Stocks to watch: Mah Sing, Malaysia Pacific Corp, Adventa, BLand

KUALA LUMPUR (March 26): Malaysian stocks may continue to find support from local institutional investors on Tuesday as pre-election sentiment dominate the domestic backdrop against global economic growth concerns

Analysts said there are growing concerns on the sustainability of major economies including the the US and China, sentiment from which, have the ability to influence the direction of financial markets.

“Technically, the current rising wedge (in the FBM KLCI) already implies bearish connotations and will be confirmed upon a decisive breakout,” TA Securities Holdings Bhd said on Monday.

The research house said while the KLCI could advance, downside risk to the stock market barometer is on the rise.

The 30-stock KLCI erased its earlier gains to finish at 1,582.98, down 0.18% or 2.85 points on Monday

Stocks worth noting on Tuesday are MAH SING GROUP BHD [], MALAYSIA PACIFIC CORP BHD [] (MPCorp), ADVENTA BHD [] and BERJAYA LAND BHD [].

Other stocks are UNISEM (M) BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI), Supercomnet Technologies Bhd, Xidelang Holdings Ltd, and CB INDUSTRIAL PRODUCT HOLDING [] Bhd.

Mah Sing has proposed a commercial property project in Kota Kinabalu’s central business district with a combined gross development value of RM830 million.

Meanwhile Amanah Raya Development Sdn Bhd is selling its entire 22% syake of Lakehill Resort Development Sdn Bhd to Malaysia Pacific Corp Bhd (MPCorp) for RM100.88 million. MPCorp said Amanah Raya Development had exercised its put option to sell the stake to MPCorp’s unit.

Adventa posted a weaker set of financial results for the first quarter ended Jan 31, 2012 with net profit falling 33% to RM2.71 million from RM4.05 million as it was impacted by margin squeeze, foreign exchange loss and higher finance cost.

Its revenue slipped 2.2% to RM103.81 million from RM106.19 million while earnings per share were 1.77 sen compared with 2.65 sen.

CIMB Equities Research has upgraded Unisem from “underperform” to “outperform” and raised its fair value by 87% from RM1 to RM1.87. CIMB has also increased its FY12 to FY14 earnings forecasts for the semiconductor manufacturer by 7% to 19%

It also upgraded MPI, also a semiconductor entity, from “underperform” to “outperform” and raised its target price for the stock from RM2.79 to RM4.08, up 46%.

Berjaya Land's net profit fell 93% to RM2.52 million in the third quarter ended Jan 31, 2012 from RM34.91 million a year ago, as lower real estate sales offset higher income from its gaming and hospitality operations. Its total group revenue rose 13% to RM1.12 billion from RM990.6 million.

Bursa Malaysia has queried wire and cable manufacturer Supercomnet on the unusual trading patterns of its shares. The stock rose as much as 93% or 28 sen to an intraday high of 58 sen on Monday before closing lower at 49.5 sen. Some 41 million shares were transacted, putting the stock among the most active and top gainers.

Xidelang shares will go ex-dividend on Tuesday. The shoe manufacturer had last January proposed a bonus share issue which is undertaken concurrently with a private placement of new shares and renounceable rights issue of warrants.

CBIP, has clinched a RM44.67 million job to build a 45 tonne per hour palm oil mill from Syarikat Ladang Sungai Terah Sdn Bhd, a wholly-owned subsidiary of Kumpulan Perladangan PKINK Bhd.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Takeover offer for Mahajaya at 85 sen each

KUALA LUMPUR: Property developer Mahajaya Bhd has received a notice of conditional takeover from a group of joint-offerors, made up from its major shareholders, to acquire the remaining 75.56 million shares representing a 27.57% stake they do not own in the company at 85 sen each. The offer valued the whole of Mahajaya at RM232.9 million.

The joint-offerors are Waiban Corp Sdn Bhd (WCSB), Rancangan Impian Sdn Bhd (RISB), and Mahajaya managing director Tan Ming Wai and deputy managing director Tan Ming Ban. Together they own a 72.43% stake in Mahajaya as at yesterday.

Meanwhile, the persons acting in concert (PAC) with the joint-offerors, mainly the other members of the Tan family, hold total shareholdings of 2.53% in Mahajaya. The PAC had stated their acceptance of the offer.

The takeover offer at a cash price of 85 sen per share represents a 16.4% premium to the stock’s closing price of 73 sen yesterday, and is 9.68% higher than the highest closing market price of Mahajaya’s share of 77.5 sen — recorded on Jan 26 — over the past five years. However, the offer came in at 31.5% below the company’s net assets per share of RM1.24, as at June 30, 2011.

In a filing with Bursa yesterday, Mahajaya said the offer price represents a price-to-earnings ratio of 3.39 times the company’s net earnings per share for FY11 ended June 30 of 25.08 sen — which included a net gain after tax of about RM63.4 million from the disposal of three portions of land located in Petaling district, Selangor measuring approximately 51.38 acres (20.55ha).

Excluding net gain from the disposal, the offer price represents 43.81 times Mahajaya’s FY11 earnings per share of 1.94 sen.

As at June 30, 2011, Mahajaya had cash reserves of about RM41.43 million against total borrowings of about RM4.05 million, translating into a net cash position of RM37.38 million. With 274.014 million outstanding shares, Mahajaya’s net cash per share was 13.64 sen as at June 30, 2011.

For 1QFY12 ended Sept 30, 2011, Mahajaya posted a 21.2% decline in net profit to RM1.41 million from RM1.79 million a year ago, while its revenue decreased by 14.6% to RM29.85 million from RM34.96 million a year ago.

For FY11 ended June 30, the company’s net profit increased 24-fold to RM68.72 million compared to RM2.86 million in FY10, while revenue increased 108.5% to RM352.89 million from RM169.24 million previously.

Mahajaya attributed the improved performance to a more conducive market and the completion of the disposal of several parcel of lands in Taman Damai Utama in Puchong.

Mahajaya’s on-going development projects include Bandar Damai Perdana in Cheras.

The company will pay a first and final net dividend of one sen per share for FY11 which will go ex on Feb 24.

Mahajaya’s market capitalisation was RM200 million based on yesterday’s close. Its shares traded between a 52-week high of 79 sen in January 2012 and a low of 50 sen on Dec 22, 2011.


This article appeared in The Edge Financial Daily, February 10, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Mahajaya jumps on buyout offer

Mahajaya Bhd jumped 13 per cent to 82.5 sen, on course for its highest close since February 2006.

The property developer received a buyout offer at 85 sen a share from a group already owning 72 per cent of the company, according to a stock exchange filing. - Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR: KLCI could open lower before staging recovery

KUALA LUMPUR (Feb 10): HwangDBS Vickers Research said the key FBM KLCI – which saw a surge in the last few minutes of trading on Thursday – could gap down at the opening bell before staging a subsequent recovery on Friday.

“Against a fairly resilient market backdrop, the benchmark index will likely tread above the resistance-turned-support level of 1,555 in the near term,” it said in its market outlook report.

As for external events, it said major U.S. equity indices were up slightly on Thursdayl night – rising between 0.1% and 0.4% – after Greek political leaders agreed to impose austerity measures in exchange for international bailout funds.

“After the recent sharp market rally, investors may be keen to look for laggards amid the prevailing positive sentiment. Despite the absence of visible fundamental catalysts, rotational plays will likely persist ahead.

“Hence, following the increased interest in water-related counters yesterday, laggard stocks within the sector like EngTex and Weida may also come into the limelight. Separately, Mahajaya’s share price should see action due to a takeover exercise at a cash offer price of 85 sen per share (versus its last done price of 73 sen),” said HDBSVR.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI edges up marginally at mid-day, but sentiment remains jittery

KUALA LUMPUR (Dec 22): The FBM KLCI edged up marginally at the mid-day break on Thursday, while key regional markets slipped as lingering concerns over the eurozone debt crisis kept investor sentiment jittery.

Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence, according to Reuters.

The FBM KLCI edged up 0.79 point to 1,485.77 at the mid-day break, lifted by select blue chips.

Gainers trailed losers by 212 to 380, while 274 counters traded unchanged. Volume was 629.41 million shares valued at RM397.79 million.

The ringgit weakened 0.53% to 3.1778; crude palm oil futures for the third month delivery rose RM13 per tonne to RM3,085; crude oil added 18 cents per barrel to US$98.85 while gold fell US$4.78 an ounce to US$1,610.45.

At the regional markets, Japan’s Nikkei 225 fell 0.58% to 8,411.33, Hong Kong’s Hang Seng Index lost 0.53% to 18,318.39, the Shanghai Composite Index was down 0.44% to 2,181.52, Singapore’s Straits Times Index lost 0.39% to 2,662.79, South Korea’s Kospi fell 0.23% to 1,844.20 and Taiwan’s Taeix shed 0.07% to 6,961.34.

On Bursa Malaysia, Boustead added 14 sen to RM5.80, Nestle and Top Glove added 12 sen each to RM56.30 and RM4.58, Supermax gained 11 sen to RM3.59, while PPB, Hartalega and Petronas Dagangan gained 10 sen each to RM16.96, RM5.65 and RM17.06 respectively.

Among banking stocks, Hong Leong Bank gained six sen to RM10.60, CIMB four sen to RM6.99 and Maybank one sen to RM8.38.

BAT was the top loser this morning and fell 28 sen to RM47.68; Petrol One down 13 sen to 84 sen, KAF 10 sen to RM1.62, Sungei Bagan seven sen to RM2.80, Mahajaya down 6.5 sen to 61 sen, while Utusan, Uzma, Batu Kawan, Quality Concrete and Kluang lost six sen each to 72 sen, RM1.56, RM17, RM1.24 and RM2.60 respectively.

Meanwhile, the actively traded stocks included TMC Life, Hibiscus, Sanichi, Flonic, IRCB, Envair and Rimbunan Sawit.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI slips at mid-morning as excitement at Asian markets fizzles out

KUALA LUMPUR (Dec 22): The FBM KLCI slipped at mid-morning on Thursday in line with the key regional markets and the lackluster close at Wall Street as the initial excitement over the inaugural long-term European Central Bank tender fizzled out, and concerns over the eurozone debt crisis re-surfaced.

At 10am, the FBM KLCI shed 0.26 point to 1.484.72.

Losers edged gainers by 248 to 153, while 204 counters traded unchanged. Volume was 298.13 million shares valued at RM128.88 million.

Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence, according to Reuters.

At the regional markets, Japan’s Nikkei 225 was down 0.50% to 8,417.78, Hong Kong’s Hang Seng Index shed 0.30% to 18,360.63, the Shanghai Composite Index fell 0.60% to 2,177.90, Taiwan’s Taiex was down 0.11% to 6,958.53, South Korea’s Kospi was shed 0.16% to 1,845.46 and Singapore’s Straits Times Index fell 0.13% to 2,669.97.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Thursday said the FBM KLCI’s resistance areas of 1,487 and 1,510 could cap market gains, whilst the obvious support areas may be located at 1,466 and 1,484.

“Due to the US markets’ mixed tone last night, we may have a quiet and benign day today,” he said.

On Bursa Malaysia, Jaya Tiasa fell nine sen to RM6.90, Uzma lost seven sen to RM1.55, Mahajaya down 6.5 sen to 61 sen, Batu Kawan and Public Bank fell six sen each to RM17 and RM13.14. while YHS, RHB Capital and MISC fell five sen each to RM1.69, RM6.96 and RM5.50 respectively.

Among the gainers, KLK added 20 sen to RM22.20, F&N and Malayan Flour Mills 18 sen each to RM18.08 and RM7.48, Top Glove 14 sen to RM4.60, while PPB, Nestle and Supermax added 12 sen each to RM16.98, RM56.30 and RM3.60.

The actives included Sanichi, IRCB, TMS, Rimbunan Sawit, Envair and Utopia.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.