KUALA LUMPUR (May 11): Based on corporate news flow and announcements today, stocks in focus tomorrow (Tuesday, May 12) could include: Sunway, SapuraKencana, Tropicana, PetDag, Brahims’s, DSKH, Malaysia Smelting (MSCB), Magna Prima, Masteel, MRCB, Selangor Dredging (SDB) and Yee Lee.
Sunway Bhd has acquired five land parcels totalling 17 acres in Kelana Jaya, Selangor, which is slated for a mixed development with an estimated gross development value (GDV) of RM1.8 billion.
Sunway Dimension Stones Sdn Bhd, a wholly-owned subsidiary of Sunway Holdings Sdn Bhd which in turn is a wholly-owned unit of Sunway (fundamental: 1.5; valuation: 1.8), signed two sale and purchase agreements with Kelana Resorts Sdn Bhd and Kelana’s unit Viva Variasi Sdn Bhd, to purchase the land parcels for a combined RM286 million or RM386.31 per sq ft.
The total of 17 acres of land will allow the developer the flexibility and space to develop a contemporary mixed development with an unobstructed view of the golf courses with a serene living concept, amidst lush greenery and a beautiful lake.
To date, Sunway has unbilled property sales of RM2.5 billion. This, combined with its remaining landbank of 3,380 acres with a potential GDV of RM50 billion, will keep the group busy in the next 15 years.
SapuraKencana Petroleum Bhd, Malaysia’s biggest oil and gas services firm by market value, has locked in six contracts in Mexico, Indonesia, Vietnam and India with a combined value of up to US$269 million (RM969 million).
The group said the awards are expected to contribute positively towards the earnings and net assets per share of SapuraKencana (fundamental: 1.30; valuation: 1.40) for the financial year ending Jan 31, 2016.
Property developer Tropicana Corp Bhd’s net profit soared 146.3% to RM19.3 million in the first quarter ended Mar 31, 2015, from RM7.8 million in the previous corresponding quarter, on higher revenue recognition across key projects in the Klang Valley.
Revenue for the quarter was up 54.7% to RM390.9 million, from RM252.7 million a year ago.
Tropicana (fundamental: 1.3; valuation: 1.5) has achieved new sales of RM175.9 million in the first three months to Mar 31, 2015. It is also confident it will hit total sales comparable to last year’s figure of RM1.5 billion.
Meanwhile, it said the disposals of Tenaga Kimia Sdn Bhd and the Tropicana City Mall and Office Tower are expected to raise a combined gross proceeds of RM734.7 million for the group.
Petronas Dagangan Bhd (PetDag) recorded a 32.7% jump in its net profit to RM205.77 million in the first quarter ended March 31, 2015, from RM155.08 million a year ago, mainly due to lower operating expenditure.
However, Petronas Dagangan (fundamental: 1.7; valuation:1.1)’s revenue for 1QFY15 declined 26.4% to RM6.1 billion, as compared to RM8.29 billion last year, mainly as a result of a decrease in average selling price by 22%, coupled with a decrease in sales volume by 6%.
The group declared an interim dividend of 12 sen per share for quarter ended March 31, 2015. The ex-date is May 25, while payment date is on June 25.
Brahim’s Holding Bhd’s 70%-owned subsidiary, Brahim’s Airline Catering Sdn Bhd (BAC), has inked new catering agreements (NCAs) with Malaysia Airline Bhd (MAB) on May 10, as part of the MAS Recovery Plan.
The NCAs were in two separate contracts covering “Wide Body Aircrafts” flights and “Narrow Body Aircrafts” flights, and both shall commence on Sept 1, 2015.
The NCAs should remain in force for five years with an additional five years’ renewal, subject to no breach of any key events which will trigger a termination of the NCA, meeting of critical performance key performance index (KPI)s over the initial five years, and upon mutually-agreed pricing.
The NCAs are expected to contribute positively to the earnings and earnings per share (EPS) of Brahim’s (fundamental: 0.35; valuation:0.9) for the financial year ending Dec 31, 2015, and increase the net assets of the group.
DKSH Holdings (M) Bhd’s net profit fell 9% to RM12.23 million in its first quarter ended March 31, 2015, from RM13.50 million in the previous corresponding quarter, bringing its earnings per share (EPS) to 7.75 sen, from 8.56 sen.
However, its revenue for the quarter rose 10% to RM1.42 billion, from RM1.29 billion the year before.
DKSH (fundamental: 1.8; valuation: 1.8) attributed the lower quarterly profit to higher operating costs, increased by 10.6%, as the group secured new clients in the consumer goods business unit.
Malaysia Smelting Corp Bhd (MSCB) has sunk into the red with a net loss of RM2.9 million in the first quarter ended Mar 31, 2015, from a net profit of RM14.7 million a year ago.
Malaysia Smelting (fundamental: 0.55; valuation: 0.3) attributed the net loss to significant non-cash adjustments linked to tin price and foreign exchange (forex) fluctuations, and weaker tin prices.
Revenue for the quarter came lower at RM381.6 million, down 11% from RM429.1 million a year earlier, due to a decline in worldwide commodity prices in the first quarter this year, as compared to the same quarter last year.
Magna Prima Bhd saw its net profit go up more than three times to RM64.67 million in the first quarter ended March 31, 2015 (1QFY15), from RM18.89 million a year ago, on higher contribution from its property development segment.
This translates into a higher earnings per share (EPS) for Magna Prima (fundamental: 0.15; valuation: 0.3) at 19.43 sen for the quarter, as compared to 5.67 sen in 1QFY14.
Revenue was up 193.12% to RM390.58 million, from RM133.25 million a year earlier. The group said the improvements in its top and bottom lines were mainly due to the completion of "The Istana" project in Melbourne.
Malaysia Steel Works (KL) Bhd (Masteel)’s shares will be suspended from tomorrow (May 12), as it has failed to submit its annual audited accounts for the financial year ended Dec 31, 2014 (FY14) within the stipulated timeframe.
The deadline for Masteel (fundamental: 0.35; valuation: 1.4)’s FY14 annual audited accounts was April 30, 2015. The suspension will take effect from 9am, Tuesday, May 12, 2015, until further notice.
Malaysian Resources Corp Bhd (MRCB) aims to secure RM910 million in sales this year, from launches which it has in its pipeline worth up to RM1.3 billion in gross development value (GDV).
For 2015, the group plans to launch The Grid @ Kia Peng which has a GDV of RM400 million, followed by the Semarak City project here (RM400 million GDV), Phase 2 of 9 Seputeh along Old Klang Road (RM200 million GDV) and 3 Residences @ Kajang Utama (RM300 million).
MRCB (fundamental: 0.6; valuation: 0.8) is targeting to secure sales of about 70% to 80% of the total launches in 2015.
For its construction division, MRCB’s orderbook stands currently at RM1.2 billion, while its tenderbook is valued at around RM2 billion.
Selangor Dredging Bhd (SDB) reiterated it has been getting strong interest in its Hotel Maya Kuala Lumpur property for the past six months.
SDB (fundamental: 1.30; valuation: 3) also said it is open to any business opportunities and is looking for prospective business development.
The property developer was commenting on The Edge weekly's report, published on Saturday (May 9), that SDB has put the five-star hotel on the market at an estimated RM230 million, to focus on its core property development business.
SDB denied it had received any offer nor entered into any sales and purchase agreement (SPA) with any party.
Yee Lee Corp Bhd saw its net profit fallen 19.2% to RM7.4 million or 4.09 sen a share in the first quarter ended March 31, 2015 (1QFY15), from RM9.14 million or 5.13 sen a share a year ago, as a result of losses incurred by its plantation division.
Revenue for 1QFY15 however rose 2.86% to 177.97 million, from RM173.01 million in 1QFY14.
Yee Lee (fundamental: 1; valuation: 0.8)’s profit contribution from its associated company, Spritzer Bhd, also fell by 38.4% in 1QFY15, mainly due to recognition of share-based payments for share options granted under its Employees' Share Option Scheme.
(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.)