Stocks to watch: DRB-Hicom, Proton, GoldIS, Faber, Mah Sing

KUALA LUMPUR (Dec 13): DRB-HICOM BHD [] and PROTON HOLDINGS BHD []
would continue to be in focus on Wednesday amid the heavy newsflow
despite analysts’ caution that DRB-Hicom’s takeover of Proton might not
add value.

The latest development was Proton adviser, Tun Dr Mahathir Mohamad
that the buyer of Khazanah Nasional Bhd's 42.7% stake in the national
car maker might have to inject maybe another RM2 billion more.

Dr Mahathir, the prime mover behind the national car project, said at
the moment, Proton cannot make progress, introduce new vehicles and all
that, because of shortage of funds.

The call warrants of Proton and DRB-Hicom were very actively traded
on Tuesday on expectations of DRB-Hicom’s purchase of the Khazanah
stake.

Other counters which could see trading interest are GOLDIS BHD [], FABER GROUP BHD [], MAH SING GROUP BHD [], RAMUNIA HOLDINGS BHD [].

GoldIS’s net profit for the third quarter ended Oct 31, 2011 surged
to RM237.4 million from RM11 million a year earlier, due mainly to the
gain on disposal of a subsidiary amounting to RM221.2 million. Revenue
for the quarter rose 49.7% to RM75.82 million from RM50.64 million in
2010.

It declared a gross second interim dividend of half a sen and 9.50 sen single tier per ordinary share, to be paid Jan 18, 2012.

As for Faber, Al Femah Contracting and Transporting Establishment is
seeking RM13.10 million in claims from Faber Group Bhd’s subsidiary and
Projek Penyelenggaraan Lebuhraya Bhd (Propel).

Faber said its subsidiary Faber Limited Liability Company (Faber LLC)
had received a summons and statement of claim from Al Femah in the UAE.

Ramunia posted net profit of RM112,000 in the fourth quarter ended
Oct 31, 2011 compared with RM30.36 million when there was a one-time
writeback from a previously concluded scheme of arrangement. Its revenue
was RM15.67 million compared with only RM992,000 a year ago. Its
earnings per share were 0.02 sen compared with 4.91 sen.

For the financial year ended Oct 31, 2011, its net profit plunged to
RM4.66 million from RM65.78 million in the previous financial year. Its
revenue fell 45.6% to RM18.95 million from RM34.86 million.

Mah Sing Group Bhd has disputed with the joint venture partners for
the proposed development of a piece of prime land along Jalan Tun Razak
here and had maintained the agreement is valid.

Mah Sing said on Tuesday the two parties -- Asie Sdn Bhd and Usaha
Nusantara Sdn Bhd -- had claimed the joint venture agreement (JVA) for
the development of the 4.08 acres site had lapsed “and is of no effect
from Dec 2, 2011” as the conditions were not met.

“Mah Sing however, takes a different position and maintains that the
JVA has not lapsed,” it said, referring to its Dec 6 announcement that
it waived the conditions in the Aug 2 announcement.

S P Setia Bhd’s request for more time to fulfill the conditions in
its purchase of 1,010.5 acres of land in Ulu Langat, Selangor for
RM330.13 million was rejected by the vendor Ban Guan Hin Realty Sdn Bhd.

S P Setia said Ban Guan Hin Realty did not agree to an extension of
the period to fulfill the conditions, including securing the Estate Land
Board’s approval for the sale and transfer of the land to the
purchaser.