April 10th - Stocks To Watch LBS, Supermax, Top Glove, WCT, Far East, TDM, Land & Genera

Stocks To Watch LBS, Supermax, Top Glove, WCT, Far East, TDM, Land & General
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 09 April 2013 19:34


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KUALA LUMPUR (Apr 9): Based on news flow and announcements, stocks that may lure interest on Wednesday (April 10) could include LBS, Supermax, Top Glove, WCT, Far East, TDM, Land & General.

LBS BINA GROUP BHD [] suspended trading of its shares at 4:43 pm today. An executive said the property developer’s land sale worth up to RM600 million in China will be announced tomorrow (April 10).

While filing to Bursa Malaysia stated that the request for suspension is “pending an announcement”, an LBS Bina executive said the suspension is to make way for the announcement of its land disposal in Zhuhai, China, to Hong Kong-listed Zhuhai Holdings Investment Group Ltd.

LBS Bina has taken a year to conclude the divestment, which is expected to raise the net earnings per share of the company in the current financial year.

LBS’s net asset per share stood at RM1.16 at end-2012.

The company’s share suddenly rose in late trades today, closing at RM1.14 after gaining 7 sen or 6.7%.

SUPERMAX CORPORATION BHD [] told the Edge it is anticipating a "short-term exceptional rise in profits" due to higher demand for rubber gloves amid the bird flu outbreak in China.

Its CEO Datuk Seri Stanley Thai, in an email reply to questions raised by theedgemalaysia.com, said the company has received new enquiries and additional orders from customers in China over the last few days.

The orders are mainly for powdered natural rubber latex examination gloves.

"The demand and consumption of gloves in China still remain with powdered latex examination gloves.

"That means Supermax and Top Glove Corp Bhd would be the main beneficiary of the sudden surge in demand of powdered latex examination gloves due to their larger capacity of latex examination gloves," Thai said.

Natural rubber gloves account for about 74% and 65% of Top Glove and Supermax’s product mix respectively.

World rubber glove demand is expected to spike if the H7N9 bird flu in China develops into an epidemic along the proportions of the H1N1 outbreak in 2009-2010.

WCT BHD [] today clarified that the CONSTRUCTION [] of the Batinah Expressway – Package 2, in the Sultanate of Oman, never actually commenced.

The construction company’s share suffered a blow today after yesterday’s announcement that it had lost the RM1 billion highway job in Oman. The share closed down 8 sen at RM2.37.

In its filing today, WCT said since receiving the award on Aug 15 last year, formalisation of the contract had never been completed.

“The company was subsequently informed via letter dated 6 April 2013 that the employer would not be proceeding with the project pursuant to this tender and that this tender had been cancelled,” it said.

WCT also said it will continue to pursue jobs and business opportunities in the Sultanate of Oman.

FAR EAST HOLDINGS BHD [] plans to pay a final single-tier dividend of 17.5 sen a share for financial year ended December 31, 2012.

The proposed pay-out requires Far East shareholders' approval at the firm's upcoming AGM.

Including the proposed dividend, the company's full-year payout will come to 17.58 sen. (17.5 sen + 0.33 sen).

TDM BHD [] has proposed to reward shareholders with a tax-free, first and final dividend of 22 sen a share for financial year ended December 31, 2012.

The company, in a separate announcement, has also come out with multiple proposals which include:

1) Bonus issue of 49,388,722 new TDM shares on the basis of one bonus share for every five existing TDM shares held.

2) A share split involving the subdivision of each TDM Share into five (5) ordinary shares of RM0.20 each in TDM.

The proposed bonus Issue and share split are expected to cause a proportionate reduction in the earnings per share as a result of the increase in the number of TDM shares, assuming its earnings remain unchanged.

Land & General Bhd has proposed renounceable rights issue of RM77,779,589 nominal value of five-year, 1%, irredeemable convertible unsecured loan stocks (ICULS) at 100% of the nominal value of RM0.13 each on the basis of RM0.13 nominal value of the ICULS for every one existing ordinary share of RM0.20 each in L&G held.

In addition, it also proposed the acquisition of one (1) block of 13-storey stratified office floors in Putrajaya, for RM72.485 million.

The proposals are expected to be completed by the second quarter of 2014. The proceeds from the cash calls will be used mainly for the property purchase.

The board of Land & General expects the proposals to contribute positively to the future earnings of the group.

The proposed acquisition will provide the opportunity to the group to expand its property asset base and geographical reach, it said.