Stocks To Watch Aeon Credit, Far East, glove stocks, PetDag, Tebrau, Zhulian, Hap Seng, LBS

by **Cals** Thu 17 Apr 2014, 01:20

Stocks To Watch Aeon Credit, Far East, glove stocks, PetDag, Tebrau, Zhulian, Hap Seng, LBS

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 16 April 2014 19:38

KUALA LUMPUR (April 16): Based on corporate events and announcements today, the stocks deserving some attention tomorrow may include:

Aeon Credit Service Bhd declared a final dividend of 24 sen per share, after posting a 22.6% year on year rise in profit to RM47.8 million for its fourth quarter to Feb 2014.

Aeon Credit’s full year net profit rose 30.7% to RM175 million.

In a statement, Aeon Credit said the net profit of RM175.35 million for the financial year ended 20 February 2014 was an increase of 30.7% from a net profit of RM134.13 million for the previous financial year.

It added total revenue for the financial year ended February 2014 of RM672.76 million represented growth of 44.0% over the previous year’s revenue of RM467.13 million.

For the fourth quarter, revenue was RM189.56 million or growth of 44.0% over the corresponding period last year.

The net profit recorded for the quarter to Feb 2014 of RM47.82 million. This represented growth of 22.6% from a net profit of RM39.01 million for the same quarter last financial year.

“Growth in assets and revenue for the year was driven by strong performance in easy payment operations while growth was also noted for the credit card operations.”

The company said it will be able to maintain its business performance in the current fiscal year.

Far East Holdings Bhd said it is recommending a final single tier dividend of 15 sen per share for the financial year ended 31 December 2013.

The entitlement date and payment date would be announced at a later date, it said.

Glove stocks may be in focus after its trade group said prices will see a hike due to the increase in gas prices.

President of Malaysian Rubber Glove Manufacturers Association (MARGMA), Lim Kwee Shyan, said the natural gas hike effective May 1 would raise production costs significantly for rubber glove manufacturers.

Production cost of gloves will increase by US$0.50 to US$0.80 (RM1.62 to RM2.59) per 1000 gloves for examination and surgical gloves, he said.

Lim said there will be other cost increases, in addition to the above-mentioned cost hike.

“Glove buyers and manufacturers are advised to compute this in their glove price review,” he said.

Petronas Dagangan Bhd (PetDag) plans to allocate a capital expenditure (capex) of up to RM700 million for domestic and international expansion.

Speaking at a media briefing today, PetDag's chairman Datuk Wan Zulkiflee Wan Ariffin said RM500 million will be allocated for domestic and RM200 million for international expansion.

He added that this will strengthen the group's four core businesses: retail, commercial, LPG and lubricant.

"The capex will be used for increasing retail network of service stations, terminals and depots as well as enhancing its IT systems," said Wan Zulkiflee.

Last year there were 42 new Service stations opened, and this year the company plans to open 40-50 new stations.

"We will nurture and grow our businesses in the Philippines, Myanmar and Thailand. We will focus predominantly into making our LPG supply in Philippines more competitive by looking into investing in more terminals," he said.

Tebrau Teguh Bhd, a Johor company controlled by Tan Sri Lim Kang Hoo, may come under speculative play after news that The Greenland Group of China is acquiring a prime waterfront land in Iskandar Malaysia from a company in which Lim has interest.

The property conglomerate signed an agreement in Shanghai with Johor-based Iskandar Waterfront Holdings Sdn Bhd (IWH) for the purchase of 13.96 acres in Danga Bay for RM600 million, according to a IWH press statement.

The site, near Johor Bahru city, has been earmarked for a mixed integrated joint-venture development with IWH. This five-year project will have a gross development value (GDV) of RM2.2 billion.

“The Shanghai-based Group is keen to expand its land bank in Johor and is finalising talks with IWH and its associated companies for two or three more land acquisitions soon,” said IWH in the statement.

IWH is Lim’s partnership involving the state and federal governments and local investors. It is the master developer of some 1,620ha of waterfront land on the eastern and western sides of the Johor Causeway.

Zhulian Corporation Bhd’s net profit plunged 42% year-on-year (y-o-y) to RM17.2 million in the first quarter ended Feb 28, 2014, from RM29.7 million a year ago.

Revenue also plunged 39% y-o-y to RM66.2 million from RM108.7 million.

Zhulian declared a first interim single tier dividend of 3 sen per ordinary share of RM0.50 each.

Zhulian said the decrease in revenue was mainly due to a fall in both local and overseas market demands. “The outlook of the current year remains cautiously optimistic as currently consumer sentiment on spending has been increasing.”

Hap Seng Consolidated Bhd, an authorised dealer of Mercedes-Benz vehicles, expects to sell more units of passenger vehicles this year than the 1,976 units it sold last year, with the opening of its new autohaus in the southern Klang Valley.

Located in Balakong, the autohaus is the company's sixth outlet, involving an investment of RM60 million.

On other business of Hap Seng, group managing director Datuk Edward Lee Ming Foo said the company would be launching a property project in Bangsar soon.

"Our prospect for this year should be very good, as the economy is improving, plus the sector in which we are in, seems to be doing well," he added.

LBS Bina Group Bhd is set to launch two more development projects in Iskandar Malaysia, in a move to tap red-hot property demand in the booming economic zone.

The projects would be undertaken by the company itself, and fall into the mid-range segment, said Managing Director Datuk Seri Lim Hock San.

"I don't see over supply in Iskandar. If Chinese developers are eagerly tapping the development there, they must have done their homework," Lim told Bernama during a recent media trip to Cameron Highlands to witness the launch of its sales gallery.

"Iskandar is being heavily promoted in China and almost everyone there knows this is the place to invest, thanks to its proximity to Singapore," he added.

The two new projects with 2,700 units of residential and commercial properties in Iskandar Malaysia, will have gross development value of RM2 billion.