April 16th - Stocks To Watch Time dotcom, icapital, AirAsia, MAHB, PLB, Bina Puri, Kossan, CIMB, Kim Hin

by **Cals** Wed 16 Apr 2014, 00:35

Stocks To Watch Time dotcom, icapital, AirAsia, MAHB, PLB, Bina Puri, Kossan, CIMB, Kim Hin

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 15 April 2014 19:50

KUALA LUMPUR (April 15): Based on news flow and corporate announcements today, the companies that may be in focus tomorrow include the following:

TIME dotCom Bhd announced today its participation in a consortium to build a new submarine cable system that will link Asia and Europe via the Middle East, further enhancing its global footprint.

“Together with 16 international service providers, TIME will construct and maintain the Asia-Africa-Europe-1 (AAE-1) submarine cable system, a high-capacity cable system linking Asia and Europe via the Middle East,” it said in a statement.

Construction of the cable system is expected to start in the second quarter of 2014 and TIME’s investment will see the group secure 1.88Tbps of capacity in AAE-1 upon its targeted completion in 2016.

With a length of 25,000 kilometres, the cable system connects Hong Kong, Vietnam, Cambodia, Malaysia, Thailand, Myanmar, India, Pakistan, Oman, UAE, Qatar, Yemen, Djibouti, Saudi Arabia, Egypt, Greece and France.

“Our investment in AAE-1 is strategic for a number of reasons,” added Afzal. But he did not state the value of TIME’s investment.

icapital.biz Bhd said it posted a net profit of RM20.18 million for third quarter to end-February 2014, up by nearly three folds from RM5.24 million a year ago.

For the cumulative three quarters to end-February, total profit stood at RM27.04 million compared to RM9.69 million in similar period the previous year.

The closed-end fund said its net assets value (NAV) per share was RM2.98 as at end-February 2014, lower than RM2.99 at end-February 2013.

AirAsia Bhd made an about-turn and said today it has made all necessary preparations to move into Kuala Lumpur International Airport 2 (klia2) by May 9, 2014.

“Although there are still a few outstanding commercial issues, this should not hold back our operations at klia2 as planned,” said the low cost carrier in a statement.

AirAsia noted that the government had brought in the International Civil Aviation Organization (ICAO) to evaluate the new terminal with regard to the long-term safety of the new airport.

The stance taken by AirAsia today is a 180-degree turn from the previous one. On April 1, 2014, AirAsia’s CEO Aireen Omar said that the airline would remain at the current low-cost carrier terminal (LCCT) even after May 9, given the many unresolved issues.

With this, the tension between AirAsia and airports operator Malaysia Airports Holdings Bhd (MAHB) is eased.

PLB Engineering Bhd through its subsidiary, PLB Land Sdn Bhd, has agreed to rehabilitate and revive phase 2A of the Majestic Heights project in Penang.

Jagdeep Singh Deo, Penang State EXCO for Housing, Town and Country Planning, said the state government of Penang had been negotiating with the company, which had purchased the land where the abandoned project stood.

“The white knight (PLB) has agreed to undertake the rehabilitation and revival of the said abandoned project and have committed to completing the same within 18 months of commencement of works,” said Jagdeep.

Besides the Majestic Heights project, PLB will also embark on an affordable housing project in the adjoining land purchased by the group. The project is expected to be completed within six years from the commencement of the project.

“Having regard to their undertaking the rehabilitation and revival works for the abandoned phase 2A, the state government will consider giving them incentives in relation to the affordable housing project,”said Jagdeep.

Bina Puri Holdings Bhd said its wholly owned unit Bina Puri Construction Sdn. Bhd has bagged a construction job worth RM247.84 million in Sarawak.

It said its subsidiary has entered into an agreement with Blessed Builders Sdn. Bhd. and Pangkalan Ikan Central Sdn. Bhd. (PIC) to build the Fishery Complex in Kuching at contract value of RM247.84 million.

The commencement date will take effect after the financial close between PIC and their financier has been determined, the company said. The duration of the project shall be 36 months.

“With this latest award, the group’s unbuilt book order stands at RM1.93 billion as at to date.

Kossan Rubber Industries Bhd stated today the effect of the current water rationing in Selangor on the company is “subdued”.

In an exclusive interview with theedgemalaysia.com, Edward Yip, General Manager of Corporate Affairs and Business Development of Kossan, said the company has technologies to recycle water.

“The effect of the water cuts on Kossan would be subdued. This issue is not something which is new. We’ve been investing in technologies to recycle water.”

He added that the company uses membrane filtration systems that help the company save up to 60% of water.

“The membranes filters are used to filter out microorganisms to help us produce industrial grade water.”

According to Bloomberg, a prolonged water supply rationing in Selangor state will raise costs and disrupt production of Top Glove Corporation Bhd and Supermax Corporation Bhd.

CIMB Group Holdings Bhd said it is expanding outside Malaysia to diversify its revenue and profit contribution.

It expects Malaysia's profit contribution to fall to 50% within the next three to four years. Currently, Malaysia's contribution to group profit stands at 60%.

Speaking to reporters after the group's annual general meeting today, CIMB's CEO Datuk Sri Nazir Razak said the banking group would be looking for more organic growth in other ASEAN markets.

"We are still chasing our Vietnam banking license, and are actively looking for opportunities to enter the Philippines market."

"We also have a long term plan to build our presence in China and will be launching banks in Hong Kong and Shanghai by June," he added.

Meanwhile, Nazir also said the banking group's Indonesian operations (CIMB Niaga) was targeting a loan growth of between 14%-18%, in line with the industry average.

As for CIMB Thai, it will be opening a branch in Laos in 2QFY2014.

Kim Hin Industry Bhd informed Bursa Malaysia it had posted a net profit instead of net loss in 2013 due to over-provision of income tax in the unaudited results.

It said there is a deviation of 367% between its group’s net profit stated in the audited financial statements for the year ended 31 December 2013 and net loss in the unaudited results announced on 26 February 2014.

The deviation was caused mainly by the over-provision of income tax expense for the year, said the company.

As a result, the company posted a profit after tax and minority interest of RM24,000 in the audited financial statements, instead of a loss of RM9,000 as stated in the unaudited results in February.