June 7th - Stocks To Watch IHH, MAHB, Axiata, Prestariang, HeiTech Padu

Stocks To Watch IHH, MAHB, Axiata, Prestariang, HeiTech Padu
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 06 June 2013 18:59


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KUALA LUMPUR (June 6): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (June 7) may include the following companies :

IHH Healthcare Bhd and Malaysia Airports Holdings Bhd (MAHB), both of which, have operations in Turkey may attract market interest amid anti-government protest there.

IHH owns 60% in Acibadem Hospitals Group which runs 15 hospitals of which 14 are in Turkey. The remaining entity is in Macedonia.

MAHB, meanwhile, has a 20% stake in Turkey's Istanbul Sabiha Gokcen International Airport (ISGIA).

Analysts said IHH's growth plans could be disrupted by political uncertainty in Turkey.

In a note today, Hong Leong Investment Bank said the research firm is mindful of the impact on Acibadem's operations.

"Furthermore, prolonged riot may further delay the CONSTRUCTION [] projects and subsequently impact IHH’s growth plan," said Hong Leong which maintained its "hold" call for IHH shares with an unchanged target price (TP)of RM3.53.

On ISGIA, Hong Leong said the airport is still making losses on high interest and amortisation expenses.

"MAHB has stopped recognising contribution from the associate as the accumulated loss was higher than MAHB’s capital investment into the airport,” said Hong Leong which maintain its "buy" call for MAHB with an unchanged TP of RM6.80.

Axiata Group Bhd may be closely watched on the mobile communication network provider's local unit Celcom Axiata Bhd's plan to upgrade and expand the group’s network across Malaysia.

Celcom Axiata chief executive officer Datuk Seri Shazalli Ramly said today that the firm has earmarked more than RM400 million to undertake the task over the next 18 months

The Employees Provident Fund (EPF) has become a major shareholder in Prestariang Bhd with a 5.21% stake.

Prestariang said the EPF had last Monday (June 3) bought 477,300 shares in the information and communication TECHNOLOGY [] education provider.

Following the purchase, the EPF owns 11.41 million shares in Prestariang.

HEITECH PADU BHD [] has secured an RM18.95 million job to maintain and service computer systems at Malaysia's Immigration Department.

The two-year contract begins from July 1, 2013, till June 30, 2015.