Thursday, 3 May 2012

Stocks to watch Unisem, Daya Materials, Opcom, Heitech Padu, Hock Lok Siew Corp

KUALA LUMPUR (May 2): The FBM KLCI could be hard pressed to sustain its gains on Thursday, as early trade in Europe and Wall Street on May 2 pointed to weaker performance at the equity markets as disappointing euro zone data sparked new concerns over the region's fiscal health ahead of domestic economic data.

Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.9 last month from 47.7 in March, marking its lowest reading since June 2009. European shares erased earlier gains and the euro dropped to its lowest level in two weeks against the Japanese yen., according to Reuters.

A slew of announcemnts on Bursa Malaysia, including that of the termination of the share swap deal between MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] could spur investor activity, but whether the FBM KLCI can advance will be left to be seen.

Among the stocks that could be in focus are UNISEM (M) BHD [], DAYA MATERIALS BHD [], OPCOM HOLDINGS BHD [], HEITECH PADU BHD [] and Hock Lok Siew Corporation Bhd.

Unisem posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Daya Materials Bhd’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.

Opcom Holdings Bhd, a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

Heitech Padu Bhd secured a RM15.2 million job from the national registration department.

Hock Lok Siew Corp said on Wednesday that it had been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

Meanwhile, the RM1.1 billion share-swap deal involving beleaguered Malaysian Airline System Bhd (MAS) and AirAsia Bhd has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement, but the airlines have not announced when their respective securities would resume trading.

However, if MAS and AirAsia resume trade on Thursday, investor interest would certainly be high given the nature and magnitude of the original deal that is being called off.

In separate announcements, the two airlines on May 2 said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories



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Wednesday, 2 May 2012

MAS- AirAsia share swap scrapped

KUALA LUMPUR (May 2): The RM1.1 billion share-swap deal involving beleaguered MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement.

In separate announcements, the two airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories.



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Opcom clinches RM82 million variation order from Telekom

KUALA LUMPUR (May 2) : OPCOM HOLDINGS BHD [], a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

In a statement to the exchange, Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

“The variation order is expected to contribute positively towards Opcom's group earnings and net assets for the remaining period of the contract which is expiring on April 19, 2013.

“The risk factors which may affect the variation order include but not limited to ordinary business risks, competition risks, operation risks, economic risks and regulatory risks,” it said.



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HLS Corp now a PN17 company

KUALA LUMPUR (May 2): Hock Lok Siew Corporation Bhd said on Wednesday that it has been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

The company said that on April 4 this year, Malayan Banking Berhad's (MBB) claim of about RM18million against the company based on the corporate guarantees provided by the company has been allowed and that it had proceeded to file a notice of appeal to the Court of Appeal against that decision and an application for stay of execution of the judgement sum by MBB.

HLS said its external auditors had provided a matter of emphasis on the audited financial statements of the dompany for the year ended Dec 31, 2011 highlighting the negative shareholders' equity position of the Group and of the Company of RM8.12 million and RM14.14 million respectively.

“Consequently, the Company has triggered the Prescribed Criterias 2.1(a) and (e) of PN17 of the Main Market LR,” it said.



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Daya Materials unit gets RM270 million mixed development job in KL

KUALA LUMPUR (May 2): DAYA MATERIALS BHD []’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said on Wednesday that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.



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Heitech secures RM15 million NRD job

KUALA LUMPUR (May 2) : HEITECH PADU BHD [], an information and communication TECHNOLOGY [] specialist, has secured a RM15.2 million job from the national registration department.

Heitech told the exchange that it has accepted the letter of award for the wide area network maintenance services extension which is a one-year job starting from July 1 this year to June 30 next year.

“The letter of award will have a positive effect on the earnings per share. Nevertheless, the contract will have no material effect to the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the company for the financial year ending December 31, 2012,” Heitech said.

The firm said any further extension to the duration of the project is at the discretion of the government.



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Century Software 1Q net profit up 4.1% to RM2.03 million

KUALA LUMPUR (May 2); Century Software Holdings Bhd net profit forthe first quarter ended March 31, 2012 rose 4.1% to RM2.03 million from RM1.95 million a year earlier due mainly to higher level of maintenance income secured in relation to the financial management solutions (FMS) division.

The company said on Wednesday that revenue for the quarter rose 11.37% to RM8.52 million from RM7.65 million in 2011.

Earnings per share fell to 0.59 sen from 1.13 sen previously, while net assets per share was 16 sen.

On its prospects, Century Software said it was confident of achieving better performance for the financial year ending 31 December 2012 based on the market developments and market trends impacting the Group’s business divisions.

It said the recent award of new contracts by Pertubuhan Keselamatan Sosial (SOCSO) and Lembaga Hasil Dalam Negeri (LHDN) for a total contract value of RM39. 12 million to FMS would would provide a strong revenue traction for stable growth and sustainable profits.

“Payment Aggregate Solutions division (PAS) – this division has been streamlined to focus on the financial institution’s growing needs for e-transactions going forward.

“Wealth Management Solutions division (WMS) – active tendering of contracts for both Indonesian and Malaysian markets for wealth management solutions and banking services are being initiated, after this division successfully secured its maiden project in Malaysia for RM130,146.30 on Jan 10, 2012,’ it said.



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Unisem posts net loss RM13.52m in 1Q

KUALA LUMPUR (May 2: UNISEM (M) BHD [] posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said on Wednesday that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Unisem attributed the declines in its revenue and profit to reduced sales volume, a one-time retrenchment costs of RM5.7 million arising from a efficiency/redundancy exercise at PT Unisem and higher depreciation charges.

Loss per share was 2.01 sen compared to earnings per share of 0.75 sen previously.

Net assets per share was RM1.56.

On its outlook, Unisem said it expects its revenue and earnings in the second quarter to improve from that achieved in the first quarter and to continue to improve to the end of the financial year.



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