Stocks to watch: Genetec, BAT, Hovid among attractive stocks

by **Cals** Tue 17 Sep 2013, 10:31

Stocks to watch: Genetec, BAT, Hovid among attractive stocks
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 17 September 2013 09:45
KUALA LUMPUR: Based on corporate announcements last Friday, some stocks that may attract attention today could include Genetec, BAT, Perwaja, Hovid, China Stationery, DPS and BToto.

The stock market closed yesterday as it was Malaysia Day.

Genetec TECHNOLOGY [] Bhd announced that it has secured new orders worth RM14 million. The new orders are from existing clients, who are mainly in the hard disc drive and automotive industries.

“The secured orders are expected to contribute positively to Genetec’s earnings for the financial year ending March 31, 2014,” the company told Bursa Malaysia.

The tenure of the contracts normally ranges from three to nine months depending on the size of the order and the scope of work, the company added.

British American Tobacco (Malaysia) Bhd (BAT) could be given a boost after RAM Ratings reaffirmed the former’s AAA rating of its RM700 million Medium-Term Notes Programme (2007/2020), with a stable outlook.

“BAT’s credit profile is supported by its entrenched market position and superior financial profile,” said RAM.

The group remains the market leader in the local tobacco-manufacturing industry, gaining 1.5 percentage points in its share of the industry last year to 60.7% (2011: 59.2%), added the rating agency.

RAM expects BAT’s cashflow-protection measures to stay superior, supported by its well-established market position and strong brand equity.

HOVID BHD [] announced that the company had declared an interim dividend of 1.3 sen, less 25% tax, in respect of the financial year ended June 30, 2013.

China Stationery Ltd announced that its foreign major shareholder Angus Kwan Chun Jut had disposed of 42 million shares in China Stationery Ltd from Sept 10 to Sept 12, at 20 sen and 21 sen apiece.

This disposal has reduced Kwan’s stake in the company to 27.43% from 30.81%.

DPS RESOURCES BHD [] last Friday proposed renounceable rights issue of up to 660 million shares on the basis of two rights for every one existing DPS share held,together with up to 396 million free detachable warrants on the basis of three rights warrants for every five rights shares subscribed.

It has also proposed an 80% capital reduction through cancellation of 40 sen off the par value share to RM0.10 each.

NARRA INDUSTRIES BHD [], which hit limit up again last Friday after rising 30 sen or 30% to RM1.30, could continue to rise today or fall on profit taking.

Last Thursday, Narra shares hit limit to end at RM1.00 following news that it was buying over the cement and concrete business of its sister company, HONG LEONG INDUSTRIES BHD []. Both companies are controlled by tycoon Tan Sri Quek Leng Chan.

A senior dealer told theedgemalaysia.com that it is easy for the stock to hit limit up on positive news as there are limited scripts of Narra in the market.

A senior researcher sees Narra, currently involved in the design, manufacture and supply of furniture and interior design fit-out works, to be worth RM1.50 per share after the completion of the exercise.

[You must be registered and logged in to see this image.]

BERJAYA SPORTS TOTO BHD []’s Philippine listed unit, Berjaya Philippines Inc, has announced to the stock exchange on its purchase of additional shares in H R Owen plc of UK and the upward revision of its offer price from 130 (RM6.8) pence to 170 pence per share.

Berjaya Philippines Inc is offering to buy over the UK company in cash.

This article first appeared in The Edge Financial Daily, on September 17, 2013.