Stock to watch: DiGi.Com’s 1Q profit jumps to RM485.16m

by **Cals** Mon 28 Apr 2014, 13:12

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 28 April 2014 09:17

KUALA LUMPUR: Based on corporate announcements last Friday, the companies that may attract interest today could be:

DiGi.Com Bhd said its net profit for the first quarter ended March 31, 2014, jumped to RM485.16 million from RM328.65 million on RM1.72 billion in revenue versus RM1.65 billion, a year ago due to a surge in usage of mobile Internet services.

The telecommunications company also declared a first interim dividend of 6.2 sen per share totalling RM482 million or 99.4% payout ratio to be paid to shareholders on June 6.

Earnings per share was 6.24 sen compared with 4.23 sen a year earlier, while net assets per share was 80 sen.

In a statement last Friday, DiGi chief executive officer (CEO) Henrik Clausen said that growth in Internet revenue was fuelled by higher usage and a bigger customer base.

He said the company had committed to investing up to RM900 million in capital expenditure this year to strengthen its network position.

Southern Acids (M) Bhd has been issued with an unusual market activity (UMA) query by Bursa Malaysia due to the spike in its share price and high volume over the past few days.

At the close last Friday, Southern Acids was traded at RM5.63, rising 64 sen or 12.83% with 2.23 million shares done. The stock had earlier risen as much as 99 sen or 20% to an intra-day high of RM5.98. Since Tuesday, Southern Acids’ share price has risen by as much as RM1.64 or 40%.

Bursa Malaysia had ordered the company to make due enquiries with its directors, major shareholders and other relevant persons for the UMA.

Wong Engineering Corp Bhd had also been slapped with an UMA query by Bursa Malaysia on the rise of its share price and volume last Friday.

Wong, the sixth top gainer saw some 17 million shares traded and closed higher at 82 sen after gaining 19.5 sen or 31%.

Earlier, theedgemalaysia.com had reported that Wong’s phenomenal gain could be due to speculation regarding its negotiation with a third party for the supply of mechanical & industrial products.

Bursa had ordered the engineering firm to respond to its queries immediately pursuant to making due enquiries with its directors, major shareholders and other relevant persons.

PDZ Holdings Bhd said Tan Sri Tan Hua Choon had disposed of his entire shareholdings of 166.3 million shares or a 19.13% stake to Pelaburan Mara Bhd.

In a filing with Bursa Malaysia, Pelaburan Mara now owns a total of 233.25 million shares or 26.83% stake in the company.

The Edge Financial Daily, quoting a source familiar with the matter, had earlier reported that Pelaburan Mara was expected to bring in a new business to PDZ.

“The new business will most likely be related to the oil and gas (O&G) sector and is expected to arrest the current losses faced by PDZ’s container shipping business.

“Pelaburan Mara is looking at buying O&G assets that will be injected into PDZ, transforming the shipping company into an O&G service provider,” said the source.

Digistar Corp Bhd announced that its wholly-owned subsidiary Digistar Holdings Sdn Bhd (DHSB) had entered into a memorandum of understanding with the Royal Malaysian Police Force to form SAFECAM Partnership.

“DHSB will have a collective partnership with the police to form SAFECAM Partnership with the objective to reduce the public crime rate,” said Digistar in an announcement last Friday.

Under the agreement, both parties will discuss essential issues for the success of the partnership, while members of SAFECAM will prepare the closed-circuit television system at their own cost as set out by the police.

The value of the contract was not stated in the announcement.

Caring Pharmacy Group Bhd said its net profit for the third quarter ended Feb 28, 2014 stood at RM6.6 million, while revenue rose to RM81.97 million.

As the company was recently listed, it did not provide comparative figures for the previous year.

It said net profit for the nine months to February was RM13.84 million, while cumulative revenue totalled RM249.7 million.

“During the quarter under review, we have established an additional five new outlets. As at Feb 28, we have a total of 93 community pharmacies,” said the wholesale drug distributor.

On its prospects, the company maintains its view that the group will continue to be profitable.

SCGM Bhd, a Johor-based manufacturing company, has attracted institutional investors who have bought into company and caused the recent surge in its share price, said an analyst and a company source.

The stock saw a 19% jump to a high of RM1.45 on April 21, with volume hitting a record high of 12.93 million shares.

“As far as I know it’s institutional interest that has moved the stock,” said the analyst.

“The company only has 80 million shares. In order for a large quantity of shares to be purchased, shares had to be freed up,” he added.

A filing on Bursa Malaysia showed a disposal of 10 million shares at RM1.25 per share by its directors on April 21.

This article first appeared in The Edge Financial Daily, on April 28, 2014.