Stocks To Watch AirAsia, AAX, MPHB, PIE, MMC, Zecon, stars of InvestAsean, BHS, Muar Ban Lee, Felda

by **Cals** Thu 03 Apr 2014, 08:07

Stocks To Watch AirAsia, AAX, MPHB, PIE, MMC, Zecon, stars of InvestAsean, BHS, Muar Ban Lee, Felda

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 02 April 2014 19:24

KUALA LUMPUR (April 2): Based on news flow and corporate announcements as at 7.00 pm today, the companies that may be in focus tomorrow include the following:

AirAsia Bhd's CEO Aireen Omar has appealed to Prime Minister Datuk Seri Najib Tun Razak to intervene and resolve the klia2 airport issue that has seen numerous delays for its opening.

Yesterday, the budget airline and its long-haul affiliate AirAsia X (AAX) said they would still be based at the current low-cost carrier terminal, even after May 9, due to a number of unresolved pressing issues.

Today, AirAsia in a statement said Najib’s intervention is crucial in resolving this national issue as it sees potential for klia2 to be a global aviation hub.

“We are more than ready to move to klia2 but we must move under the right circumstances,” stressed Aireen.

“We will be the anchor tenant at the new airport, accounting for more than 80% of klia2’s traffic, hence the critical need for klia2 to be fully functional and operationally viable in the long term.”

Yesterday, deputy Transport Minister Datuk Abdul Aziz Kaprawi told reporters the current low-cost carrier terminal (LCCT) will be shut down a week after klia2 opens for operation on May 2.

The latest development has caused analysts to cut their earnings forecasts for airport operator Malaysia Airports Holdings Bhd (MAHB).

PIE Industrial Bhd has proposed dividends totalling 20 sen for shareholders for the year ended December 31, 2013.

The dividends, decided today, comprise a special single-tier dividend of 8 sen per share, and a first and final single-tier dividend of 12 sen per share.

The company said the entitlement date and date of payment of the dividends have yet to be finalised.

MMC Corporation Bhd has recommended the payment of a final single-tier dividend of 3 sen per share for the financial year ended Dec 31, 2013.

In a statement to Bursa Malaysia, the firm said the notice of book closure and date of payment of the final single-tier dividend will be determined later.

Zecon Bhd is facing a major obstacle in its privatisation move after a director and substantial shareholder decided to vote against the proposal.

Construction entity Zecon said Datuk Haji Bolhassan Di was against the privatisation involving a selective capital reduction and repayment (SCR).

Zecon said Bolhassan, who owned 9.66% of Zecon, had indicated in a letter his "irrevocable decision, following his further review, to vote against the proposed SCR at the EGM of Zecon to be convened in relation to the proposed SCR".

Bolhassan directly holds 11,500,000 Zecon shares, representing approximately 9.66% equity interest in Zecon or 25.71% of the voting shares held by the entitled shareholders, Zecon said.

For the privatisation to succeed, the proposal will require at least 50% of entitled shareholders at the EGM to approve the SCR. The proposal also needs to secure at least 75% in value to the votes attached to the Zecon shares held by the entitled shareholders.

Berjaya Auto Bhd, Cahya Mata Sarawak Bhd, Oldtown Bhd, Sime Darby Bhd, Top Glove Corporation Bhd and Wesport Holdings Bhd are among the nine companies listed as “stars of InvestASEAN 2014” by Maybank KimEng.

All these companies enjoy a “buy” rating from the prominent research house.

The other three companies in the list released today are BIMB Holdings Bhd, Felda Global Ventures Bhd and Malayan Banking Bhd.

BHS Industries Bhd announced it has sold seven parcels of land and a Singapore unit for a total of RM9.88 million.

The rationale, as stated by the company, is to enable the company to unlock and realise the value and capital appreciation of the Johor land and Singapore properties.

“The proposed disposals will enable BHS to realise an estimated one-off gain of RM980,719 arising from the disposals of the Johor land and an estimated one-off gain of RM1,326,906 arising from the disposal of BHS Singapore,” the company said.

Muar Ban Lee Group Bhd plans to pay a second interim single-tier dividend of three sen a share for financial year ended December 31, 2013 (FY13).

The ex-date for the dividend falls on April 15 this year, said Muar Ban Lee that manufacturers oil seed-crushing machinery. Payment is planned on April 30.

Felda Global Ventures Holdings Bhd is expecting newly acquired Pontian United Plantations Bhd (PUP) to contribute 20% to the group's 2014 net profit.

"We will see that 20% of the group's net profit in 2014 will come from PUP," said FGV group president and CEO Dr Mohd Emir Abdullah.

"PUP has started contributing to group earnings as of the last quarter of 2013 and will fully contribute in 2014," Emir told the press by the Kinabatangan river during a visit to PUP's Lahad Datu estate today.

PUP has some 15,600 ha in Sabah, compared with FGV's total 467,300 hectares.

FGV completed the acquisition of PUP in October last year for a total sum of RM1.2 billion.