June 2nd- Stocks To Watch 7-Eleven, YTL, Padini, SAB, Kimlun, Kinsteel, Len Cheong, Formis, Hubline, Scomi stocks

by **Cals** Fri 30 May 2014, 20:05

Stocks To Watch 7-Eleven, YTL, Padini, SAB, Kimlun, Kinsteel, Len Cheong, Formis, Hubline, Scomi stocks

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 30 May 2014 19:53

KUALA LUMPUR (May 30): Based on corporate results reported to the stock exchange as at 6.45 pm today, the companies that may be in focus on Monday (June 2) could include the following:
7-Eleven Malaysia Holdings Bhd (SEM), which gained 5% at the start of its maiden trades today, ended up with 11% gains in active trades.
7-Eleven, whose shares were priced at 1.38 ringgit each in its IPO, was chased by retail investors today after raising RM732 million in the initial public offering (IPO) to fund store expansion.
At 5.00 pm market close, the company’s share rose 15 sen or 10.9% to end at RM1.53 after trading at a high of RM1.55 earlier in the day.
The stock attracted trades of some 202 million shares to rank the most active counter.
YTL Corporation Bhd and Padini Bhd, which are among stocks that have been excluded from the Securities Commission Malaysia (SC)’s updated Shariah-compliant list, fell sharply today.
At market close, YTL fell 12 sen or 7% to RM1.63 while Padini fell 8 sen or 4% to RM1.93.
Public Investment Bank Bhd said there is some selling as the SC has removed the six-month grace period for securities trading in-the-money, with a new directive for immediate disposal.
It is unsure whether selling will continue for the two stocks on Monday. If investors feel they are oversold, the stocks could rebound.
The SC yesterday released the updated list of Shariah-compliant securities approved by its Shariah Advisory Council.
Southern Acids Bhd (SAB) said its net profit for the fourth quarter to end-March 2014 rose 19% to RM10.24 million, up from RM8.62 million a year ago.
Revenue for the quarter also rose, increased by 3.5% to RM140.18 million from the preceding corresponding quarter’s revenue of RM135.51 million.
For the full year to March 2014, net profit rose to RM40.67 million from RM36.62 million in the previous year despite its revenue having fallen 6.5% to RM544.05 million from RM581.43 million.
For the coming financial year ending 31 March 2015, SAB said: “The group’s performance will remain challenging and as such will take necessary steps to maintain the good financial performance.”
Kimlun Corp Bhd's net profit rose 117% to RM19.5 million in the first quarter ended March 31, 2014 from RM9 million a year earlier. Revenue was higher at RM335.1 million versus RM214.4 million.
Kimlun said profit growth came on higher revenue from its construction, property development, besides manufacturing and trading divisions.
"The board expects 2014 as an exciting year for the group on the back of estimated balance order book of approximately RM2.09 billion as at 31 March 2014. The sizable balance order book together with the estimated unbilled property sales value of RM131 million provides a good earnings visibility to the group.”
Kinsteel Bhd's net loss came to RM94.6 million in the quarter ended March 31, 2014 on revenue of RM162.14 million due to output disruption at its unit Perwaja Steel Sdn Bhd (PSSB), Kinsteel told Bursa Malaysia today.
As Kinsteel has change its financial year end from December 31 to June 30, there are no comparative figures from a year earlier.
"The zero production was a result of the gas and electricity supply curtailment by Petronas and TNB (Tenaga Nasional Bhd) in PSSB at the material time," Kinsteel said.
Kinsteel's cumulative 15-month net loss widened to RM299.8 million from a net loss of RM110.2 million in the year to end-2012. Revenue was lower at RM1.51 billion versus RM2.15 billion.
Len Cheong Holding Bhd registered real estate revaluation gains of RM23.96 million for the first quarter ended March 31, 2014.
The furniture manufacturer said the three freehold industrial properties comprised land and building in the Senawang Industrial Area in Negeri Sembilan.
"The recognition of revaluation surplus of RM23.96 million has resulted in an increase in net assets per share of the group by approximately RM0.30 for the 3-month period ended 31 March 2014," Len Cheong said.
Formis Resources Bhd posted net profit of RM14.1 million in its fourth quarter ended March 31, 2014, compared to a net loss of RM40.2 million in the previous year’s corresponding quarter.
However, revenue for the quarter fell 19% to RM88.5 million, from RM109.7 million in the year before.
For the full financial year, net profit stood at RM30.9 million from a net loss of RM40.2 million in the preceding financial year, while cumulative revenue rose to RM351.6 million from RM338.6 million.
Going forward, the company said: “The board is optimistic that the group’s financial performance in the new financial year will remain positive.”
Hubline Bhd posted a net profit of RM2 million in the second quarter ended March 31, 2014 from a net loss of RM31.1 million a year earlier.
Hubline said revenue was higher at RM91.8 million versus RM91.4 million.
First-half net profit came in at RM5 million compared with a net loss of RM29.8 million a year earlier. Revenue, however, fell to RM184.4 million from RM199.1 million.
Scomi Group Bhd posted a net loss of RM4.0 million and revenue of RM421.3 million for its fourth quarter ended March 31, 2014.
For the full year, net profit stood at RM5.1 million, while cumulative revenue was RM1.65 billion.
The group said there is no comparable period for its performance, as the group changed its annual reporting date to March 31, 2013, from December 31, 2013, in the previous financial period.
Quarter-on-quarter, profit before tax rose to RM23.0 million in 4QFY14, from RM19.4 million in 3QFY14, while revenue was lower at RM421.3 million compared to RM469.6 million.
Going forward, the group expects increasing activity for its oilfield services division and marine services division, driven by higher level of activity in the oil and gas (O&G) industry in South East Asia.
“The group remains optimistic of benefiting from the growth in O&G exploration & production activities, specifically in the South East Asia region, and the anticipated increase in transportation infrastructure projects in Malaysia, Brazil and India,” said Scomi.
Scomi Energy Bhd reported net profit of RM11.4 million for its fourth quarter ended March 31, 2014, and revenue of RM373.0 million.
For the 12 months to March 31, net profit stood at RM81.4 million while cumulative revenue was RM1.42 billion.
The group said there is no comparable period for its performance, as it has changed its annual reporting date to March 31, 2013, from December 31, 2013.