June 3rd - Stocks To Watch Sime Darby, Scope, Masteel, Litrak, Petron, MNRB, Guan Chong, BLD Plant, TH Plant

Stocks To Watch Sime Darby, Scope, Masteel, Litrak, Petron, MNRB, Guan Chong, BLD Plant, TH Plant
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 31 May 2013 20:47


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KUALA LUMPUR (May 31): Based on corporate announcements, the stocks that may attract investor interest on Monday (June 3) include Sime Darby, Scope, Masteel, Litrak, Petron, MNRB, Guan Chong, BLD Plant and TH Plant.


SIME DARBY BHD []’s third quarter net profit fell by 21% year-on-year to RM691.25 million due to lower pre-tax profit contribution from its PLANTATION [], industrial and energy and utilities divisions.

The fall in profit was accentuated by its plantation division, which holds the largest slice in Sime Darby’s profit contribution, as it fell by 26.56% year-on-year.

However, its motors, property and healthcare divisions registered growths to help offset other profit declines.

Consequently, earnings per share for the third quarter fell to 11.5 sen from 14.58 sen a year ago.

The diversified conglomerate announced its net profit for the third quarter ended March 31, 2013 at RM691.25 million on the back of a revenue of RM10.84 billion.

For its nine months to March 2013, the conglomerate’s net profit also fell 21.67% to RM2.39 billion from previous corresponding period’s RM3.05 billion.

Sime Darby told a press conference it will be able to achieve its net profit target of RM3.2 billion for the full financial year ending June 2013.


SCOPE INDUSTRIES BHD [] may see its share price coming under pressure after shareholders of Matang Holdings Bhd voted against a deal to inject Matang’s cash and plantations into Scope, which could invigorate the latter.

The company’s chairman, Datuk Tan Chai Ho, declared to reporters the deal between Matang and Scope was off on Friday, “since shareholders do not agree to the merger of Matang and Scope in this EGM.”

The share price of loss-making Scope had climbed previously because of this proposed deal. Its share price was hit on Friday, falling by 4 sen or 13% to close at 26 sen per share.


Malaysia Steel Works (KL) Bhd (Masteel) said its proposed inter-city rail transit network project in Iskandar Malaysia is on track.

Masteel’s 60% joint venture company Metropolitan Commuter Network Sdn Bhd has received a letter from Ministry of Transport to confirm its agreement to the rail project in Iskandar Malaysia.

The steel manufacturer had, in 2011, entered into a joint venture with KUB MALAYSIA BHD [] to jointly build and operate the 100 km inter-city rail system from Iskandar to Singapore to ease traffic congestion in Johor.

Meanwhile, Masteel said it recorded a net profit of RM3.55 million in the first quarter ended 31 March 2013, registering a rebound from RM4.88 million loss in the corresponding period a year ago.

“We successfully recorded net profit due to lower production costs resulting from our efficient operations,” the company said.

The company expects to record satisfactory performance in the current year due to implementation of many economic transformation programs.


LINGKARAN TRANS KOTA HOLDINGS [] Bhd (Litrak), the concessionaire of Lebuhraya Damansara-Puchong (LDP) highway, raked in RM33.86 million in net profit for its final quarter ended March 31, 2013.

In the previous corresponding period, the company suffered a net loss of RM18.92 million.

For the full year (FY2013) Litrak gained RM130.8 million in net profit or 25.69 sen per share on revenue of RM369.3 million.

The net profit was 57.25% greater than the previous financial year’s RM83.18 million or 16.47 sen per share. FY12’s revenue stood at RM358.73 million.

Litrak explained the rise in net profit was due to higher amortisation of highway development expenditure recognised by its subsidiary Lingkaran Trans Kota Sdn Bhd in FY12 based on the latest toll revenue projections prepared by independent consultants.

“As the projections were concluded at the end of 4QFY12, the entire adjustment was accounted for in that quarter in the financial statements of that subsidiary and the group,” Litrak elaborated.


Petron Malaysia Refining & Marketing Bhd's net profit fell 63% to RM30.76 million from RM82.5 million a year earlier.

The downstream oil and gas firm told the exchange that revenue, however, rose 5% to RM2.89 billion from RM2.75 billon. Net profit had fallen on higher cost of sales and finance expenses.

The firm said stronger sales had supported revenue growth but reduced product prices had contributed to its net profit decline.

Looking ahead, the petrol kiosk operator said the on-going upgrade of its 88,000 barrel per day refinery in Port Dickson will enable the company to produce fuel, which meets more stringent global standards.


MNRB HOLDINGS BHD []’s net profit for the fourth quarter ended March 31, 2013 more than halved to RM17.15 million from the previous corresponding period’s RM36.52 million.

The insurance and takaful group reported its revenue for the quarter at RM549.68 million, up 25.5% from the previous year’s RM437.98 million.

MNRB’s full-year (FY13) net profit amounted to RM114.25 million. This was 31.04% higher than the previous financial year’s net profit of RM87.19 million.

Its cumulative revenue was RM2.29 billion, up 13.58% from FY12’s RM2.02 billion.


GUAN CHONG BHD [] has posted a 47.2% dip in group net profit to RM16.5 million for the first quarter ended 31 March 2013, mainly due to continued weak consumer sentiments in traditional chocolate-consuming markets, such as the Eurozone.

The prolonged economic uncertainty in Europe has resulted in excess capacity amongst cocoa grinders in the continent, which further eroded profit margins of cocoa processing, said the company.


BLD Plantations Bhd said its net profit for the first quarter ended March 31, 2013, slumped 99.8% to RM1.55 million from RM14.68 million a year earlier, due mainly to lower average price of oil palm products.

The company said its revenue for the quarter fell 25% to RM369.92 million from RM494 million.

Earnings per share fell to 1.83 sen from 17.27 sen in 2012.

On its prospects, the company said it faces the challenges of lower palm oil prices and higher costs.


TH PLANTATIONS BHD [] said its net profit for first quarter to end-March 2013 plunged 75.4 % year-on-year to RM3.21 million.

Similarly, its earnings per share fell sharply to 0.44 sen, from 2.53 sen in the first quarter of 2012.

Revenue fell to RM89.45 million, from RM95.05 million.

Explaining its results in its filing to Bursa Malaysia, TH said lower revenue was due to lower prices of crude palm oil and related products.

Apart from being hit by lower palm oil prices, TH’s profit was also affected by higher production cost, higher administration cost, higher operating cost and higher finance cost linked to issue of a Sukuk, the company said.