Stocks to watch : Mega First , Metronic Global , Public Bank, Eng Teknologi

KUALA LUMPUR (March 19) : Malaysian stocks could take the cue from more external news flow on Tuesday as investors weigh the prospects of a recovering US economy against less optimistic updates in China.

The spotlight this week will be directed at the US housing market data, deemed a crucial indicator of the health of the world’s largest economy. Investors are also taking note of China-based banks which are due to report their quarterly earnings.

On Monday, the FBM KLCI rose 0.14% or 2.2 points to finish at 1,573.6.

Stocks to watch on Tuesday include Mega First Corp Bhd and its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd, besides KOBAY TECHNOLOGY [] BHD [] and its 53.16% subsidiary Lipo Corp Bhd.

Heavily-traded METRONIC GLOBAL BHD [] and its 17%-owned unit Ariantec Global Bhd are also worth noting. Other stocks to watch include PUBLIC BANK BHD [], and ENG TEKNOLOGI HOLDINGS BHD [].

Mega First, a power plant builder and property developer , has served a takeover notice on Rock Chemical, a building materials entity, to acquire the remaining shares it does not own at RM2.10 each.

Mega First shares rose two sen to close at RM1.72 on Monday while Rock Chemical was up 31 sen to RM2.06 after both stocks resumed trading at 2.30pm.

Trading of shares in industrial component manufacturers Kobay and Lipo has been suspended since 3.05 pm on Monday, pending an announcement. Kobay was last traded on Friday at 79 sen while Lipo was last transacted at RM1.04 on Monday.

Metronic said it was informed by its managing director Dr Ng Tek Che that he was approached by parties who are keen to acquire his 5.23% stake in the firm.

Metronic,which specialises in system integration of intelligent building management and integrated security management systems, saw its shares rose 0.5 sen to 13 sen with about 177 million shares changing hands on Monday.

Ariantec, which offers information technology services, rose four sen to 13.5 sen with some 235 million shares done.

Public Bank is expected to maintain its 50% dividend payout ratio, chief operating officer Leong Kok Nyem said at the group’s AGM. Public Bank shares rose four sen to close at RM13.64.

The founders and major shareholders of Eng Teknologi who are in the midst of privatising the hard disk drive maker said the takeover offer price has been revised downwards from RM2.50 to RM2. Eng Teknologi shares closed unchanged at RM1.77.



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KLCI starts week on positive tone, select blue chips support

KUALA LUMPUR (March 19): The FBM KLCI started the week on a positive tone and closed slightly higher on Monday, lifted by gains of select blue chips including Petronas Gas, Tenaga and MISC.

The FBM KLCI closed 2.2 points up at 1,573.60. Turnover was 1.80 billion shares valued at RM1.51 billion. Declining stocks led advancers 434 to 319 while 329 counters were unchanged.

Asian shares edged higher and the dollar was steady against the yen on Monday after the U.S. market hit an almost four-year high last week and with higher European stocks reflecting signs of growing stability in the euro zone, according to Reuters.

The Shanghai Composite Index rose 0.23% to 2,410.18, Japan’s Nikkei 225 edged up 0.12% to 10,141.99, South Korea’s Kospi was up 0.62% to 2,0467.00. However, Hong Kong’s Hang Seng Index fell 0.92% to 21,121.67, and Taiwan’s Taiex shed 0.14% to 8,043.92 and Singapore’s Straits Times Index was down 0.68% to 2,990.09.

Ariantec Global was the most actively traded counter with 235.2 million shares done. The stock gained four sen to 13.5 sen.

Other actives included Metronic Global, Pan Malaysian Industries, Naim Indah Corp, IFCA MSC, Focus Point, Asia-Bio, Carotech and Hibiscus warrants.

Among the gainers were Dutch Lady, up 52 sen to RM30.50, Petronas Gas 40 sen to RM16.40, MISC 21 sen to RM5.36, HL Bank 18 sen to RM12 and Bumi Armada 16 sen to RM4.28.

Rock Chemical Industries rose 31 sen to RM2.06 or four sen below the RM2.10 takeover offer by Mega First Corp Bhd.

Bumi Armada added 16 sen to RM4.28. CIMB Equities Research raised the target price for Bumi Armada to RM4.80 from RM4.12.

It valued Bumi Armada at 18.2 times CY13 price-to-earnings, which is a 40% premium over its target market price range which was recently raised from 12.6 times to 13 times.

However, EPMB fell the most as investors were disappointed over its proposed acquisition of the 26km Maju Expressway (MEX) from Maju Holdings Sdn Bhd which was viewed as pricey.

Under the deal, the auto parts maker will pay RM1.7 billion for the highway concessionaire which included the debts. The MEX links the city centre in Jalan Tun Razak here to Putrajaya. OSK Research said the acquisition at RM1.7 billion would include assuming debts totaling RM550 million.

“Besides, the high interest cost will erode earnings in the immediate term. Given its excellent run but this pricey acquisition, we downgrade EPMB to a Neutral from a Buy, slashing its fair value from RM1.38 to RM1.15,” it said.

Other decliners were Cybertowers, down 14 sen to 31.5 sen, Top Glove 13 sen to RM4.83 while MAHB, Maybank and Mudajaya shed nine sen each to RM5.53, RM8.72 and RM3.01.



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Rock Chemical share price surges close to offer price

KUALA LUMPUR (March 19): Shares of ROCK CHEMICAL INDUSTRIES (M) [] Bhd (RCI) jumped in late afternoon on Monday after a hesitant start and was close to the takeover offer price of RM2.10.

At 4.03pm, it was up 31 sen to RM2.06. There were 142,200 shares done.

The FBM KLCI was up 1.44 points to 1,572.84. Turnover was 1.47 billion shares valued at RM1.08 billion. There were 278 gainers, 460 losers and 313 stocks unchanged.

Mega First Corp Bhd has served a takeover notice on its 60.43% subsidiary RCI to acquire the remaining shares it does not own at RM2.10 each.

Mega First, a power plant builder and property developer, said the takeover offer will give the acquirer full control of Rock Chemical, building materials entity, hence greater flexibility to dictate the subsidiary’s business direction.

RCI’s board of directors said it had received a notice of conditional take-over offer for the shares.

“The board does not intend to seek any other person to make a competing or alternative take-over offer for the offer shares,” it said.



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Mega First serves takeover notice on Rock Chemical

KUALA LUMPUR (March 19) : Mega First Corp Bhd has served a takeover notice on its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd to acquire the remaining shares it does not own at RM2.10 each.

In a statement to the exchange on Monday, Mega First, a power plant builder and property developer, said the takeover offer will give the acquirer full control of Rock Chemical, building materials entity, hence greater flexibility to dictate the subsidiary’s business direction.

At RM2.10 per Rock Chemical share, Mega First will have to spend RM35.2 million to acquire the remaining 39.57% or 16.76 million shares in the subsidiary.

Trading of shares in Mega First and Rock Chemical has been suspended since last Friday for the announcement. Mega First was last traded at RM1.70 on Thursday while Rock Chemical closed at RM1.75.



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Mega First offers to buy out Rock Chems

Mega First Corp, a Malaysian heavy-equipment manufacturer, made a buyout offer for Rock Chemicals Industries (Malaysia) Bhd at RM2.10 per share, according to a Kuala Lumpur exchange filing today.

Mega First already owns 60.4 per cent of Rock Chemical’s shares, it said. -- Bloomberg



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Finance stocks lift FBM KLCI

Finance stocks lifted share prices on Bursa Malaysia which ended the morning session steady today and in line with regional markets, dealers said.

The dealers also said the local market was supported by the overnight gains on Wall Street.

At lunch break, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 0.95 of a point to 1,580.33. It had opened 1.1 point higher at 1,580.48.

The dealers said buying sentiment was boosted on improved confidence in the growth outlook of the United States but investors remained cautious on concerns over China's economic progress.

The Finance Index jumped 63.1 points to 14,237.04, the Plantation Index eased 39.75 points to 8,574.21 and the Industrial Index increased marginally, 0.08 of a point, to 2,845.41

The FBM Emas Index improved 11.12 points to 10,895.63, the FBM Mid 70 Index added 26.811 points to 10,895.63 and the FBM Ace Index gained 56.7 points to 4,626.48.

Market breadth was positive with 329 advancers to 286 losers while 342 other counters were unchanged and 22 others suspended.

Trading volume stood at 1.375 billion shares valued at RM726.664 million.

Among the active stocks, Metronic Global added 4.5 sen to 12.5 sen, Ariantec Global edged up three sen to 8.0 sen and I-Power perked one sen to 6.5 sen.

Bursa Malaysia issued an unusual market activity query to Metronic Global Bhd today over the sharp increase in price and high volume of the company's shares.

Meanwhile, trading in the shares of Mega first Corp Bhd and its 60.43 per cent subsidiary, Rock Chemicals Industry (M) Bhd, was suspended from 9am-5pm today, at the request of both companies in separate statements to Bursa Malaysia.

Among the heavyweights, Maybank rose six sen to RM8.82, Sime Darby earned four sen to RM9.75, CIMB went up eight sen to RM7.65 and Petronas Chemicals inched up one sen to RM6.78. -- Bernama



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Trading of Mega First and Rock Chemical shares suspended

KUALA LUMPUR (March 16) : Trading of shares in Mega First Corp Bhd and its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd has been suspended from 9am to 5pm on Friday pending a material announcement, both companies said in separate statements to the bourse.

Mega First, a power plant builder and property developer was last traded at RM1.70 on Thursday while Rock Chemical closed at RM1.75.



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Results: Xidelang Q3 pre-tax profit improves

# Xidelang Holdings Ltd posted a higher pre-tax profit of RM32.11 million for the third quarter ended Sept 30, 2011 from RM29.59 million recorded in the same period last year.

In filing to Bursa Malaysia today, the company said its revenue rose to RM132.94 million from RM125.25 million previously.

The improvement was attributed to an increase in brand awareness, continuous research and development, increased consumer demands resulting in higher sales for the period under review.


# KKB Engineering Bhd posted a 63.5 per cent drop in pre-tax profit to RM11.32 million for the third quarter ended Sept 30, 2011, from RM31.02 million, recorded in the same period last year.

In a filing to Bursa Malaysia today, the company said revenue slipped to RM60.20 million, from RM68.63 million, recorded in the previous corresponding period.

Going forward, it expects manufacturing and engineering activities to contribute positively to the group's performance in view of the vast opportunities existing in the Sarawak Corridor of Renewable Energy.


# Bintai Kinden Corporation Bhd recorded a higher pre-tax profit of RM6.13 million for the second quarter ended Sept 30, 2011 compared with RM1.91 million in the same period last year.

In a filing to Bursa Malaysia today, the specialist engineering company said revenue for the period however decreased to RM57.24 million compared with RM91.68 million previously.

The company expects to see a satisfactory performance for this financial year with its current projects in hand for this financial year.


# United U-LI Corporation Bhd registered a lower pre-tax profit of RM2.58 million for the third qurter ended Sept 30, 2011 compared with RM4.76 million in the same period last year.

In a filing to Bursa Malaysia today, it said revenue for the period however rose to RM34.2 million compared with RM30.74 million previously.


# Mega First Corporation Bhd (MFCB) posted a higher pre-tax profit of RM36.348 million for the third quarter ended Sept 30, 2011 from RM30.082 million chalked up in the same period last year.

In a filing to Bursa Malaysia today, the company said revenue increased to RM151.962 million compared with RM127.049 million registered previously.

MFCB said the better pre-tax profit was largely attributable to higher contribution from the power and limestone divisions and gains from the disposal of quoted shares, partially offset, by lower contribution from the property and engineering divisions.


# MNRB Holdings Bhd posted a pre-tax loss of RM337,000 for the second quarter ended Sept 30, 2011 against a pre-tax profit of RM27.94 million in the same period last year.

The group recorded a pre-tax loss in the current quarter due to the provision made by the group's reinsurance subsidiary for the Thailand flood loss, the company said in filing to Bursa Malaysia today.

Revenue, however, rose to RM362.65 million from RM338.97 million.

MNRB attributed the higher revenue to the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.


# Can-One Bhd posted a higher pre-tax profit of RM9.794 million for the third quarter ended Sept 30, 2011 from RM6.747 million recorded in the same period last year.

In a filing to Bursa Malaysia today, the investment holding company with its main activities in the manufacture of cans as well as food products, said its revenue rose to RM160.555 million, from RM115.244 million registered in the same quarter previously.

The improvement in revenue was attributed to increase in production efficiency and economies of larger scale production.

It added the increase in production capacity and demand for liquid milk products also contributed to the growth. -- Bernama



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