April 15th - Stocks To Watch Bina Puri , Hock Seng Lee, Kamdar, Mulpha, Stemlife, rubber glove manufacturers

Stocks To Watch Bina Puri , Hock Seng Lee, Kamdar, Mulpha, Stemlife, rubber glove manufacturers
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 12 April 2013 18:54


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KUALA LUMPUR (April 12): Based on exchange filings and news flow today, stocks to watch this Monday(April 15) may include the following companies:

BINA PURI HOLDINGS BHD [] is planning a private placement of up to 44.11 million new shares with 88.22 million free warrants in the builder to independent third-party investors.

The company has not fixed the issue price for the placement shares, the proceeds of which, will finance the working capital requirements of the firm. The proceeds will also be used to repay its bank loans.

Sarawak-based builder HOCK SENG LEE BHD [] (HSL) has secured two projects with a collective value of RM81 million from local authorities there.

HSL said the contracts from Lembaga Kemajuan Bintulu comprise a RM64.5 million road project and RM16.5 million drainage-diversion job within the Bintulu enclave.

Kamdar Group (M) Bhd’s two major shareholders who had earlier planned to remove three existing board members in the firm, have withdrawn the extraordinary general meeting (EGM) called earlier to seek shareholders' consent for the proposal.

The textile manufacturer and retailer did not give any reason for the changes.

Bipinchandra Balvantrai who holds a 28.91% stake in Kamdar, and son Gautam Kamdar Bipinchandra who has 3.98%, had previously called for the EGM to remove Kamal Kumar Kishorchandra Kamdar, Rajesh Kumar Gejinder Nath, and Liang Ah Wah.

MULPHA INTERNATIONAL BHD [] jumped as much as 8% today on perceived undervaluation of shares in the property developer and investor, analysts said.

At 5pm, Mulpha settled at 41 sen with some 45 million shares done. The third most-active stock on the exchange had earlier risen as much as three sen to 42.5 sen. The stock’s closing price is a 64% discount to its latest reported book value per share of RM1.13.

HwangDBS Vickers Research Sdn Bhd analyst Goh Yin Foo said in a note that Mulpha is "a laggard Iskandar Malaysia (IM) property play" as the book value of Mulpha’s landbank in Johor is not reflective of rising prices for tracts within the state’s IM enclave.

STEMLIFE BHD [] plans to pay a single-tier final dividend of one sen a share for financial year ended December 31, 2012 (FY12).

The dividend requires the consent of Stemlife shareholders at the company's coming AGM. Including the latest payout, the firm's full year FY12 dividends will come to two sen a share.

The full-year dividends translate into a yield of 8% based on the stock's latest closing price of 24.5 sen yesterday (April 11). Stemline shares were not traded today.

Investors may continue to monitor shares of rubber glove manufacturers as they eye updates on the bird flu outbreak in China. The spread of the disease is expected to spur demand for the product.

Reuters reported that at least 33 people have been infected and 10 have died from the strain of bird flu known as avian influenza A (H7N9) first found in humans last month. So far, the strain does not appear capable of being passed from person to person.

But Chinese researchers, in a report published online on Thursday in the New England Journal of Medicine, warned that the sudden emergence of this strain of flu "may pose a serious human health risk" and said "appropriate counter measures were urgently required."

Meanwhile, Bernama reported that the Ugandan government is closely monitoring the spread of avian influenza and its strains, which have put countries in Asia and the Middle East on high alert.