June 5th - Stocks To Watch AirAsia, YTL Power, Tambun Indah, Tenaga, RHB Capital, Genting Malaysia

by **Cals** Thu 05 Jun 2014, 03:18

Stocks To Watch AirAsia, YTL Power, Tambun Indah, Tenaga, RHB Capital, Genting Malaysia

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 04 June 2014 19:06
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KUALA LUMPUR (June 4): Based on corporate announcements today, the stocks that may be in focus tomorrow include:

AirAsia Bhd’s unit, AirAsia India, entered the Indian market with a big bang when tickets for its maiden flight from Bangalore to Goa on June 12 were sold out within 10 minutes of opening for sale, said Bernama.

Its 25,000 promotion seats were also taken up within 48 hours of opening for booking on May 30.

"We are very excited by the feedback we received from the market. Our motto has always been to make everyone fly and we have already begun to show that we are true to our promise," said CEO Mittu Chandilya in a statement.

The airline, a joint venture between AirAsia, Tata Sons and Arun Bhatia's Telestra Tradeplace, was granted flying licence by aviation regulator, Directorate General of Civil Aviation, early last month.

YTL Power International Bhd, via its unit YTL Communications Sdn Bhd, has acquired telecommunications firm Konsortium Jaringan Selangor Sdn Bhd (KJS) for RM49.8 million.

KJS is principally engaged in the business of planning, implementation and maintenance of telecommunication towers and telecommunication related services.

YTL Power said its 60%-owned YTL Communications had on June 2, 2014, entered into an agreement with Kumpulan Darul Ehsan Bhd and Ingres Software (M) Sdn Bhd for the acquisition of 1.5 million ordinary shares or 60% of the capital of KJS.

“The proposed acquisition is expected to contribute positively to the firm’s consolidated earnings in the medium to long term,” said YTL Power.

Tambun Indah Land Bhd’s undeveloped land bank in Pearl City is set to expand to 844 acres with the acquisition of a 209 acre land for RM150 million, according to its Managing Director Teh Kiak Seng.

“The proposed land acquisition will enlarge the group’s remaining ongoing and undeveloped landbank in Pearl City to 844 acres from 635 acres previously”, said Teh in a press statement today.

Teh added that the parcel of land is a good opportunity to strengthen the company’s position as a key developer in mainland Penang.

The acquisition would be funded by the group’s internally generated funds and bank borrowings.

The transaction is expected to be completed by the fourth quarter ending 31 December 2014.

Tenaga Nasional Bhd may be in focus following the news that Mitsui & Co. of Japan will build and operate a $3.3 billion coal-fired power plant in Malaysia in partnership with a local state-owned company.

Construction of the project will start this year, Bloomberg reported quoting Mitsui’s statement.

The plant will have an annual capacity of 2,000 megawatts and begin generation in 2018 to meet a 25-year sales contract with state-owned utility Tenaga Nasional Berhad, Mitsui said.

Besides partnering with 1Malaysia Development Berhad, Mitsui said it will also work with Japanese equipment manufacturers IHI Corp. and Toshiba Corp. and South Korean engineers and builders including Hyundai Engineering Co. to deliver the so-called ultra super critical coal-fired plant. The technology aims to cut greenhouse gas emissions.

RHB Capital Bhd said RHB Banking Group has, on May 30, 2014, been given a banking license in Laos.

It said it has been granted with the Business Registration License by the Ministry of Industry and Commerce of Lao People’s Democratic Republic for RHB Bank Lao Limited, a subsidiary of RHB Bank Berhad.

RHB Bank Lao Limited will commence its business operations with effect from 6 June 2014.

Genting Malaysia Bhd’s corporate credit ratings have been assigned AAA/Stable/P1 by RAM Ratings.

Genting Malaysia is the sole licensed casino operator in Malaysia and one of the leading casino operators in the UK. The group also operates a video lottery terminal facility in the state of New York in the US, and is a casino resort operator in the Bahamas.

Genting Malaysia is a 49.3%-owned subsidiary of Genting Berhad.

RAM said in a statement: “Genting Malaysia’s credit profile is supported by its position as the only casino operator in Malaysia via Resorts World Genting (RWG).

“RWG contributes a respective 70% and 80%-90% of Genting Malaysia’s yearly revenue and operating profit before depreciation, interest and tax (OPBDIT) and is key to the group’s strong, stable cashflow,” it said.

It noted the group possesses a strong cashflow-generating ability, robust balance sheet and ample liquidity.

For the past 5 years, the group has recorded an average operating cashflows and free operating cashflows of RM1.85 billion and RM1.25 billion, respectively.