Dec 11th -Stocks To Watch Sumatec, Destini, Mah Sing, Perisai, i-capital, Goldis, BAssets

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 10 December 2013 19:35
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KUALA LUMPUR (Dec 10): Based on corporate announcements, the stocks
that may stir tomorrow could include the following:
Sumatec Resources Bhd announced it will develop and deliver the gas
development plan for the Rakuschechnoye oil and gas (O&G) field that could
offer a fee income of RM144 million over three years starting 2014.
Speaking at a special press briefing, Sumatec’s CEO Chris Dalton said the firm
today entered into an agreement for the gas development and production of the
said O&G field, with Markmore Energy (Labuan) Limited (MELL).
MELL is the owner of the concession and sub-surface user rights for the
Rakuschechnoye O&G field through its 100% subsidiary CaspiOilGas LLP
(COG).
“Sumatec will charge MELL a fee of US$45,000,000 (RM144,000,000) over
three years from 2014 to 2017,” said Dalton.
“Once supply of gas commences to the off taker (in 2017), Sumatec will charge an operator fee of USD0.75 per thousand standard cubic
feet supplied net of cost.”
Dalton pointed out from the fee of US$45,000,000 (RM144,000,000), Sumatec would gain an estimated profit margin of 30%.
Concerning Sumatec’s bottom line, he said: “We are confident of a turnaround next year and expect to gain profit in the first quarter of next
year.”
“We are optimistic of hitting our profit target of RM69 million by next financial year end. This, however, does not take into account of the
new gas development and production agreement.”
For the nine months ended Sept 30, 2013, Sumatec incurred losses of RM15.3 million.
Destini Berhad’s wholly-owned unit, Destini Prima Sdn Bhd, has secured a three-year contract from the Ministry of Defence worth
RM46.3 million to supply defence equipment for the Royal Malaysian Air Force.
In a statement, Destini’s group managing director Datuk Rozabil Abdul Rahman said: “We have been working with Ministry of Defence for
more than 10 years now… Our integrated engineering disciplines and the expertise of our workforce which comprises former military
servicemen and engineers set us well ahead in the industry.”
Inclusive of this contract, Destini’s total order book from the Ministry of Defence stands at RM152 million, according to a media statement
by Destini.
Mah Sing Group Berhad has acquired 76.38 acres of freehold land for RM42.59 million in Penang for a new township, Southbay East in
Jawi, with a gross development value (GDV) of RM400 million.
It said the new guarded township also featured clubhouse facilities.
The development will offer a range of products appealing to the mass market including link houses, linked semi-detached homes,
semi-detached homes, town houses and shops.
The development is expected to be completed over the course of 3-4 years.
Leong said Mah Sing’s projects in Penang would yield remaining unbilled sales of RM3.8 billion, representing 13% of the company’s
RM28.78 billion GDV and unbilled sales.
Perisai Petroleum Bhd said earnings from Perisai Kamelia are expected from the fourth quarter of 2013 as the latter has completed thecontracted start-up and commissioning work.
Perisai Kamelia, the floating production, storage and offloading (FPSO) vessel, was deployed to the North Malay Basin Early Production
System under the terms of the contract awarded to Perisai Petroleum Teknologi Bhd’s 40%-owned associate, Larizz Petroleum Services
Sdn Bhd.
In a note to the exchange today, Perisai said the US$272.1 million contract came with an extension option that could add another three
years to the charter duration.
“With the successful start-up and commissioning, earnings from the Perisai Kamelia are expected from the fourth quarter of financial year
ending Dec 31, 2013,” said Perisai.
Icapital.biz Bhd announced that its second quarter to November 2013 saw a net profit of RM5.7 million, which was about three times the
profit of RM1.9 million a year ago.
Its revenue stood at RM7.7 million compared to RM3.8 million in similar quarter in previous year.
The closed end fund said its net asset per share rose to RM3.02 from RM2.99 a year ago.
Goldis Bhd’s net profit leapt 75% to RM32.1 million for its third quarter ended 31 Oct 2013, from RM18.4 million in the previous year’s
corresponding quarter.
Third quarter revenue was recorded at RM32.9 million, up 42% from RM23.1 million last year.
The group attributed the improvement in revenue and profit for the quarter mainly to “better margins achieved and better performance from
the investment in associate” under its property segment.
Looking forward, Goldis is quite optimistic in its outlook for its various segments.
Net profit for the nine months ended October 2013 increased significantly to RM111.8 million from RM 61.6 million in the previous year’s
same period. Revenue 9MFY13 also rose to RM87.4 million from RM67.2 million in 9MFY12.
Berjaya Assets Berhad announced that the company has entered into an agreement for the disposal of 150 million shares representing
20% equity interest in its subsidiary, Berjaya Times Square Sdn Bhd, to Sultan Ibrahim Ismail Ibni Almarhum Sultan Mahmud Iskandar
Al-Haj for RM250 million.
“The disposal represents an opportunity for BAssets to raise immediate cash…The gross cash proceeds of RM250 million will be utilized
by the BAssets Group for working capital and/or future investments,” it said.
The disposal will realise an exceptional gain of about RM7.02 million to BAssets at company level and an exceptional loss of RM149.15
million at BAssets Group level, which will reduce the retained earnings by the same amount.
“Based on the last audited accounts of BAssets Group as at 30 June 2013, the consolidated net assets per BAssets share will be reduced
by RM0.14 to RM1.85,” said the company.