Feb 17th - Stocks To Watch Sarawak planters, Minetech, Ornapapers, AirAsia, LBS, PDZ, GHL, Puncak Niaga

by **Cals** Mon 17 Feb 2014, 07:50

Stocks To Watch Sarawak planters, Minetech, Ornapapers, AirAsia, LBS, PDZ, GHL, Puncak Niaga

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 14 February 2014 20:14

KUALA LUMPUR (Feb 14): Based on news flow and corporate announcements up to 7.30 pm today, the following companies may attract some interest on Monday (Feb 17):

Sawarak plantation companies selling crude palm oil to (CPO) Singapore’s listed corporation Wilmar International Ltd may come under pressure as Wilmar has told the Sarawak state government that it has decided to stop buying CPO from the state from 2015.

According to Bernama, Sarawak may lose RM400 million in sales tax revenue from oil palm products annually following the decision by Wilmar not to buy crude palm oil (CPO) from mills in the state.

With a refinery in Bintulu, Wilmar International is 18% owned by PPB Group Bhd of Malaysia.

Wilmar has written to inform the state government that it would stop buying CPO produced from oil palm trees planted in forest areas and peat swamp land in the state from 2015 onwards, according to Bernama.

State Land Development Minister Tan Sri Dr James Masing said the state government would not bow to such pressure from the company.

"If there is a stop in the planting of oil palm in forest areas and peat swamp, it would definitely affect the state's revenue and also the 17,578 smallholders in the state as well as some 300,000 people in rural areas," he said.

Wilmar buys 45 per cent of the CPO produced by 41 mills in the state.

According to Masing, “This directive from Wilmar has a very disastrous effect on us… I believe the company has been pressured by non-governmental organisations in Europe to make such restriction on the state oil palm products. They use environment impact argument but it is actually an economic argument.”

At market close, Sarawak Plantations Bhd fell 9 sen or 3.4% to RM2.56 on trades of 28,000 shares. Sarawak Oil Palm Bhd fell 7 sen or 1.1% to RM6.18. It is unclear if their falls are related to the Bernama report.

Minetech Resources Bhd has signed a memorandum of understanding (MOU) with China's Sany group and Malaysia's Top-Mech Provincial Sdn Bhd to jointly explore business opportunities.

Quarry operator Mintech said the MOU precedes a planned definitive agreement to form "win-win" partnerships and joint pursuit of projects.

According to Minetech's statement, Sany is a heavy equipment and machinery manufacturer. Top-Mech, which is involved in the crane business, is also a dealer for certain Sany products.

Ornapaper Bhd said it was "not aware" of any corporate development which might have led to the rise in its share price. This includes rumours that the company is a takeover target.

Share price of the paper-based packaging products manufacturer, which had shot up from just 82 sen early this month, fell 6 sen to RM1.29 at market close.

AirAsia Bhd has decided on partners and top executives for a new discount airline in Japan after ending its tie-up with ANA Holdings Inc. last year, according to Bloomberg.

The co-investors included listed companies, said Tony Fernandes, AirAsia’s group CEO.

“We’ve gone with people we think are like-minded and bring strategic value,” said Fernandes, during a visit to Japan to meet them. “The timing is excellent for Japan with the new economic thinking.”

Japan’s economy has expanded since Prime Minister Shinzo Abe became prime minister in 2012, with the stock market jumping as the central bank pumps money into the monetary system.

AirAsia rose 9 sen or 4% to RM2.39 at market close.

LBS Bina Group Bhd said it will develop land in Iskandar Malaysia into a mixed-development with a gross development value of about RM2 billion.

The mixed-development project consists of 2,700 units of residential and commercial property, spanning an estimated period of eight years.

In a statement to Bursa Malaysia, the property developer also said it had acquired two pieces of 99-year leasehold land in Bandar Johor Bahru, Johor from the Employees Provident Fund (EPF).

LBS Bina said it had today, via its indirect wholly-owned subsidiary Sinaran Restu Sdn Bhd, entered into two sale and purchase agreements with the EPF for a total cash consideration of RM72 million.

LBS was down one sen to RM1.51 at market close.

PDZ Holdings Bhd clarified it has not put in any proposal to acquire shares of Efogen Sdn Bhd, following a news report today.

The stock rose one sen to 15.5 sen at market close. Since early January, the stock price has been climbing from 8 sen.

GHL Systems Berhad has signed an MOU with PT Peruri Digital Security to explore, collaborate, develop and promote payment related businesses in Indonesia, within one year from the date of its signing.

PT Peruri Digital Security is a 100% subsidiary of Perusahaan Umum Percetakan Uang Republik Indonesia. The Peruri Group is 100% owned by the Government of Indonesia and it is the authorised printer of the Indonesian Rupiah and other security printing services such as stamps, passports and others.

The Indonesian market with a 248 million population holds great potential for e-payments, said GHL.

Puncak Niaga Holdings Bhd said its wholly-owned subsidiary, Puncak Niaga (M) Sdn Bhd, had today won the tender by Jabatan Perkhidmatan Pembetungan, Kementerian Tenaga, Teknologi Hijau dan Air for a project package worth about RM394 million.

The project, Package D44, involves the construction of sewer pipe networks at Bunus, Kuala Lumpur.

It runs for 48 months and ends on Feb 24, 2018.

The company said the contract was expected to have positive impact on its financial year ending Dec 31, 2014.