Trading ideas: Mestron, Supermax, Iris, Homeritz, KTG

TheStar Tue, Feb 02, 2021 09:02am - 3 months ago

KUALA LUMPUR: Stocks to watch on Tuesday include Mestron Holdings Bhd, Supermax Corp Bhd, Iris Corp Bhd, Homeritz Corp Bhd and KTG Bhd, according to JF Apex Research.

Mestron has issued a clarification to say that it did not obtain approval or a clearance letter from the Ministry of Health (MoH) to purchase or distribute Covid-19 vaccines in Malaysia.

Instead, it clarified that its intention is to explore and venture into the vaccine distribution business by partnering with China-based Zhongyu Yexing (Chengdu) Industrial Co Ltd.

Supermax reported a new record net profit of RM1.06bil for the second quarter ended Dec 31, 2020, up 34% from RM789.52mil in the preceding quarter.

Iris said it has secured an immigration system contract from the government worth RM1.16bil.

Homeritz's net profit for the first quarter ended Nov 30, 2020 fell 9.6% to RM7.3mil, from RM8.08mil a year ago, weighed down by the weakening US dollar, as well as rising raw materials and labour costs.

KTG has proposed a private placement of up to 20% of its shares to raise as much as RM29.5mil to finance the moneylending and glove manufacturing businesses that it recently ventured into.

Apparel manufacturer and fashion retailer Jerasia Capital plans to raise up to RM261.3mil by way of a rights issue with free warrants, as part of its efforts to venture into glove manufacturing.

Overnight, US markets rallied overnight in a sharp rebound amid volatile trading as investors monitor corporate earnings and stimulus talks.

The Dow Jones Industrial Average rose 229.29 points, or 0.76%, to 30,211.91, the S&P 500 gained 59.62 points, or 1.61%, to 3,773.86 and the Nasdaq Composite added 332.70 points, or 2.55%, to 13,403.39.

Similarly, European stocks advanced following progress in deployment of coronavirus vaccine.

“Following the bullish sentiment in Wall Street, the FBM KLCI could stage a rebound with support at 1,550 points,” JF Apex said.

Related Stocks

APEX 0.905
IRIS 0.260
KTG 0.195


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