Ireka, F&N, Hock Seng Lee, Boustead Plantations, KLCCP, Gadang, Handal, Hua Yang, Zhulian, Econpile, Salcon, P.A. Resources and UOA REIT

TheEdge Wed, Jan 24, 2018 11:45pm - 6 years View Original


KUALA LUMPUR (Jan 24): Based on corporate announcements and news flow today, stocks in focus on Thursday (Jan 25) may include: Ireka Corp Bhd, Fraser & Neave Holdings Bhd, Hock Seng Lee Bhd, Boustead Plantations Bhd, KLCCP Stapled Group, Gadang Holdings Bhd, Handal Resources Bhd, Hua Yang Bhd, Zhulian Corp Bhd, Econpile Holdings Bhd, Salcon Bhd, P.A. Resources Bhd and UOA Real Estate Investment Trust.

Ireka Corp Bhd has entered into a Memorandum of Understanding with CRRC Urban Traffic Co Ltd (CRRC UT) and Shentong Express Co Ltd to establish a formal working relationship to explore opportunities in the logistics sector.

The parties are looking into opportunities in investment and development of logistics warehouses, distribution centres, other ancillary real estate facilities, and infrastructure and equipment to support STO?s expansion in Malaysia and Southeast Asia.

CRRC UT ? a member of China?s CRRC group ? has a strategic stake in Ireka with an 8.48% equity interest. The CRRC Group is the world?s largest manufacturer of rolling stock, rail and transportation solutions.

Fraser & Neave Holdings Bhd (F&N) said the stronger ringgit is a boon for the food and beverage company given its position as a net importer.

This is especially so for its dairy products segment as F&N obtains its raw materials from outside Malaysia compared with the soft drinks segment, as there are local sugar suppliers in the country.

"The stronger ringgit is definitely good for the group and its overall business. For example, we import a lot of dairy products especially raw materials from several foreign countries, and transactions are predominantly done in US dollar," its chief financial officer Tan Hock Beng.

Hock Seng Lee Bhd (HSL), which suffered from margin squeeze last year, is confident of improving its profit margin to double digits in the financial year ending Dec 31, 2018.

The confidence hinges on expectation that its three mega projects in Sarawak would progress smoothly.

Last year, the delays in phase 2 of the Kuching centralised wastewater management system project, as well as Package 7 of the Pan Borneo Highway dragged HSL?s net profit margin to around 9% in the second and third quarter of FY17.

Boustead Plantations Bhd (BPB) plans to sell plantation land to pay off debts and tax.

It intends to dispose of three parcels of freehold plantation lands measuring 138.89 hectares on mainland Penang for RM136.04 million to repay RM127.5 million bank borrowings, and RM6.8 million real property gains tax.

BPB has entered into two sale and purchase agreements with Sunrich Conquest Sdn Bhd and Titanium Greenview Sdn Bhd for the sale of 82.84 hectares, and 56.05ha of land, for RM81.14 million and RM54.9 million, respectively.

KLCCP Stapled Group's net profit remain relatively flat at RM345.52 million for the fourth quarter ended Dec 31, 2017 (4QFY17) compared with RM347.13 million in 4QFY16, despite stronger performance in its hotel segment.

Earnings per share fell to 19.14 sen from 19.23 sen.

The higher revenue and earnings for the hotel segment came about after Mandarin Oriental Hotel, Kuala Lumpur completed the first phase of guestroom renovation.

Quarterly revenue came in at RM352.07 million, up 2.1% from RM344.69 million in 4QFY16.

The group maintained its momentum in 2017 and distributed 97% of its overall distributable income with a distribution per stapled security of 36.15 sen representing an increase of 1.4% compared to 2016.

Despite a drop in revenue, Gadang Holdings Bhd?s net profit for the second quarter ended Nov 30, 2017 (2QFY18) grew 1.7% to RM28.37 million from RM27.91 million a year ago, thanks to lower cost of sales.

Gadang said cost of sales incurred during the quarter was 12.8% lower year-on-year, compared with RM104.93 million reported in 2QFY17.

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