May 7th - Stocks To Watch Petronas Dagangan, Encorp, Hartalega, Mulpha Int, Dialog, Damansara Realty, Titijaya, Hektar REIT

by **Cals** Wed 07 May 2014, 01:41

Stocks To Watch Petronas Dagangan, Encorp, Hartalega, Mulpha Int, Dialog, Damansara Realty, Titijaya, Hektar REIT

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 06 May 2014 19:40

KUALA LUMPUR (May 6): Based on corporate announcements today, the companies that may be in focus tomorrow include the following:

Petronas Dagangan Bhd (PDB) said it posted a net profit of RM155 million for the first quarter to end-March 2014, down 34.6% from RM237 million netted a year ago.

Earnings per share fell to 15.6 sen from 23.9 sen for the same quarter in the previous year.

But it registered a higher revenue of RM8,293 million for the quarter, an increase of RM674 million over RM7,619 million achieved a year ago.

The marketing company, 69.86%-owned by national oil company Petronas, declared a single-tier interim dividend of 12 sen per share.

The company said outlook for the year is “challenging”.

Encorp Bhd announced that Felda Investment Corporation Sdn Bhd will be acquiring a 49.45% stake in Encorp for a total of RM239.7 million.

Felda Investment entered into these agreements with Lavista Sdn Bhd and Pegang Impian Holdings Sdn Bhd for the purchase of their respective stakes of 66.6 million shares (29.85%) and 43.75 million shares (19.60%) held by both companies in Encorp.

With the completion of the conditional sale and purchase agreements, Felda Investment will be obliged to extend a mandatory take-over for the remaining shares, warrants and redeemable convertible secured loan stocks.

Encorp’s shares will be acquired for a cash offer price of RM1.55 per share, while its warrants and loan stocks will be acquired for RM0.55 and RM1.55 per unit respectively.

Encorp is involved in property development and construction.

Hartalega Holdings Bhd reported flat net profit of RM233.2 million for its financial year ended March 31, 2014, compared to RM233.3 million in previous year.

Revenue for the year rose by 8% to RM1.10 billion from RM1.03 billion in the year before.

The group announced a third interim dividend payment of 3.5 sen per share for the year, with entitlement date on May 28, 2014, payable on June 18, 2014.

For the fourth quarter to end-March 2014, the glove company posted a sharply lower net profit of RM49.2 million, compared to RM62.3 million a year ago.

But revenue rose to RM280.4 million, from RM269.8 million, which was attributed to the expansion in production capacity and the increase in demand.

UEM Sunrise Bhd announced it had signed a collaboration agreement with Mulpha International Bhd for the development of three sets of roadworks in Iskandar Malaysia.

Nusajaya Rise Sdn Bhd (NRSB) and Leisure Farm Corporation Sdn Bhd (LFC), subsidiaries of UEM Sunrise and Mulpha respectively, will build new roads and upgrade existing ones in Gelang Patah and Gerbang Nusajaya, to improve access to Gerbang Nusajaya and Leisure Farm Resort.

NRSB and LFC have respective stakes of 59% and 41% in the project, which is valued at RM107 million.

The JV expects to complete Roadworks 1 and 2 by December 2016, while Roadworks 3 is expected to be completed in December 2018.

Dialog Group Bhd has proposed a 1-for-1 bonus issue of up to 2.67 million shares, and also a 1-for-125 special share dividend, where the company will distribute up to 21.17 million treasury shares.

The group said that the entitlement date for the proposals will be determined at a later date.

The proposals will be implemented by capitalising up to approximately RM289.8 million from the share premium account of Dialog. As at end-June 30, 2013, the share premium balance at group and company levels are RM335.60 million and 335.57 million respectively.

The group expects to complete the proposals by the third quarter of calendar year 2014.

Damansara Realty Bhd (DBHD) may be in focus after Johor Corporation Bhd (JCorp) denied speculations that the former will take over its subsidiary, KFC Holdings (Malaysia) Bhd.

“JCorp is not aware of such proposal and has not solicited any proposal in relation to the mentioned companies,” said the Johor state corporation in an email statement to theedgemalaysia.com.

Earlier today, DBHD rose 13% after the firm was rumoured to take over KFC.

Titijaya Land Bhd has confirmed it is exploring the possibility of acquiring a piece of land in Penang for RM126 million cash, as reported by The Edge Financial Daily today.

The daily today quoted sources as saying the property developer is looking to acquire a piece of land, measuring 20.4 acres in the south eastern part of Penang island, from its major shareholder.

Titijaya said it is in the midst of evaluating the development potential on the said land and the benefits accrued to the firm.

Hektar Real Estate Investment Trust (Hektar REIT) said its pre-tax profit for the first quarter ended March 31 slipped to RM10.46 million, from RM11.06 million registered in the same period a year ago.

Revenue was marginally higher at RM30.18 million, against RM30.08 million previously.

Hektar REIT declared a first distribution per unit of 2.60 sen, maintaining the distribution declared in the previous year's corresponding quarter.