Stocks to watch: MAS, Boustead, Cypark, SMR, VS Industry

KUALA LUMPUR (Jan 1): The local stock market could see some profit
taking in the first week of the trading year day after the recent run-up
and last-minute window dressing activities. The rally was underpinned
by local funds and pushed the FBM KLCI into positive territory for 2011.

The 30-stock index rallied more than 45 points over a seven-day trading
period to end 2011 at 1,530.7. Total market capitalisation increased by
RM11.38 billion over the same period to end the trading year at
RM1,284.55 billion.

Among the stocks which could see trading
interest following corporate developments include MALAYSIAN AIRLINE
SYSTEM BHD [] (MAS), Boustead Holding Bhd, environmental TECHNOLOGY []
and engineering specialist CypARK RESOURCES BHD [], SMR TECHNOLOGIES BHD
[], VS Industry Bhd and SILVER BIRD GROUP BHD [].

Last Friday,
MAS unveiled its new management structure which included several new
business units, the entry of two senior aviation experts and the
departure of several top officials.

Focus would be on MAS'
long-haul business, with its group chief executive officer Ahmad Jauhari
Yahya taking on the role as CEO of long-haul. His deputy, Mohammed
Rashdan, who is CEO of short-haul, would head the short-haul, group
finance, aircraft finance & management, and in the interim helm
commercial.

BOUSTEAD HOLDINGS BHD []'s 51% owned MHS Aviation
Bhd is acquiring 16 aircraft for RM586.20 million from DRIR Equities Sdn
Bhd. DRIR owns the other 49% of MHS.

Cypark's earnings fell
21.5% to RM4.11 million in the fourth quarter ended Oct 31, 2011 from
RM5.24 million a year ago due to lower profit margins than the previous
quarter. Gross profit margin was 25%, a decline from the 36% a year ago
when it benefited from design income fee and good material rate
negotiated in the quarter.

SMR's unit SMR HR Group Sdn Bhd has
secured a RM14 million contract from the Human Resources Ministry. The
one-year contract is to implement a trainining programme known as
Accelerated Skills Enhancement Training Programme (ASET).

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VS Industry Bhd's earnings fell 10.9% to RM11.59 million in the
firstquarter ended Oct 31, 2011 from RM13.01 million a year ago due to
stiffer competition and losses from its China associate. Its revenue
increased 14.1% to RM282.43 million from RM247.39 million while earnings
per share were 6.39 sen compared with 7.27 sen.

Silver Bird
called off its proposed placement exercise and a subscription commitment
of up to RM100 million with GEM Global Yield Fund. It had to abort the
proposals as Bursa Malaysia Securities Bhd rejected its waiver from
complying with all the requirements to undertake back-to-back
placements.

Malaysian Rating Corp Bhd (MARC) lowered its rating
on MNRB Holdings Bhd's (MNRB) RM200 million Islamic medium term notes
(IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive
years of losses and thin cash flow coverage measures.

The
ratings agency said while the outlook for the debt notes was stable, the
downgrading reflected weakened holding company level financial metrics
after losses for FY ended March 31, 2010 (FY2010) and FY2011.


JAKS Resources Bhd posted net losses of RM25.13 million in the fourth
quarter ended Oct 31, 2011 from a net profit of RM1.19 million a year
ago due to goodwill impairment adjustment of RM25.90 million.


Its revenue rose 9% to RM93.24 million from RM85.74 million mainly due
to higher revenue recognition of works done for projects in the
CONSTRUCTION [] division. Loss per share was 5.73 sen compared with
earnings per share of 0.27 sen.

For the financial year ended Oct
31, 2011, it swung into net losses of RM22.89 million compared net
profit of RM2.28 million in the previous financial year.