], and TENAGA NASIONAL BHD [] (TNB).

Axis REIT plans to acquire land within Negeri Sembilan's Nilai Industrial Area for RM26.5 million. The leasehold sites will be acquired from LRS Property Sdn Bhd, according to the acquirer.

K-One Tech, an electronic systems manufacturer, said one of its three factories in Ipoh was gutted by fire on Tuesday afternoon. The damaged is estimated at RM13 million, it said.

IOI's 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm's debut on the Singapore bourse on Thursday. Bumitama shares added 27 Singapore cents to an intraday high of S$1.02 (RM2.49) before closing lower at 98 Singapore cents.

CIMB Investment Bank has raised its fair value for Tan Chong from RM4.60 to RM4.75 with a "Neutral" recommendation.

TNB's second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd (Petronas) mitigated the impact of costlier fuel to the state-owned utility's profits.

TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended Feb 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.



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K-One Technology estimates Ipoh factory fire damage at more than RM13m

KUALA LUMPUR (April 12): K-ONE TECHNOLOGY [] BHD [] said the preliminary estimates from the fire damage at one of its secondary factories in the Silibin Industrial Area in Ipoh could be more than RM13 million, subject to verification.

However, the company said the loss impact was mitigated by insurance coverage.

The company said it had three factories located at different sites within the Silibin Industrial Area, and that the three factories consisted of a main factory and two secondary factories.

It said on Thursday that one of the two secondary factories was gutted by fire in the afternoon of April 10, 2012.

The company said the damage included raw materials, work-in-progress, finished goods, own brand products, components, parts, machines, equipment, tools and building, renovations, fittings, furniture and others.

"The Management has taken immediate action to recover finished goods lost in the fire incident by replacement production in the main factory.

"Hence, we expect to meet all customer deliveries and orders in the quickest time possible," it said.

The company said the root cause of the fire was currently being investigated by the company and relevant authorities.



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