April 29th -Stocks To Watch Crest Builder, Three-A, Malaysia Airports, Zecon, EPMB, Cepco and TH Heavy

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 26 April 2013 20:46
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KUALA LUMPUR (April 26): Based on corporate announcements today,
the stocks that may lure investor interest on Monday (April 29) include
Crest Builder, Three-A, Malaysia Airports, Zecon, EPMB, Cepco and
TH Heavy.
CREST BUILDER HOLDINGS BHD [] (CBHB) said it has signed a joint
land development agreement with Syarikat Prasarana Negara Bhd for a
mixed development project with GDV of RM1 billion located at the Dang
Wangi LRT Station in Kuala Lumpur.
Prasarana has appointed CBHB to undertake the CONSTRUCTION [] of
the development with a total area of 1.06 million square feet. The
rail-plus-property project involves 50 MRT/LRT station sites to be
developed.
“The proposed development will generate a gross development value
(GDV) of RM1.04 billion, featuring a retail podium, SOFO, office suites
and luxury service apartments,” the company said.
The proposed development is expected to start physical works by the
second half of FY2013 with a targeted completion date by year 2018,
the company said.
THREE-A RESOURCES BHD [] announced that its net profit for the
first quarter ended March 31, 2013, fell 30.6% year-on-year to RM2.73
million. But its first quarter revenue increased to RM73.8 million, from
RM71.4 million
In its explanatory notes, the company said the 3.3% rise in revenue was due to increase in demand for its products.
But its profit fell due to higher raw material costs and higher share of losses from a jointly-controlled firm.
Malaysia Airports Holdings Bhd (MAHB) announced at noon today it posted a 22.7% increase in its first quarter net profit
and a jump of 56% in revenue.
The company said its first quarter net profit at end-March 2013 was RM126.06 million, up from RM102.73 million in similar
quarter in 2011. Its first quarter revenue jumped 56% to RM1.027 billion, up from RM657.7 million.
In its explanatory notes, MAHB said under its airport operations, there was construction revenue of RM454.6 million, as
compared to the amount recognised in the same period in previous year of RM146.6 million.
The construction revenue was recognised in relation to the construction of klia2 and expansion of Penang International Airport,
it said.
But excluding the construction revenue, the airport operations’ revenue in the current quarter only increased by 12% or
RM58.6 million, it explained.
The share price of MAHB rose11 sen to end at RM6.00 today, after the announcement was made at noon.
ZECON BHD [] has clinched a RM495 million job to build the Petra Jaya Hospital in Kuching, Sarawak.
Zecon said it has received the letter of award for the 42-month project from Public Works Department.
"The said project is not expected to have any material impact on the earnings, net assets, share capital and substantial
shareholders’ shareholdings of Zecon for the financial year ending 30 June 2013.
"However, it is expected to contribute positively to the company’s consolidated net assets and earnings in the subsequent
financial years," Zecon said.
EP MANUFACTURING BHD [] (EPMB) said its net profit fell to RM5.61 million for the first quarter ended March 31, 2013,
from RM8.74 million in the same period last year.
Revenue was also lower at RM110.40 million, down from RM137.70 million.
EP Manufacturing, the components vendor for Proton and Perodua, said the decline in revenue was due to the transition of
models of the two national carmakers.
Executive chairman Hamidon Abdullah said there had also been “cost-down initiatives” by Proton and Perodua for vendors to
reduce wastage and improve efficiency.
On outlook, Hamidon said the group “remains positive” of the automotive industry this year, given a projected GDP growth of
5.4% and sale of 640,000 vehicles for this year.
CONCRETE ENGINEERING PRODUCTS [] Bhd (Cepco) said its net profit rose sharply to RM8.25 million in the second
quarter ended Feb 28, 2013, up from RM1.88 million in the same quarter a year ago.
Revenue also increased to RM41.46 million from RM32.78 million previously.
Cepco said the company's current year prospects are backed by its current order book and potential orders from new
projects in Malaysia and regionally, but cost of building materials will also have an impact.
TH Heavy Engineering Bhd (TH Heavy) said its net profit slid 22.7% to RM6.02 million in the first quarter ended March 31,
2013, from RM7.79 million in the same period a year ago.
However, revenue increased to RM56.08 million from the RM40.71 million previously.
On outlook, TH Heavy said new prospective works are expected to add positively to revenue and the groups' profit in the
current financial year.
"With the current work and new prospective projects to be secured, the group is confident of delivering an overall positive
result," it added.
TH Heavy is principally engaged in the business of onshore fabrication for the offshore structure, construction and hook-up
and commissioning for major oil/gas industries