May 8th- Stocks To Watch Blue chips, GLCs, political stocks, F&N, Media Prima, Hartalega, TM, Datasonic and ECS.

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 07 May 2013 19:59
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KUALA LUMPUR (May 7): Based on news flow and announcements
today, stocks that may attract interest tomorrow (May 8) include blue
chips, government- and politically-linked stocks, F&N, Media Prima,
Hartalega, TM, Datasonic and ECS.
Blue chips, GLCs and politically linked stocks. As the market has
staged strong rallies for these two days following the election victory of
incumbent Barisan Nasional (BN), it is possible that counters that had
soared, in particular blue chips and government/politically-linked stocks,
may face some profit taking or continue with their climb.
The stock market saw inflow of about RM2.4 billion of funds over these
two days, Reuters reported.
However, it is not sure whether the market will react negatively to news
of a major political rally tomorrow (May 8) night, organised by opposition leader Datuk Seri Anwar Ibrahim, to protest against
the outcome of the elections.
Anwar told reporters today opposition alliance Pakatan Rakyat (PR) would not back down from its insistence that victory was
stolen from it last Sunday.
"In the next few weeks, we will present to the public proof that (Prime Minister Najib Razak) won this election through fraud
and irregularities," he said.
Fraser & Neave Holdings Bhd (F&N) reported a 49% drop in second quarter net profit from a year earlier in the absence of
deferred tax assets.
But the firm plans to pay an interim single-tier dividend of 20 sen a share.
F&N said net profit came to RM54.61 million in the quarter ended March 31, 2013 (2QFY13) against RM107.06 million
previously. Its bottom line a year earlier was helped by tax assets amounting to RM49.36 million.
During 2QFY13, revenue rose 21% to RM882.06 million from RM730.43 million.
"Group operating profit rose 18% to RM67 million compared with that of last year. The increase was mainly contributed by
Dairies Thailand as profit had returned to its pre-flood level," F&N said.
Cumulative first-half net profit fell to RM111.73 million from RM148.8 million a year earlier, while revenue rose to RM1.76
billion from RM1.47 billion.
Looking ahead, F&N said its full-year results are expected to be satisfactory amid greater competition.
MEDIA PRIMA BHD []’s reported net earnings for the first quarter ended March 31, 2013 (1QFY13) stood at RM27.11
million – a 30.5% higher year-on-year.
Media Prima’s revenue in the quarter was 9.1% higher at RM365.84 million, against RM335.38 million from the previous
corresponding period.
The company attributed higher profit and revenue to the non-traditional advertisers’ spending.
However, it added the advertising expenditure (adex) recovery has yet to reach the level seen in the first quarter of 2011.
Moving forward, Media Prima said it is committed to maintaining its leadership position in the media industry and earnings
growth. It will do so by continuing its investment in “quality and relevant” content.
HARTALEGA HOLDINGS BHD [], the world’s largest synthetic rubber glove manufacturer, posted a 25% rise in profit after
tax (PAT) to RM62.42 million in the fourth quarter ended March 31, 2013 (4QFY13) from RM50.06 million a year earlier.
Hartalega said revenue rose 12.3% to RM269.77 million.
"These results are due to our meticulous strategy and planning. We are committed to improving our efficiencies with a view to
expanding capacity, and we are confident that we will continue to do this in the new financial year,” Hartalega managing
director Kuan Mun Leong said
For the full year, PAT rose 17% to RM235.05 million from RM201.43 million a year earlier while revenue climbed 11% to
RM1.03 billion from RM931.06 million.
Looking ahead, Kuan said the group is well prepared to meet growing demand in the global glove market, with its plant 6 on
track to come fully on stream in July 2013.
The group plans to pay a third interim dividend of 3.5 sen per share for 4QFY13.
Telecom Malaysia Bhd (TM) said it targets to maintain its positive performance this year, expected to be boosted by
Internet data and multimedia segments.
Its group chief executive officer Datuk Seri Zamzamraini Mohd Isa told reporters after TM’s AGM today that despite
competition, TM would be able to maintain its leadership position as the fixed broadband provider in the country.
Zamzamraini said TM's revenue is expected to increase by 6% this year from RM10 billion achieved last year.
The company has allocated up to 24% of last year's revenue as capital expenditure for 2013, he added.
Commenting on the general election results, he said the outcome is "good news" for TM.
Datasonic Group Bhd has secured an RM18.7 million project to offer identification-TECHNOLOGY [] solutions to Malaysia’s
National Registration Department.
The company said it has received the letter of award (LOA) from the Home Ministry to provide hardware and software to
facilitate printing of the country’s identity card which is known as “MyKad”. The one-year contract starts from May 1, 2013 till
April 30, 2014.
The LOA is expected to contribute positively to the future earnings and cash flow of the company, Datasonic said.
ECS ICT Bhd posted a net profit of RM6.4 million for the first quarter of 2013 ended March (1Q13), lower compared RM8.1
million earned in the same quarter last year.
Basic earnings per share stood at 3.5 sen, compared to 4.5 sen.
But it recorded a 4.9% increase in revenue to RM320.3 million for its first quarter, versus RM305.4 million previously.
ECS attributed the topline growth to higher revenue contributions from all three business segments – ICT Distribution,
Enterprise Systems and ICT Services.
It said it is “optimistic” on its growth prospects.