LBS to unveil new strategy, MISC faces challenging year

LBS to unveil new strategy, MISC faces challenging year
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 19 August 2013 10:19

KUALA LUMPUR: Stocks that may move today include LBS BINA GROUP BHD [], MISC BHD [], PHARMANIAGA BHD [], Flonic Hi-tech Bhd, AMMB Holdings Bdd and ENCORP BHD [].

LBS, which has just completed the sale of some of its China assets, said it will announce its next strategic move at a press conference tomorrow.

Several days ago, the property developer announced it had officially completed the sale of its China assets valued at HK$1.65 billion (RM697 million).

At market close last Friday, LBS rose four sen to RM1.92 on while its warrant soared 10 sen to RM1.11.

MISC reported that its net profit for second quarter (2Q) ended June 30 fell 20.8% to RM300.9 million from RM380.1 million in the previous corresponding period.

This was achieved on the back of a lower revenue of RM2.28 billion compared with RM2.36 billion previously.

Looking ahead, MISC said 2013 is another "challenging year" for the shipping industry due to soft demand growth, volatile fuel prices and excess shipping capacity. But long-term contracts in liquid natural gas and offshore business will provide stability to the group.

Flonic was slapped with a UMA (unusual market activity) query by Bursa Malaysia after an incessant surge in its share price and trades lately.

The stock began to rise from eight sen in early July. At last Friday's level its share price has risen more than 150% over the past 1½ months.

Pharmaniaga's profit for 2Q ended June 30 fell 62.4% to RM5.87 million from RM15.71 million a year earlier, due mainly to a slowdown in orders from the concession business, recognition of doubtful debts and increased provision for obsolete stocks.

Its revenue for the quarter fell to RM437.63 million from RM456.74 million a year earlier. Earnings per share was 2.27 sen while net assets per share was RM1.86.

AMMB reported a 6% rise in 1Q ended June 30 net profit from a year earlier as interest and Islamic banking income rose.

It said net profit rose to RM467.86 million in the quarter under review from RM442.88 million while revenue climbed to RM1.99 billion from RM1.81 billion.

Encorp announced a turnaround in its 2Q results, saying it posted a net profit RM11.5 million for 2Q ended June 30, compared to a net loss of RM3.5 million in the previous corresponding period.

For the six months to June 2013, it posted net profit of RM6.4 million, compared to a loss of RM5 million previously. Revenue rose to RM233.7 million, from RM143.3 million.

The company said it expects to achieve "satisfactory performance" for the current financial year.



This article first appeared in The Edge Financial Daily, on August 19, 2013.