PetGas, OSK Ventures Int’l, OSK Prop, Dialog, Kawan Food, CI Holdings, Aeon Credit, Star Publication and OSK

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KUALA LUMPUR (May 12): Based on corporate news flow and announcements today, stocks in focus tomorrow (Wednesday, May 13) could include: Petronas Gas (PetGas), OSK Ventures International, OSK Property Holdings, Dialog Group, Kawan Food, C.I. Holdings, Aeon Credit Service, Star Publication (Malaysia) and OSK Holdings.

Petronas Gas Bhd (PetGas) saw its net profit jumped 7.6% to RM449.94 million or 22.74 sen a share for the first quarter ended March 31, 2015 (1QFY15), from RM418 million or 21.12 sen a share a year ago, on higher revenue from its gas transportation and gas processing segments.

Revenue rose 4.5% to RM1.1 billion, from RM1.05 billion in 1QFY14.

PetGas (fundamental:2.7; valuation: 0.5) also proposed a first interim dividend of 14 sen for the financial year ending Dec 31, 2015, payable on June 16.

OSK Ventures International Bhd posted a net profit of RM2.87 million, a decrease of 66.53% from RM8.56 million a year ago, on lower net fair value gain arising from quoted investments and lower returns from investment securities.

This translated into lower earnings per share (EPS) of 1.46 sen, compared to an EPS of 4.37 sen in 1QFY14.

OSK Ventures Int’l (fundamental: 1.2; valuation: 1.8) also saw its revenue declined by 28.28% to RM17.07 million, from RM23.8 million a year earlier.

OSK Property Holdings Bhd (OSK Prop)'s net profit doubled to RM48.34 million for the first quarter ended March 31, 2015 (1QFY15) against RM24.95 million a year ago, due to disposal of its 43.7ha freehold land in Kedah for RM56 million to PR1MA Corp Malaysia (PR1MA) last August.

In addition, lower operating cost and a higher level of construction work carried out during the period under review for on-going projects such as Pan’gaea in Cyberjaya, Mirage Residence in Kuala Lumpur, Atria SOFO Suites in Damansara Jaya and Bandar Puteri Jaya in Sungai Petani, also contributed to the jump in its 1QFY15 profit.

The better earnings translated into basic earnings per share of 19.85 sen, compared with 9.51 sen last year, OSK Prop (fundamental: 2.3; valuation:3)’s filing with Bursa Malaysia showed today.

Revenue for the quarter was also up 103.3% to RM284.02 million, from RM139.72 million in 1QFY14.

Dialog Group Bhd saw its profit for the third quarter ended March 31, 2015 surged 65.2% to RMRM669.76 million, against RM638.32 million a year ago, mainly due to contributions from its upstream activities.

Dialog (fundamental:2.1; valuation:0.5) told Bursa that its 3QFY15 revenue increased 4.3% to RM669.76 million, from RM638.32 million last year; and declared a 1 sen dividend, payable on June 30.

The group’s performance could have been better. However, its international segment saw revenue slipped on lower engineering, construction and plant maintenance activities in Singapore, fabrication in Australia and New Zealand, and lower sales of specialist products and services in India and Brunei.

For the nine-month period (9MFY15), its net profit grew 29.3% to RM211.5 million, from RM163.6 million in the same period last year. However, revenue fell 6.6% to RM1.78 billion, from RM1.91 billion a year earlier.

Substantial shareholders of Kawan Food Bhd are trimming their equity stake in the frozen food manufacturers to take advantage of the rally on its share price.

Filings to Bursa today showed two substantial shareholders have sold a combined 2.2% stake or four million shares.

Major shareholder and Kawan Food's (fundamental: 3; valuation: 1.1) executive director Gan Thiam Hock sold three million shares at RM1.80 per share yesterday (May 11), paring his interest to 11.99 million shares or 6.5%.

Another substantial shareholder, Japanese-based Goshenite Ltd, sold one million shares at the same price yesterday (May 11), paring its interest to 36.1 million shares or 19.7%.

Goshenite had disposed of 6.1 million shares or 3.3% stake off-market in the firm last month (April), also at the same price.

Edible oils manufacturer C.I. Holdings Bhd (CI Holdings) has acquired 60% in Palmtop Vegeoil Products Sdn Bhd (Palmtop) for RM8.25 million, to expand its current exports in manufacturing and packaging of resource-based products.

CI Holdings (fundamental: 1.86; valuation: 0.6)’s wholly-owned subsidiary Continental Resources Sdn Bhd (CRSB) would subscribe 8.25 million shares in Palmtop or 60% of the enlarged issued and paid up share capital of Palmtop — a company involved in buying, selling, manufacturing and packing of refined bleached deodorised (RBD) palm olein and all types of edible oils.

The proposed acquisition provided value added benefits for CRSB to expand its current export markets in manufacturing and packaging of resource-based products, including RBD palm olein and any other blended soft oils which are exported to various parts of the world.

Aeon Credit Service (M) Bhd  plans to raise up to RM1 billion ringgit via the issuance of sukuk to repay debts, provide financing for its customers and for working capital.

The proposed sukuk issuance of the seven-year Islamic commercial papers programme, based on the shariah principle of Murabahah, will have tenures of between one and 12 months.

The Islamic bonds programme has been approved and authorised by the Securities Commission Malaysia (SC) via a letter dated May 8, said Aeon Credit  (fundamental: 1.1; valuation 2.1).

Star Publications (Malaysia) Bhd has acquired the remaining 20% stake in Capital FM Sdn Bhd, the operator of radio broadcasting station CapitalFM, for RM1.5 million, making it a wholly-owned subsidiary of the group.

Star (fundamental: 2.5; valuation: 1.4) acquired the stake - from ISY Holdings Sdn Bhd and Multimedia Distribution & Marketing Sdn Bhd.

CapitalFM broadcasts to the Klang Valley and covers areas in Bidor, Sungkai and Tanjung Malim in Perak, as well as Nilai and parts of Seremban in Negeri Sembilan.

OSK Holdings Bhd (OSK) has obtained the green light from the Securities Commission Malaysia (SC) to merge its property arm OSK Property Holdings Bhd (OSK Prop) with PJ Development Holdings Bhd (PJD) and to inject the merged entity into the group, in a RM1.75 billion deal.

The SC, which had vide OSK (fundamental:2.3; valuation:3)’s letter dated May 11, approved the company’s multiple proposals put forth in October last year, to effect the consolidation which would see it diversifying into the property development, construction, manufacturing of building materials, and hospitality businesses.

The proposals include the proposed acquisitions of OSK Property Holdings Bhd (OSK Prop) and PJ Development Holdings Bhd (PJD), business diversification, exemption bonus and special cash dividend, which had also been approved under the equity requirement for the public companies.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)