Stocks To Watch: Ingress, WCT, MMC, Gamuda, YSP, Dijaya and SapuraKencana

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KUALA LUMPUR (April 16): Based on news flow and corporate announcements today, the stocks that may stir investor interest tomorrow (April 17) include Ingress, WCT, MMC, Gamuda, YSP, Dijaya and SapuraKencana.

Ingress Corporation Bhd announced that it has received a conditional take-over offer from “joint offerors” to acquire all shares in Ingress not already owned by them for a cash offer at RM1.85/share.

According to the company’s announcement, the “joint offerors” currently hold 25,162,800 shares or 29.81% stake in the company. Hence, the shares they need to buy will be 59,237,200 units or 70.19%.

At RM1.85, the offer would be at a discount of 33% to its latest reported book value of RM2.77 a share.

Ingress had posted a lower net profit of RM20.15 million in the financial year ended January 31, 2013, down from RM22.15 million a year earlier. Revenue however rose to RM859.23 million from RM658.74 million.

WCT Bhd announced that it has been awarded a construction job by 1MDB Real Estate Sdn Bhd worth RM169.26 million.

The contract covers Zone 3 of the Kuala Lumpur International Financial District (Tun Razak Exchange) in Jalan Tun Razak /Jalan Davis, Kuala Lumpur. The contract duration is 26 months and the company said it is expected to contribute positively to the group’s earnings and net assets for the financial years from 2013 to 2015.

MMC Corporation Bhd announced that its unit, MMC Engineering Group Bhd (MMCEG), a party to the 50-50 MMCEG-Gamuda JV, has been ordered to pay Wayss & Freytag Sdn Bhd a total arbitration sum of RM105 million.

In a filing to Bursa Malaysia, MMC said MMCEG today received the award of the arbitration, which directed that Wayss & Freytag’s claim against the JV succeeds in substantial part and the JV shall pay Wayss & Freytag the sum of RM96,297,229 together with interest thereon at 5% per annum from 16 April 2013.

In addition, the JV shall pay Wayss & Freytag the sum of RM9,000,000 as costs.

MMC said the award of the arbitration is not expected to have “any material impact” on the earnings of MMC Group for the financial year to end-2013. But in a separate filing, Gamuda Bhd said the impact on the earnings of Gamuda for the financial year ending July 31, 2013, is RM77.808 million. Gamuda also informed Bursa Malaysia that its director Datuk Seri Kamarul Zaman bin Mohd Ali had sold 30,000 Gamuda shares in the open market on April 11 at RM4.15 per unit.

Y.S.P. Southeast Asia Holding Bhd has proposed the payment of a single tier first and final dividend of 6.5 sen per share of RM1.00 each for the financial year ended 31 December 2012.

The entitlement date and date of payment of the dividend have yet to be determined, the company said in a filing to Bursa.

Dijaya Corporation Bhd, which announced yesterday that the company had entered into an agreement to acquire 1,172 acres of land in Canal City, Selangor, from PNSB, faced a denial from the state on the deal today.

Selangor’s caretaker Menteri Besar Tan Sri Abdul Khalid Ibrahim said the deal between Dijaya and Permodalan Negeri Selangor Bhd (PNSB) is yet to be set in stone.

"The deal has not been signed yet. Dijaya has to accept the terms of the deal which it has yet to do so," said Khalid, who is chairman of the wholly-owned state subsidiary.

Khalid was speaking to fz.com after a press conference on the Selangor Pakatan Rakyat manifesto for GE13.

Asked about the developer's announcement yesterday, Khalid said: "I think they had acted upon a letter from PNSB, which only outlines the terms of the agreement."

Dijaya said the land, priced at RM1.3 billion, could generate gross development value of RM20 billion in 15-20 years.

SapuraKencana Petroleum Bhd is expected to add another RM6 billion debts to its current level of RM5.9 billion, said RAM Ratings while reaffirming the AA3 rating of the company’s RM700 million Sukuk Mudharabah Programme (2011/2026) with a stable outlook.

RAM noted that as SapuraKencana is expected to take on RM6 billion of additional debt to fund the acquisition of Seadrill’s rigs, its potential debts could hit RM12 billion.

RAM said following the merger between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd, the group’s total debt increased to RM5.94 billion as at end-Jan 2013.

“SapuraKencana is also envisaged to take on about RM6 billion of additional debt to fund the acquisition of Seadrill’s rigs. As such, its borrowings could double to around RM12 billion, with its gearing ratio elevated to between 1.0 and 1.2 times over the next 2 years,” RAM said.