Stocks In Focus [11-08-2017]

(Aug 10): Based on corporate announcements and news flow today, stocks in focus tomorrow (Aug 11) may include the following: Mlabs, PetChem, HCK, SCGM, Key Alliance, MMC Corp, Suria Capital, Airports Holdings, Gas , O&C Resources and Sunway .

Mlabs Systems Bhd‘s wholly-owned subsidiary Multimedia Research Lab Sdn Bhd (MRL) has entered into a collaboration agreement with Thailand’s Onliner Company Ltd to share and exploit IT technologies to develop new markets in Thailand and overseas.

Under the collaboration, Onliner will design and set up free wifi and e-commerce services in Chatuchak Market, and will also develop a business model to generate revenue and earnings from the provision of services.

MRL will provide multimedia video conferencing and related technology, including technical support, to enhance functionality of the project. MRL will commit a value of RM800,000 in IT support, which includes its multimedia video conferencing technology.

Onliner will manage the day-to-day operations of the project, including funding, marketing and maintenance of the free wifi and e-commerce services, and is to deliver a 15% return per annum in cash on the financial value contributed by MRL under the collaboration commitment for a minimum of two years, commencing from the date of the collaboration agreement.

Petronas Chemicals Group Bhd‘s second quarter net profit rose 109% to RM964 million from RM462 million a year earlier, as revenue increased on higher sales volume and prices. Revenue climbed to RM3.96 billion in the second quarter ended June 30, 2017 from RM3.2 billion a year earlier.

Net profit for the first half of the year rose to RM2.26 billion from RM1.05 billion a year earlier, while revenue was higher at RM8.65 billion versus RM6.35 billion. The company proposed a dividend of 12 sen a share.

Bursa Malaysia issued an unusual market activity query on HCK Capital Group Bhd‘s share trade after the stock climbed as much as 30 sen to hit limit up today.

In response to Bursa Malaysia, HCK Capital said it is unaware of any reason for the spike in its today except for a couple of updates on corporate exercises.

The stock rose to its highest so far today at RM1.29. At closing, the stock closed at RM1.25, up 26.26% or 26 sen, for a market capitalisation of RM526.47 million.

Thermoform food packaging manufacturer SCGM Bhd has allocated RM133 million in capital expenditure costs to build two new factories as part of its expansion plan. The factories are being built in the Klang Valley (operations expected to begin by year-end) and Kulai Johor (construction to be completed by end-2018).

With the two factories fully operational, the company will have a total production capacity of 67.6 million kg per year by the end of its ending April 20, 2019, up from its current 36 million kg per year.

Key Alliance Group Bhd managing director Datuk Goh Kian Seng has resigned from his position with effect from today.

The 55-year-old has held the position since Aug 8, 2003. He is also its largest shareholder, with a 5.73% stake as at June 19.

MMC Corp Bhd has confirmed a report by The Edge Malaysia that it is in talks with Sabah-controlled Suria Capital Holdings Bhd to take up a stake in the latter’s wholly-owned Sabah Ports Sdn Bhd.

Similarly, Suria Capital confirmed the talks in a separate Bursa filing. However, no firm decision has yet been made in regards to the proposed disposal.

Malaysia Airports Holdings Bhd (MAHB) registered a 7.1% growth in passengers at its network of airports, including Istanbul Sabiha Gokcen International Airport (Istanbul SGIA), to 11.36 million in July 2017 from 10.61 million passengers a year ago.

International traffic grew 12.3% year-on-year (y-o-y) to 5.32 million passengers, while domestic traffic improved by 2.9% y-o-y to 6.04 million passengers.

Overall aircraft movements grew 2.1%, with international movements posting a 10.1% increase. However, domestic movements declined by 2.5% from July 2016.

From July 2016 to July 2017, MAHB said its network of airports handled 124.81 million passengers, up 8.5% from the 115.04 million passengers handled between July 2015 and July 2016 — the highest traffic handled over a 12-month period by the network.

Gas Malaysia Bhd posted a 1.25% increase in net profit for the second quarter ended June 30, 2017 to RM39.46 million or 3.07 sen per share, from RM38.97 million or 3.04 sen per share a year ago, on higher gross profit in line with the increase in volume of gas sold.

Its quarterly revenue was up 32.2% to RM1.29 billion from RM973.79 million a year ago due to higher volume of gas sold, upward revision of natural gas tariff and higher tolling fees.

For the cumulative six months of FY17, its net profit rose 4.05% to RM73.2 million or 5.7 sen a share compared to RM70.35 million or 5.48 sen a share a year ago. Meanwhile, its revenue was 27.87% higher at RM2.47 billion from RM1.94 billion last year.

O&C Resources Bhd entered into a 50:50 with Yayasan Pahang to develop a RM166 million mixed development project in .

Under the deal signed today, 100 acres of Yayasan Pahang’s 814-acre land will be developed, with work to commence in the first half of O&C’s financial year ending July 31, 2018.

Sunway Real Estate Investment Trust saw a 9.3% rise in its net property income (NPI) to RM98.52 million in the fourth quarter ended June 30, 2017 from RM90.17 million a year earlier, thanks to contributions from the retail and segments and gradual improvement from the office segment.

Net profit came in at RM218.84 million, up 78.1% from RM122.9 million a year ago. Earnings per share (EPS) improved to 7.43 sen from 4.17 sen. Quarterly revenue grew 7.2% to RM132.54 million in 4QFY17 from RM123.59 million previously.

Source: The Edge Markets

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