Stocks to watch: IRCB may attract attention this week

by **Cals** Mon 30 Dec 2013, 11:57

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 30 December 2013 09:56

KUALA LUMPUR: Based on news flow and corporate announcements last Friday, Integrated Rubber Corp Bhd (IRCB), which has staged a strong turnaround in performance, may lead others in attracting interest today.

IRCB posted a net profit of RM27.6 million in its third quarter ended Oct 31 of financial year 2014 (3QFY14). This was a reversal from its net loss of RM9.9 million in the corresponding period last year and a loss before tax of RM28 million in 2QFY14.

As a result, earnings per share stood at 4.66 sen for 3QFY14. Revenue for the quarter was RM35.2 million, compared with RM33.6 million a year ago.

But for the nine months to Oct 31 (9MFY14), the rubber glove company still registered a loss. The losses totalled RM10.5 million, compared with a loss of RM18 million in 9MFY13.

The PN17-status company, which recently completed its financial regulation plan, said its improved performance was due mainly to higher contribution margin from nitrile gloves after a change in product mix, and some currency gains.

Hwang-DBS (Malaysia) Bhd’s net profit jumped 47% to RM13.5 million for its 1Q ended Oct 31, 2013 from RM9.2 million in the previous corresponding quarter.

The group reported revenue of RM132.6 million for the quarter, up 17% from RM113.4 million in the previous corresponding period.

“The increase in operating revenue is mainly attributable to the higher fund management fee income generated by the investment management segment and increase in gains arising from securities trading activities,” said the group.

Its stockbroking, investment management and commercial banking segments recorded improved pre-tax profit for the quarter, but was partly offset by lower profit from the investment banking and moneylending segments.

The group believes that it will “perform satisfactorily” for the remainder of its financial year.

United U-Li Corp Bhd announced that its wholly-owned unit, United U-Li Goodlite Sdn Bhd, has entered into a distributorship agreement with OPPLE Lighting Co Ltd of China to sell and distribute its lighting products in Malaysia and Brunei from Jan 1, 2014.

United U-Li told Bursa Malaysia that OPPLE, a Shanghai-based corporation, is the “No 1 consumer lighting brand in China” with a “sales turnover of several hundred million US dollars” and 7,000 employees worldwide.

Ekovest Bhd, a construction firm with a growing presence as a toll concessionaire, said it aims to acquire more land in Greater Kuala Lumpur and Iskandar Malaysia in Johor.

Managing director Lim Keng Cheng said the company’s appetite is focused on the two locations due to their potential for infrastructure developments such as the mass rapid transit, which would help to lift property prices.

Currently, Ekovest has planned projects with a gross development value of RM4 billion in Kuala Lumpur, on top of its newly launched RM1.63 billion EkoCheras mixed-use development project.

Ekovest, also the concession holder of the Duta-Ulu Kelang Expressway (DUKE), said it is awaiting the government’s response regarding the DUKE 3 project.

Lim said: “We’ve actually submitted many proposals and there are many alternatives, not just DUKE 3.”

Ekovest was recently awarded a RM1.18 billion contract from the government to expand the existing DUKE highway. Lim said although DUKE is currently losing money, it is expected to break even in 2017.

Felda Global Ventures Holdings Bhd (FGV) is looking for more asset acquisitions to improve its profitability, said group president and chief executive officer Mohd Emir Mavani Abdullah, according to Bernama.

Speaking to the media after FGV’s extraordinary general meeting (EGM) last Friday, he said the group will acquire assets to enhance its downstream and upstream activities.

At the EGM, FGV obtained shareholders’ approval to acquire 51% equity interest in Felda Holdings Bhd (FHB) from Koperasi Permodalan Malaysia Bhd for RM2.2 billion or RM19.61 per FHB share.

FGV expects 8% revenue growth annually in the next eight years beginning 2014 with the integration of FHB under its stable of companies.

Hibiscus Petroleum Bhd announced that Bank Negara Malaysia has approved its issuance of CRPS-2013 for an amount of up to RM500 million to non-resident investors.

The approval granted is deemed to have lapsed if Hibiscus uses the proceeds raised from the proposed private placement for purposes other than for investment(s) in the oil and gas sector within and outside Malaysia.

This article first appeared in The Edge Financial Daily, on December 30, 2013.