Stocks to watch: DRB-Hicom, Pos Malaysia, Iris, KLK

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Stocks to watch: DRB-Hicom, Pos Malaysia, Iris, KLK PDF Print

Tags: DRB-Hicom Bhd | HPI Resources Bhd | IRIS Corp Bhd | Kuala Lumpur Kepong Bhd | Pos Malaysia Bhd | PPB Group Bhd | Ranhill Bhd
Written by Joseph Chin of theedgemalaysia.com
Saturday, 23 April 2011 11:10
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KUALA LUMPUR: Sentiment on Bursa Malaysia should see some improvement in the week ahead on Monday, April 25 following the fresh corporate newsflow.

However, worries about the impact of the continuing high oil price, inflationary pressures and weakening consumer demand could sap some of the enthusiasm. Oil and gas related counters and also infrastructure stocks could provide some support.

The FBM KLCI index closed 3.58 points down to 1,522.75 on Friday, weighed by losses including at Genting, IOI Corp and Genting PLANTATION []s.

At Bursa Malaysia, stocks which could see trading activity are DRB-HICOM BHD [], POS MALAYSIA BHD, Iris Corp Bhd and KUALA LUMPUR KEPONG BHD . Also in focus could be PPB GROUP BHD, HPI RESOURCES BHD and RANHILL BHD.

Khazanah Nasional Bhd has divested its strategic 32.21% stake in Pos Malaysia to DRB-Hicom Bhd at RM3.60 per share or RM622.79 million, deemed a landmark divestment by the government’s investment arm of its entire stake in a major government-linked company.

On Friday, Pos Malaysia’s share price closed two sen higher at RM3.37 with 595,000 shares done while DRB-Hicom fell two sen to RM2.30 with 2.32 million units transacted.

Pos Malaysia said based on the audited results for the financial year ended Dec 31, 2010, its audited consolidated net profit was RM67.11 million and audited consolidated net assets RM828.59 million.

Iris Corp has secured a US$149.96 million(RM451.61 million) contract from the government of Tanzania to supply 25 million identification cards based on the Smartcard TECHNOLOGY [].

Iris Corp said the contract was for five years, comprising 36 months for implementation and 24 months for maintenance and support. The scope of work and deliverables were 25 million smart cards which shall be used as the National ID cards of Tanzania

Kuala Lumpur Kepong Bhd said its unit KL-Kepong Industrial Holdings Sdn Bhd sold its remaining 40% stake in Barry Callebaut Malaysia Sdn Bhd to Luijckx BV for RM117.68 million cash.

HPI Resources’ net profit for the third quarter ended Feb 28, 2011 soared 121.5% to RM6.94 million from RM3.13 million a year earlier, driven by higher demand. Revenue for the quarter rose by 11.6% to RM105.43 million from RM94.46 million in 2010, while earnings per share was 12.43 sen.

HPI said the strong performance was primarily the result of both its paper milling and corrugated packaging divisions demonstrating double-digit expansion in revenues and operating profits.

Malaysian palm oil trader -- Pacific Inter-Link Sdn Bhd – has filed a suit against PPB Group Bhd’s 18.3% owned Wilmar International Ltd, seeking US$444 million in damages.

Wilmar said its unit Wilmar Trading Pte Ltd (WTPL), was served with a writ of summons on Thursday issued by the High Court of Malaya at Shah Alam.

Pacific Inter-Link had alleged defamation and unlawful interference with its economic interests and business with regard to WTPL's contracts of sale of palm oil products with other parties.

Ranhill Bhd’s unit Ranhill Power Sdn Bhd has received the Securities Commission’s approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years.

The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd.

The funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION of Senai-Desaru Expressway.

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Ranhill gets SC nod to issue up to RM800m sukuk

Ranhill daily chart

KUALA LUMPUR: RANHILL BHD’s unit has received the Securities Commission’s approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years.

Rahnhill said on Friday, April 22 Ranhill Power Sdn Bhd secured the approval to issue the Sukuk Musharakah of up to RM800 million in nominal value which would be in two tranches.

Tranche 1 Sukuk of up to RM300 million will be guaranteed by Maybank Islamic Bhd and Tranche 2 Sukuk of up to RM500 million will be guaranteed by Danajamin Nasional Bhd.

Both tranches of the Sukuk have been assigned with rating of AAAIS(bg) and AAAIS(fg) respectively by Malaysian Rating Corporation Bhd.

“The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd,” it said.

It added the funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION of Senai-Desaru Expressway.

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Ranhill

Based on the daily chart we can see that volume at this counter start increasing starting end of last year which is related to world oil price increased. Current support is at RM0.83 and current resistance is at RM0.92.

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Stocks to watch: IJM Land, MRCB, Dialog, Talam

MRCB weekly chart

KUALA LUMPUR: Shares of IJM Land and MALAYSIAN RESOURCES CORP Bhd (MRCB) will be the stocks to watch on Monday, Jan 3 after their shares slid ahead of the negative news that the proposed merger had fallen through.

However, AmResearch said it was maintaining its BUY rating on both IJM Corp Bhd and IJM Land Bhd with unchanged fair values of RM7.52 a share and RM3.88 a share, respectively.

IJM Land weekly chart

“IJM Land was sold down (pre-suspension share price of RM2.86) this morning (Jan 30) prior to the announcement that the proposed merger with MRCB had been aborted. We are unfazed. The issue now is the relative investment merits of IJM Corp and IJM Land. We believe they have enough strong catalysts for them to move forward on their own,” AmResearch said in a research note after the announcement.

Other stocks which could be in focus on Monday include DIALOG GROUP BHD, Berjaya Corp Bhd, Talam Corp Bhd, RANHILL BHD and SilverBird Group Bhd.

Dialog’s subsidiary Dialog E&C Sdn Bhd has secured a RM64.6 million contract from Asean Bintulu Fertilizer Sdn Bhd (ABF) to build a cooling tower in Bintulu, Sarawak.

Dialog weekly chart

The scope of work would involve the engineering, procurement, CONSTRUCTION, commissioning and associated works of the new tower.

Berjaya Corp net profit for the second quarter ended Oct 31, 2010 jumped 66.9% to RM86.54 million from RM51.83 million a year ago.

The better performance was due mainly to write-back of impairment in value of investment in associated companies and gain on disposal/partial disposal of subsidiary companies as well as gain arising on accretion of interest in an associated company and lower finance costs.

BJCorp’s revenue for the quarter rose 6.2% to RM1.72 billion from RM1.62 billion in 2009. Earnings per share were 1.97 sen while net asset per share was RM1.39.

Talam posted net loss of RM83.29 million in the third quarter ended Oct 31, 2010 compared with net profit of RM118,000 a year ago, mainly due to losses on disposal of two parcels of development PROPERTIES totaling RM43.85 million and foresees a challenging remaining financial year for the group.

Talam weekly chart

Standard & Poor's Ratings Services has placed its “B” long-term corporate credit rating of Ranhill Bhd on CreditWatch with negative implications. It also placed its B- issue rating on US$220 million 12.5% senior unsecured notes due October 2011 issued by Ranhill (L) Ltd on CreditWatch with negative implications.

SilverBird’s net profit for the fourth quarter ended Oct 31, 2010 rose 36.66% to RM835,000 from RM611,000 a year ago mainly due to the sales growth in its core business of consumer food division.

Revenue for the quarter rose 6.75% to RM153.92 million from RM144.19 million in 2009. Earnings per share were 0.22 sen while net assets per share were 53 sen.

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Ranhill false breakout???

Ranhill weekly chart

Do you noticed that Ranhill sky rocket yesterday to RM0.96 from RM0.79? Is it false breakout? Ranhill closed yesterday at RM0.86. Current resistant level is at RM0.875 and support at RM0.76.

I am not aware of that. That's why I am still holding this stock. I am sure will take partial profit if somebody alert me about this.

Nevermind, the daily downtrendline already broken. Oil price is hiking to USD90. Ranhill as a company oil and gas should benefit from this oil price increased.

Happy investing!

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Bought Uchitec at RM1.32

Our stock market currently in bullish mode. Bought Uchitec yesterday at RM1.32.

Last week I sold my Pelikan at RM1.25 and Eksons at RM1.02. Tried to decrease the quantity of my stock portfolio. After this I will avoid the penny stock such Saag and Hubline. The cheap stock is much easy to be manipulated.

Current my stock portfolio are as follow:

Ranhill at RM0.855
Saag at RM0.125
Latexx at RM3.65
Annjoo at RM2.65
Hubline at RM0.24
Uchitec at RM1.32

I am not monitor closely my share actually since I trade it in longer timeframe. But if the stock price exceed 10% just trading for a few days, I will take partial profit. 10% for me is good enough than nothing. Am I right? How about you?

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Ranhill trapped in symetrical Triangle

Ranhill trapped in symetrical triangle in both weekly and daily chart. Longterm showed uptrend with next resistant at RM1.17 and current support at Rm0.93. Next support seen at RM0.83 if the current support fail.

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