Stocks to watch: Gadang, KNM, Top Glove, AirAsia

KUALA LUMPUR: Stocks which could see trading interest on Wednesday, Oct 12 include GADANG HOLDINGS BHD [], KNM GROUP BHD [], TOP GLOVE CORPORATION BHD [] and AIRASIA BHD [] following the recent corporate developments.

Gadang secured a RM410.87 million contract from the Public Works Department to complete the abandoned works at the Shah Alam Hospital. Its unit Gadang Engineering (M) Sdn Bhd had accepted the letter of acceptance for the project at the 300-bed hospital.

KNM Group Bhd has secured a conditional US$200 million (RM638 million) contract to build a waste to energy plant in Sri Lanka from OCTAGON CONSOLIDATED BHD []’s subsidiary Orizon Renewable Energy (Private) Ltd.

KNM Process Systems Sdn Bhd was awarded the contract to build the plant which would have the capacity to process up to 1,000 tons per day of municipal solid waste to generate a minimum of 40 MW of gross electrical energy in Colombo.

Top Glove’s net profit for the fourth quarter ended Aug 31, 2011 fell 42% to RM26.09 million from RM45.01 million a year earlier, due mainly to high latex prices, weaker US dollar and oversupply situation.

Revenue for the quarter edged up to RM541.84 million from RM541.39 million in 2010. Earnings per share fell to 4.22 sen from 7.30 sen in 2010, while net assets per share was RM1.85.

For the financial year ended Aug 31, Top Glove’s net profit fell 53.86% to RM113.14 million from RM245.23 million in 2010, on the back of revenue RM2.05 billion.

AirAsia scrapped the proposed joint venture with Vietjet Aviation Joint Stock Company after some of the conditions were still not fulfilled despite the joint venture agreements were signed in February 2010.

The low-cost carrier said some of the conditions under the JV agreements remained outstanding include regulatory approval for Vietjet to employ the AirAsia brand across its commercial operations.