KLCI ends lower, but hangs on above 1,590-level

KUALA LUMPUR (April 20): The FBM KLCI extended its losses to close lower on Friday, as external factors weighed on investor sentiment and dragged stocks lower.

The index fell 4.77 points to close at 1,591.85, weighed by losses including at Petronas Chemicals, Genting, RHB Capital and CIMB.

Market breadth was negative with 364 losers, 317 gainers and 361 counters unchanged. Volume was 1.63 billion shares valued at RM1.48 billion.

Meanwhile, Asian shares fell and commodity-linked currencies such as the Australian dollar slipped on Friday after disappointing U.S. economic data stirred doubts about the strength of the recovery, according to Reuters.

Renewed worries on the euro zone debt crisis also kept riskier assets under pressure, as a better-than-feared Spanish bond auction failed to allay concerns that Spain may follow Greece, Ireland and Portugal in needing an international bailout, it said.

A weekend featuring a potentially rocky meeting of the International Monetary Fund, which is seeking to boost its funds to help contain Europe's problems, and the first round of a French presidential election have heightened the nervousness, said Reuters.

At the regional markets, Japan’s Nikkei 225 was down 0.28% to 9,561.23, Taiwan’s taiex lost 1.52% to 7,507.15, South Korea’s Kospi fell 1.26% to 1,974.65 and Singapore’s Straits Times Index xx

Meanwhile, the Shanghai Composite Index rose 1.19% to 2,406.86 and Hong Kong’s Hang Seng Index edged up 0.07% to 21,010.64.

On Bursa Malaysia, Aeon fell 19 sen to RM9.41, Manulife and Petronas Chemicals fell 14 sen each to RM3.22 and RM6.56, MISC down 13 sen to RM5.03, Genting and Bursa fell 12 sen each to RM10.80 and RM6.85, while SAM Engineering, Litrak, Lafarge Malayan Cement and Kian Joo fell 10 sen each to RM3.55, RM4, RM7.21 and RM2.04 respectively.

Ariantec was the most actievely traded counter with 436.8 million shares done. The stock rose 4.5 sen to 22 sen.

Other actives included Metronic, Focus, Naim indah Corp, CSL, Astral Supreme, AWC and SuperComNet.

Gainers included BAT, Dutch Lady, Aeon Credit, KLK, Jaya Tiasa, Panasonic, Country View, Carlsberg, CBIP and GAB.



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See family alleges plagiarism in court judgment

KUALA LUMPUR (Feb 20): The lengthy legal battle between Kian Joo Can Holdings Sdn Bhd and CAN-ONE BHD [] took another twist, with the See family seeking a review of the Federal Court decision, alleging the court had "plagiarised" its grounds of judgment.

The See family's latest application was filed by their solicitor Messrs VK Lingam and Co on Feb 13. A copy of the documents was distributed to reporters on Monday.

The review application was supported by an affidavit affirmed by former KIAN JOO CAN FACTORY BHD [] (KJCF) managing director Datuk See Teow Chuan, who said the bid was filed because the Federal Court's grounds of judgment dated Jan 5 "consisted very largely and substantially the reproduction, without any attribution, of the respondents' first written submission".

See also alleged the Federal Court did not conduct an independent and impartial review of the evidence and law or engage in their own analysis.

To recap, on Feb 15, See and 13 others filed an application seeking the review of the Jan 5, 2012 Federal Court ruling that gave the nod for Can-One to buy the 32.9% stake of KJCF comprising of 146.13 million shares.

Can-One said it was informed by its solicitors that See and the 13 other applicants had applied for the Federal Court order to be reviewed and set aside.

The application was for the appeals to be re-heard by the Federal Court consisting of judges of the Federal Court other than those who heard and decided upon the appeals on Jan 5.

See and the 13 other applicants had also sought to restrain Ooi Woon Chee and Ng Kim Tuck from distributing the RM241.11 million from the sale of the 146.13 million KJCF shares to Can-One International Sdn Bhd.

They also applied for Can-One’s unit be restrained from selling and/or disposing of the whole or any part of the 146.13 KJCF shares purchased from Kian Joo Holdings pending the hearing and final disposal of the application.



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Can-One drops on stake sale impasse

Can-One Bhd, a maker of tin cans, dropped 5 per cent to RM1.70, headed for its lowest close since January 11.

See Teow Chuan, former managing director of Kian Joo Can Factory Bhd, and 13 others are seeking a review of the Federal Court’s ruling that allowed Can-One to buy a 32.9 per cent stake in Kian Joo, according to a stock-exchange filing.

Kian Joo fell 2.6 per cent to RM2.22. - Bloomberg



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Stocks to watch: Amway, Prestariang, Can-One, Mulpha Intl

KUALA LUMPUR (Feb 15): Stocks on Bursa Malaysia could see cautious trade after the FBM KLCI snapped its two-days of gains despite the firmer broader market.

However, lending support could come from the better-than-expected economic numbers where the fourth quarter 2011 GDP expanded at 5.2%. Economists had expected the 4Q2011 GDP to have expanded 4.5% on-year, driven by upbeat domestic demand.

Among the stocks to watch are Amway (Malaysia) Holdings Bhd, Prestariang Bhd, CAN-ONE BHD [] and Mulpha International following the latest corporate developments.

Amway’s net profit for the fourth quarter ended Dec 31, 2011 rose 36.1% to RM24.93 million from RM18.31 million a year earlier, due mainly to improved gross margin arising from the lower cost of products and lower operating expense.

Amway declared a fourth interim single tier dividend of nine sen net per share for the financial year ended Dec 31, 2011, to be paid on March 30, 2012. The company was adopting a dividend payout ratio of no less than 80% of the company’s current year net earnings from the financial year 2012.

For the financial year ended Dec 31, Amway’s net profit was up 14.9% to RM89.99 million from RM78.32 million in 2010, while revenue rose to RM735.81 million from RM719.41 million.

Prestariang posted net profit of RM10.55 million in the fourth quarter ended Dec 31, 2011, underpinned by strong demand for its information communications TECHNOLOGY [] (ICT) training. Its revenue was RM32.63 million. Its earnings per share were 4.80 sen. It proposed a final single-tier dividend of 4.0 sen per share.

For the financial year ended Dec 31, 2011, it reported net profit of RM33.61 million on the back of RM111.75 million in revenue.

The legal tussle between Can-One Bhd and Kian Joo Holdings Sdn Bhd resumed. The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) Datuk See Teow Chuan and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One to buy the 32.9 pct stake of KJCF.

Mulpha expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

Meanwhile, DENKO INDUSTRIAL CORPORATION [] Bhd saw Green Power Resources Ltd increasing its stake in the company. Green Power, which is based in Singapore, acquired 9.0 million shares in Denko on Feb 9 and increased its shareholding to 13.14% or 13.72 million shares. The shares were disposed of by Yong Boon Cheong at 30 sen each.

GD EXPRESS CARRIER BHD []'s net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.



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Ex-Kian Joo MD, 13 others seek review of Federal Court ruling

KUALA LUMPUR (Feb 15): The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for CAN-ONE BHD [] to buy the 32.9 pct stake of KJCF.

Can-One said on Wednesday it was informed by its solicitors that Datuk See Teow Chuan and the 13 other applicants had applied for the Federal Court order dated Jan 5, 2010 be reviewed and set aside.

It said its solicitors had on Monday received two notices of motion and the affidavits in support from Messrs V K Lingam & Co, who is acting on behalf of See and the applicants.

The application was for the appeals to be re-heard by the Federal Court consisting of judges of the Federal Court other than those who heard and decided upon the appeals on Jan 5.

To recap, Can-One Bhd said on Jan 5 it had won the legal tussle to acquire the 146.13 million KJCF shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour.

Can-One had then said the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

However, in the latest development, See and the 13 other applicants had sought to restrain Ooi Woon Chee and Ng Kim Tuck from distributing the RM241.11 million from the sale of the 146.13 million KJCF shares to Can-One International Sdn Bhd.

They also applied for Can-One International be restrained from selling and/or disposing of the whole or any part of the 146.13 KJCF shares purchased from Kian Joo Holdings Sdn Bhd pending the hearing and final disposal of the application.

Can-One said it would be opposing the applications and it was in the process of taking legal advice.



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Higher dividends for Kian Joo shareholders?

KUALA LUMPUR: Kian Joo Can Factory Bhd (KJCF), which has paid out half its earnings in dividends, could be even more generous considering its new controlling shareholder Can-One Bhd needs cash to pare down its high borrowings.

Can-One has raised borrowings to finance the acquisition of a 32.9% equity stake in KJCF costing RM241 million in cash.

The loan, which finances the share purchase, will effectively double Can-One’s existing borrowings to RM467 million, and raise net gearing to about 2.2 times, according to estimates by The Edge Financial Daily.

As at Sept 30, 2011, before the KJCF acquisition, Can-One had RM226.04 million in borrowings and RM11.84 million cash. With a shareholders’ equity of RM205.44 million, it then had a net gearing of 1.04 times.

“We believe Can-One would need additional cash inflow to pay off the loan interest. At this juncture, we reckon that Can-One will probably opt to receive dividends from KJCF to pay off its borrowings plus interest.

“As such, there is a possibility that with Can-One controlling KJCF now, the company may see a higher dividend payout in the future, benefiting minority shareholders of KJCF as well,” said Kenanga Research.

Kenanga estimates Can-One to incur interest expense of an additional RM28 million per annum on the borrowings to finance the acquisition of the KJCF stake.

The research house reckons that Can-One could increase KJCF’s payout ratio from the current 50% to 80%, which translates into 20.3 sen dividend per share (DPS) based on net profit forecast of RM112.8 million or 25.3 sen per share for FY11 ended Dec 31.

KJCF recorded a net profit of RM89.75 million or 20.21 sen per share for the nine months ended Sept 30.

With 146.1 million shares in KJCF, Can-One would receive about RM30 million in extra cash.

For FY10, KJCF declared a 55% dividend payout, amounting to 13.75 sen per share. KJCF posted a net profit of RM101.97 million or 22.96 sen per share for FY10.

Kenanga forecasts KJCF’s net profit to grow to RM132 million or 29.8 sen per share for FY12. Meanwhile, TA Research expects a net profit of RM143 million or 32.2 sen per share for FY12.

Assuming a payout ratio of 80%, KJCF could probably declare DPS of 23.8 sen to 25.7 sen. This will make KJCF an attractive dividend stock with a 10% yield based on its share price which closed at RM2.20 last Friday.

To recap, Can-One won the bid for a controlling 32.9% stake in its largest competitor KJCF in February 2009 at RM1.65 per share. But the See family, who founded KJCF, waged a legal battle to reject the share disposal.

After three years of courtroom tussles, the Federal Court ruled in favour of Can-One’s bid to purchase the stake on Jan 5.

The acquisition is considered a good bargain for Can-One as the price it paid was at more than 20% discount over the market value, and nearly 25% over its net asset per share of RM2.02.

With the large block of shares crossed via off-market last week, Can-One is now the single largest shareholder of KJCF. Can-One is expected to seek board representation at KJCF.

More generous dividend payments would probably be good news for other shareholders as well. Other substantial shareholders of KJCF are Kumpulan Wang Persaraan with 8.96%, and the Employees Provident Fund 7.94%.

Kian Joo Holdings Sdn Bhd, the investment vehicle of the See family, is left with 1.74%. The See brothers collectively own a 6.6% stake.

Apart from the steady cash flow generated from its can manufacturing business, KJCF has the option to divest its shareholding in Box-Pak (M) Bhd, a corrugate carton box manufacturer.

“If KJCF disposes of its 54.8% stake in Box-Pak at the previously rumoured price of RM3.20, Can-One could be getting about RM34.6 million as capital repayment at the level,” added Kenanga.

However, an analyst noted that at Kenanga’s rumoured price, Box-Pak would look very pricey, at 1.82 times book and a price-to-earnings ratio of 13.9 times, based on annualised earnings per share of 23 sen for FY11 ended Dec 31.

Box-Pak’s shares surged 28 sen or 11.9% to RM2.64 on a heavy volume of 1.91 million shares last Friday.

The stock is trading near its 12-month high, whose share price doubled over the past two months.

The possible dividends would come in handy for Can-One to at least cover its interest expenses.

However, Kenanga conceded that the move to raise dividends would only lift Can-One’s debt burden temporarily, and it is still uncertain how Can-One plans to pay off its huge borrowings in the long run.


This article appeared in The Edge Financial Daily, January 30, 2012.



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Kian Joo stake sale completed

KUALA LUMPUR: Can-One Bhd finally got hold of 32.9% equity interest, or 146.1 million shares, in Kian Joo Can Factory Bhd (KJCF) from the See family via an off-market trade yesterday.

The news should lay to rest any remaining uncertainty over Can-One’s acquisition of the stake in KJCF at RM1.65 per share, which is at a 25.6% discount to yesterday’s closing price of RM2.22.

In fact, Can-One’s share price climbed further yesterday, setting a record high of RM2.17. Some 6.9 million shares changed hands on the open market.

It has been two weeks since the Federal Court ruled in favour of Can-One’s takeover of the See family’s 32.9% stake in KJCF.

The delay to the block of shares changing hands had raised uncertainty about whether Can-One was facing hurdles on the share purchase after a three-year tussle in the courtroom.

To recap, Can-One won the bid for its largest competitor, KJCF, three years ago at RM1.65 per share but the See family waged a legal battle to reject the share disposal.

Today, KJCF has net assets per share of RM1.96 and it is valued at 1.13 times book value based on yesterday’s closing of RM2.22.

As such, Can-One is buying KJCF at a discount of 0.84 times book value. Can-One only has to pay RM241 million for the KJCF block that is worth RM324.3 million based on yesterday’s closing price. This gives Can-One a paper gain of about RM83.3 million.

KJCF has a string of real estate assets in Malaysia and Vietnam with a total net book value of RM340.98 million, according to the company’s latest annual report.

With KJCF shares in hand, Can-One will no longer have to contemplate the See family’s potential “poison pill” of a rights issue.

The rights issue was announced in February 2011 and would have diluted the block of shares substantially if the See family decides not to subscribe to the cash call before selling to Can-One.


An analyst noted that Can-One’s acquisition will translate into better margins. Combined, both players will be able to command better prices as well as leverage their combined size for better prices from suppliers.

Analysts also said Can-One is getting a bargain as KJCF has a stable earnings track record, having expanded its production capacity in Malaysia and Vietnam. It also has improved future earnings prospects as it ventures into Indonesia.

As things stand, KJCF looks poised for a record year of profits.

TA Research forecasts KJCF’s FY11 net profit to rise to RM116.8 million, up 14.5% from RM101.98 million for FY10. Net profit for FY12 is expected to be RM143 million.

In line with that expectation, Kenanga Research forecasts KJCF’s net profit for FY11 to grow 10.6% year-on-year to RM112.8 million and hit RM132 million for FY12. Kenanga maintained its target price of RM2.38 with a “market perform” call on the counter.

Funding to acquire KJCF would not have been difficult to secure, as Can-One has bought an income-generating asset at a discount.

On the other hand, Can-One’s relatively weak cash position of RM11.85 million compared with its debt obligation of RM226.04 million may be a problem moving forward. Concern has been raised that the high gearing might prove challenging, particularly if Can-One should require additional funding at a later date.






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Can-One, Kian Joo shares retreat in early trade

KUALA LUMPUR (Jan 26): Shares of CAN-ONE BHD [] and Kian Joo Can Factory fell on Thursday, a day after the former said it had completed the acquisition of the 32.9% stake in KJCF for RM241.11 million cash consideration.

At 9.40am, Can-One fell nine sen to RM2.08 with 1.61 million shares done, while KJCF lost four sen to RM2.18 with 84,000 shares traded.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.



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Stocks to watch: Can-One, Kian Joo, Hibiscus, KNM

KUALA LUMPUR (Jan 26): Markets would be on the lookout for signals from the Federal Reserve about its monetary policy on Thursday morning while the eurozone is still mired in crisis.

Concern over how Greece's debt talks will develop trumped any appetite for riskier assets on Wednesday, despite good economic data from Germany and a widely held view that the Federal Reserve is set to signal an extended period of ultra-low rates.

Reuters reported Wednesday that the Fed looked set to keep monetary policy on hold, even as it releases forecasts expected to show interest rates will be near zero for at least two more years.

It said given recent improvement in the U.S. economy, the central bank will probably remain non-committal regarding the prospect for additional bond purchases, but will leave the door open to further action if Europe's banking problems spill over into the United States.

At Bursa Malaysia, the broader market closed higher in late trade, despite the decline in the FBM KLCI due to losses in banking stocks.

Stocks which could see trading interest following the latest corporate news are CAN-ONE BHD [], KIAN JOO CAN FACTORY BHD [] (KJCF), Hibiscus Petroleum Bhd and KNM GROUP BHD [].

Can-One said on Wednesday it had completed the acquisition of the 32.9% stake in KJCF for RM241.11 million cash consideration.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.

Hibiscus Petroleum, which was queried by Bursa Malaysia Securities Bhd after its securities jumped in very active trade on Wednesday, replied it was unaware of the reasons for the unusual market activity.

The shares closed 32 sen higher at RM1.52 with 53.58 million shares done while the warrants climbed 14.5 sen to 85 sen with 176.11 million units done.

KNM has proposed to acquire a company owning 55 acres of land at Storey's Bar Road, Peterborough, England for 25 million pound sterling or RM120 million.

It had signed an exclusivity agreement with Poplar Holdings Ltd for the grant of exclusivity to acquire the latter’s unit Poplar Investments Ltd which owns the 55 acres of vacant land.

KNM said the agreement was to secure exclusive rights to purchase the sale shares and indirectly own the land to build an 80 MW waste to energy plant.



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Can-One completes purchase of 32.9% stake in KJCF

KUALA LUMPUR (Jan 25): CAN-ONE BHD [] has completed the acquisition of the 32.9% stake in KIAN JOO CAN FACTORY BHD [] (KJCF) for RM241.11 million cash consideration.

Can-One said on Wednesday the acquisition of the 146.13 million KJCF shares from Kian Joo Holdings Sdn Bhd was deemed completed as all the conditions in the conditional shares sale agreement dated March 23, 2009 had been fulfilled.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.

They added Can-One would be in a better position to increase the market share once its take control of KJCF.

To recap, Can-One announced on Jan 6 that it won the legal tussle to acquire the block of KJCF shares after a Federal Court ruled in its favour.



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OSK Retail Research: Kian Joo charging towards RM2.81 to RM2.31

KUALA LUMPUR (Jan 17): OSK Retail Research said over the last two trading days, KIAN JOO CAN FACTORY BHD []’s share price was charging towards the tough RM2.28-RM2.31 resistance area with strong and rising volume.

It said on Tuesday if market interest in Can-One and Kian Joo remains high, there is a possibility that the stock will eventually push itself beyond the resistance area.

“As such a violation is expected to sustain the current upward momentum, traders could consider accumulating the shares between the RM2.16 level and the current level. If a breakout materialises, the momentum should be able to carry its share price closer to the RM2.56 resistance level.

“Our cut-loss point is pegged at below the RM2.16, as a dip below this level would signal that Kian Joo will start consolidating the strong gains recorded over the last two sessions,” it said.



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Kian Joo poised for record profit ahead of takeover

KUALA LUMPUR: Kian Joo Can Factory Bhd (KJCF) looks poised for a record year of profit against the backdrop of the See family courtroom tussle for the company.

While Can-One Bhd may soon seize control of the majority stake in KJCF which may in turn result in a boardroom struggle, it would appear that in terms of valuation, KJCF is still an attractive counter.

KJCF is a very different animal today from what it was three years ago when Can-One won a bid to acquire a 32.9% stake in KJCF for RM1.68 per share in February 2009. Operations in Vietnam are turning profitable yet valuations are relatively low with share price parity to net assets per share.

TA Research forecast KJCF’s FY11 net profit to rise to RM116.8 million, up 14.5% from RM101.98 million for FY10. Net profit for FY12 is expected to be RM143 million. In line with that expectation, TA Research maintains its “buy” call on KJCF shares with a target price of RM2.58.

Kenanga Research similarly forecasts KJCF’s net profit for FY11 increase 10.6% year-on-year (y-o-y) to RM112.8 million and hit the RM132 million mark for FY12. Kenanga maintained its target price of RM2.38 with a “market perform” call on the counter.

KJCF closed at RM2.16 last Friday, rebounding 15 sen from RM2.01 after falling for one week since it a high of RM2.20 on Jan 6.

In terms of valuation, KJCF is still an attractive counter.

At RM2.16, KJCF is being valued at a price-to-earnings ratio (PER) of 8.47 times and 1.07 times book.

“Since it is a relatively old company, there is a chance some of its assets like land have not been revalued in awhile. On that basis, it would appear that Kian Joo is undervalued,” said an analyst.

While KJCF may be undervalued, the impending acquisition by Can-One reduces the value of buying into KJCF.

TA Research’s report read: “We find the offer price of RM1.65 on the low side as it does not reflect Kian Joo’s true value, as the price was offered four years ago. Assuming the exercise goes through, we advise investors to buy into Can-One for cheaper exposure to Kian Joo.”

Another analyst noted that Can-One’s acquisition would translate into better margins. Combined, both players would be able to command better prices in the market as well as leverage their combined size for better prices from suppliers.

“In terms of PE, manufacturing companies typically value fairly at about 10 to 12 times PER,” the analyst added.

An analyst also said KJCF had more upside potential in Vietnam as most of its earnings had not yet fully matured there as the company only established itself in Vietnam two years ago.

KJCF’s corrugated carton division in Vietnam had reaped RM60.6 million in revenue for 3QFY11 ended Sept 30, up 23% from RM49.2 million in the same quarter the previous year. However, profit before tax was 17% lower due to commodity derivatives and foreign exchange losses.

The company had reported a 32% higher revenue for its carton division in 9MFY11 to RM175 million from RM132.1 million a year earlier mainly due to operations in Vietnam. This resulted in a 90% increase in profit to RM11.8 million in 9MFY11 from RM6.2 million in 9MFY10.

In terms of yield, TA Research and Kenanga Research respectively expect KJCF to pay a dividend yield of 5.2% and 5.8% in 2011 and 6.6% and 6.8% for 2012 respectively.

Can-One recently got the go-ahead from the Federal Court to purchase the 32.9% stake in KJCF. Industry observers have noted that KJCF will unlikely find other legal means to prevent the sale.

One final play from the See family, which controls KJCF, is a rights issue announced in February 2011 which could dilute Can-One’s holdings.

According to TA Research’s report, while the exercise had been granted by the court after Can-One attempted an injunction, Bursa Malaysia has decided put it on hold.

KJCF had reported net profit for the 9MFY11 of RM89.75 million, up 13.81% from RM78.86 million in the previous corresponding period. Revenue in the period was up 11.2% to RM793.54 million from RM713.46 million before.


This article appeared in The Edge Financial Daily, January 16, 2012.




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Can-One, Kian Joo buck market on GO speculation

KUALA LUMPUR (Jan 16): Shares of CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [] (KJCF)extended their rally on Monday as market talk of a general offer by Can-One for KJCF intensified.

At 3.08pm, Can-One was up 12 sen to RM2 with 12.07 million shares done while KJCF added eight sen to RM2.24 with 4.18 million units transacted.

However, the FBM KLCI fell 11.08 points to 1,511.99. Turnover was 873.85 million shares valued at RM678.80 million. There were 148 gainers, 554 losers and 244 stocks unchanged.

Expectations of a general offer by Can-One after it was given court approval to acquire the 32.9% block of KJCF had seen the stocks rallying.

However, analysts said Can-One would be in a better position to increase the market share once its take control of KJCF. However, they expected some profit taking after Can-One’s price surge.

They said Can-One was cheap currently based on the future business growth and investors should pick up the stock if there was a price correction.

As for KJCF, they said long-term investors should stay invested as the fundamentals remain robust.



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Stocks to watch: Hiap Teck, Mitrajaya, Frontken, Can-One, Kian Joo

KUALA LUMPUR (Jan 14): Key regional markets including Bursa Malaysia are likely to start off the new week on Jan 16 on a cautious note as the eurozone crisis drags on.

The latest move by Standard & Poor's to downgrade the long-term ratings on nine eurozone sovereigns will weigh on market sentiment.

S&P stripped France of its top AAA rating and downgraded of half the nations in the euro zone, which Reuters reported might complicate European efforts to solve a two-year old debt crisis.

“In our view, the policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone,” said S&P.

On Wall Street, stocks dropped on Friday, snapping a four-day winning streak on the downgrade.

The Dow Jones industrial average fell 48.96 points, or 0.39%, to 12,422.06 at the close. The Standard & Poor's 500 Index lost 6.41 points, or 0.49%, to 1,289.09. The Nasdaq Composite Index fell 14.03 points, or 0.51%, to 2,710.67.

For the week, the DJIA rose 0.5%, while the S&P 500 advanced 0.9%, and the Nasdaq gained 1.4%.

Reuters reported that investors will look to earnings next week for insight on how the euro zone's debt woes may affect profits.

At Bursa Malaysia, stocks which could see trading interest are HIAP TECK VENTURE BHD [], MITRAJAYA HOLDINGS BHD [], FRONTKEN CORPORATION BHD [], CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [].

Meanwhile, The Edge weekly reports in its latest edition that the Genting group's partnership with the state of New York - in a proposed US$4 billion development that would house the largest convention centre in the US - would give it an edge when it comes time to bid for a full-fledged casino licence.

Snack and confectionery manufacturer Cocoaland’s earnings recovered last year, whether the company can sustain its performance in the current financial year will depend on its ability to pass on the additional costs incurred in production to customers.

Hiap Teck Venture’s additional 354.14 million new shares under its rights issue with the 88.53 million warrants will be listed on Monday.

Mitrajaya’s unit has secured two contracts worth a total RM33.41 million from Putrajaya Holdings Sdn Bhd for CONSTRUCTION [] jobs in Putrajaya. Pembinaan Mitrajaya Sdn Bhd was awarded contracts to build houses and shop offices in Precints 11 and 8 in Putrajaya.

Frontken executive chairman and managing director Wong Hua Choon has disposed of his whole stake of 59.50 million shares or 5.8% stake.

Wong sold all the shares at 12 sen in two blocks to its German shareholder Jorg Helmut Hohnloser on Friday. Its net asset per share was 21 sen. Hognloser’s shareholding increased to 28.8% or 290.99 million shares after he acquired the shares.

Can-One and Kian Joo would continue to see trading interest on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block.



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Can-One, Kian Joo climb on mkt talk of possible GO

KUALA LUMPUR (Jan 13): Shares of CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [] (KJCF) climbed on Friday afternoon on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block.

At 3.46pm, Can-One was up 13 sen to RM1.91. There were 13.18 million shares done at prices ranging from RM1.77 to RM1.99.

KJCH rose 14 sen to RM2.15, the most in recent days. There were 3.61 million shares transacted at prices ranging from RM2.01 to RM2.15.

Last Thursday, Jan 5, Can-One won the legal tussle to acquire the 146.13 million KJCF shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour.

The apex court had allowed Can-One’s appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

Market talk was that Can-One could then launch a general offer for the remaining shares in KJCF.

To recap, on Nov 16, 2011 Can-One said the Securities Commission had approved a further extension of times until May 6, to complete the proposed acquisition.

As at Sept 30, 2011, KJCF’s net asset per share was RM2.02. It had cash of nearly RM60 million.



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KLCI dips at mid-morning, sentiment continues to be jittery

KUALA LUMPUR (Jan 10): The FBM KLCI fell at mid-morning on Tuesday amidst lackluster trade, weighed by losses at select blue chips including Genting-related stocks.

The FBM KLCI shed 0.61 of a point to 1,521.12 at mid-morning.

Losers edged gainers by 195 to 189, while 260 counters traded unchanged. Volume was 412.49 million shares valued at RM268.33 million.

Asian shares and the euro rose on Tuesday, but concerns over funding of euro zone sovereigns ahead of key auctions this week and of the debt crisis spilling over into the wider financial system kept investors cautious about taking riskier positions, according to Reuters.

With European woes overshadowing recent positive economic data from the United States, market players will be seeking from Chinese trade data due later in the session signs of how the euro zone debt crisis is affecting Asian growth, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.41% to 8,424.47, South Korea’s Kospi gained 1.67% to 1,856.98, Taiwan’s Taiex was up 1.08% to 7,169.96, Singapore’s Straits Times Index gained 0.44% to 2,703.07, the Shanghai Composite Index edged up 0.28% to 2,232.11 and Hong Kong’s Hang Seng Index added 0.09% to 18,882.63.

MIDF Research acting head of equity Syed Muhammed Kifni said the market was expected to remain jittery going forward with the possibility of the KLCI re-testing its 2011 lows.

Nonetheless, he said that the Euro debt issue would begin to show credible signs of healing later in the 1H2012, adding that when that transpires, the underperforming indices can be expected to show swifter resurgence on the way up.

In contrast, the KLCI is anticipated to experience relative underperformance during the recovery phase, he said.

“With that in mind, we reiterate our KLCI year-end 2012 base case target of 1,530 points.

“As our base case KLCI year-end target for this year virtually matched its 2011 close, in our view, 2012 may quintessentially be a consolidation year.

Among the losers at mid-morning, Genting lost 12 sen to RM11.02, Genting PLANTATION []s down 10 sen to RM8.80, BHIC nine sen to RM3.70, KPJ eight sen to RM4.18, BLD Plantations seven sen to RM7.956, JCY six sen to RM1.05. Paragon 5.5 sen to 24.5 sen, while Tradewinds and Kian Joo lost five sen each to RM9.73 and RM2.07.

Takaso was the most actively traded counter with 41.99 million shares done. The stock gained 2.5 sen to 26.5 sen.

Other actives included KHSB, JCY, Harvest Court, Focus and Ingenuity Solutions.

Gainers included United Plantations, Petronas Dagangan, Petronas Gas, Harvest Court, BAT, CBIP and Mudajaya.



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Stocks to watch: LPI, Proton, DRB-Hicom, KHSB, Xidelang, Can-One

KUALA LUMPUR (Jan 10): Stocks on Bursa Malaysia could see some positive bias on Tuesday, underpinned by the investors’ firmer sentiment across the broader market, with focus also on stocks with fresh corporate news.

Then again, the sentiment would also hinge on the outcome of the European meeting on Monday to tackle a debt crisis.

World stocks and the euro gained on Monday after last week's sell-offs, but worries over Europe's banks persisted and fears over demand for the region's debt at auctions due this week left riskier assets vulnerable to further losses, Reuters reported.

German and French leaders were meeting to discuss ways to boost growth in euro zone states struggling with a debt crisis and rising unemployment, and to finalize a deal to increase fiscal coordination within the currency union.

At Bursa Malaysia, the market was weaker in early trade on Monday before putting up a stronger performance in the afternoon, underpinned by external news and on-going corporate developments.

Among the stocks which could see trading interest are LPI CAPITAL BHD [], PROTON HOLDINGS BHD [], DRB-HICOM BHD [], KUMPULAN HARTANAH SELANGOR BHD [] (KHSB), Xidelang Holdings Ltd and CAN-ONE BHD [].

LPI Capital Bhd reported a 6.5% increase in net profit to RM39.33 million for the fourth quarter ended Dec 31, 2011 from RM36.94 million a year ago, boosted by the general insurance business.

LPI announced a second interim single tier dividend of 50 sen per share versus 45 sen a year ago.

DRB-Hicom Bhd has confirmed it has submitted a bid to acquire Khazanah Nasional Bhd’s 42.7% stake in Proton Holdings Bhd. DRB-Hicom said it had always viewed Proton as an important automotive industry player while some analysts said DRB-Hicom was the best bet for Proton.

Meanwhile, KHSB has confirmed its major shareholder KUMPULAN PERANGSANG SELANGOR [] Bhd (KPS) has been given the mandate to enhance or revive its investments.

KHSB said that KPS was mandated by the board to explore and evaluate the available options, which may include a reorganisation and restructuring of its investments and mergers, acquisitions or divestments of its non-performing investments.

As for Xidelang, the company said its major shareholder HongPeng International Holdings Ltd does not have any plans to sell its stake.

Xidelang said it had made due and diligent enquiry with HongPeng which replied while it had been receiving enquiries from external parties including private equity firms, “but HongPeng has no intention of selling its stake at this juncture”.

Xidelang also said the discussions between Navis Capital and HongPeng held during October and November last year were solely exploratory in nature and there was no offer being made or a price range indicated by Navis Capital.

Can-One, whose share price has run up over the past three days, could see some pullback as investors take profit unless the company announces its plans to gain more control of KIAN JOO CAN FACTORY BHD []. However, there could be some fightback by some Kian Joo shareholders.

Can-One had won the court tussle to buy the 146.13 million Kian Joo Can Factory shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour last Thursday.

Can-One announced to Bursa Malaysia last Friday that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.



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Can-One surges on court go-ahead

Can-One Bhd, a Malaysian maker of tin cans, jumped to a record in Kuala Lumpur trading after the Federal Court allowed it to proceed with the purchase of a 33 percent stake in rival Kian Joo Can Factory Bhd for RM241 million.

The stock surged 17 percent to RM1.86 at 9:03 a.m. local time. -- Bloomberg



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Can-One advances on winning legal tussle to buy Kian Joo shares

KUALA LUMPUR (Jan 9): CAN-ONE BHD [] shares advanced in early trade on Monday after the company won the legal tussle to acquire the 146.13 million KIAN JOO CAN FACTORY BHD [] shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour last Thursday.

At 9.05am, Can-One rose 27 sen to RM1.86 with 2.01 million shares done.

Can-One announced to Bursa Malaysia last Friday that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

The share price surged on Thursday and Friday despite the Can-One’s reply to a Bursa Securities on Thursday that it was unaware of the unusual market activity.



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Stocks to watch: Harvest, Can-One, Astral Supreme, Muhibbah

KUALA LUMPUR (Jan 7): Stocks on Bursa Malaysia could start on a cautious note next week, Jan 9, on continuing worries about a looming recession in Europe and the eurozone crisis, but fresh corporate news could provide some support.

On the local political front, the court is set to deliver its ruling on Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim’s sodomy trial on Monday morning.

On Friday, the police agreed to allow PKR supporters to gather peacefully at the car park outside the Jalan Duta court complex here when the court is scheduled to deliver the verdict in Anwar's sodomy case.

On Wall Street, U.S. stocks rose in the first week of 2012, even though news that the U.S. jobless rate neared a three-year low did not whet interest in equities on Friday.

For the week, the Dow Jones Industrial Average rose 1.2%, the S&P gained 1.6% and the Nasdaq added 2.7% for the week, with most gains coming from cyclical sectors tied to growth.

Reuters reported on Friday that fears a capital black hole are spreading over the euro zone's banking sector threatens to overshadow the first meeting in 2012 of German Chancellor Angela Merkel and French President Nicolas Sarkozy next week to discuss the region's debt crisis.

European banks technically have until Jan. 20 to say how they will raise the estimated 115 billion euro ($147.12 billion)of capital needed by the end of June to repair balance sheets devastated by the euro zone's sovereign debt crisis.

But investors' nerves have become frayed after seeing Italian bank UniCredit forced to deeply discount a planned one-for-one equity rights issue, and calls for more details on how others plan to raise funds are set to grow, Reuters said

At Bursa Malaysia, among the stocks to watch include HARVEST COURT INDUSTRIES BHD [], CAN-ONE BHD [], KIAN JOO CAN FACTORY BHD [], ASTRAL SUPREME BHD [] and Muhibbah Engineering Bhd.

Bursa Malaysia Securities Bhd is removing the trading curbs on Harvest Court Industries Bhd’s shares and warrants with effect from Monday – nearly eight weeks after they were imposed on Nov 16.

Can-One Bhd won the legal tussle to acquire the 146.13 million Kian Joo Can Factory Bhd held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour on Thursday.

Can-One announced to Bursa Malaysia that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

Astral Supreme secured a €2.96 million (RM12.45 million) contract from Germany’s Sphairon Technologies GmbH.

What would interest investors is that based on the company’s annual revenue for financial year ended Dec 31, 2010 of RM13.36 million, the order value was about 93.2% of the latest annual revenue.

Muhibbah’s shares could be given a boost after CIMB Bank Bhd, which is the financier of the Asia Petroleum Hub Sdn Bhd (APH) project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

Muhibbah maintained the APH project was viable and it was “working with various financiers, including CIMB, and other relevant parties towards an amicable solution”.



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