Stocks to watch: Kim Lun, Kencana, Atlan, BCorp

Shares on Bursa Malaysia are expected to be range bound on Tuesday, June 29 in the absence of strong catalysts from Wall Street where US stocks ended slightly lower.

Gains in consumer-related stocks, including tobacco shares, were offset by losses in the energy sector. The Dow Jones industrial average dropped 5.29 points, or 0.05 percent, to 10,138.52. The Standard & Poor's 500 Index slipped 2.19 points, or 0.20 percent, to 1,074.57. The Nasdaq Composite Index shed 2.83 points, or 0.13 percent, to 2,220.65.

At Bursa Malaysia, stocks to watch include Kim Lun, Kencana Petroleum, Atlan Holdings, DFZ Capital, Berjaya Corporation and Ho Hup CONSTRUCTION [].

Kim Lim makes its debut and it will be the first construction listing in more than three years. Its client base mainly comprises of listed property developers.

OSK Research said it likes Kim Lun’s exposure to the Iskandar region and utilization of the IBS concept, which enhances efficiency.

“We also see strong potential for its concrete division in the Singapore market. Our RM1.27 TP for Kim Lun is based on 8x FY10 earnings,” it said. Its offer price is 97 sen.

Meanwhile, Kencana posted net profit of RM31.17 million for the third quarter ended April 30, 2010 from RM27.64 million.

The group recorded revenue of RM280.4 million and profit before taxation of RM36.5 million. Compared to a year ago when revenue was RM290.2 million, there was a 3% decline mainly due to progress achieved for contracts in hand, which was in line with the project delivery schedule.

Atlan proposed a reverse takeover of Esmart Holdings Ltd, which is listed on the Catalist board of Singapore Exchange by injecting two of its subsidiaries.

Atlan will inject DFZ CAPITAL BHD [] (DFZ) and Darul Metro Sdn Bhd into Esmart under the corporate exercise for an aggregate consideration of RM670.58 million or S$285.35 million.

Berjaya Corp’s share price had on Monday, fallen to its lowest since February this year on investors' disappointment over the government's stance that no sports betting licence would be issued.
SUNWAY HOLDINGS BHD [] has secured a RM129 million contract from PML Dairies Sdn Bhd to build a dairy product factory in Pulau Indah, off Port Klang.

Ho Hup 70% owned Bukit Jalil Development Sdn Bhd's proposed sale of its property to Action Master Sdn Bhd was not carried at the EGM on Monday.

The resolution was to dispose of a plot of pland, measuring 13,398 sq metres to Action master for cash consideration of RM7.64 million. Part of the proceeds, about RM3.82 million would be used to repay the borrowings and another RM3.72 million would be used as working capital.



Written by Joseph Chin
The Edge Malaysia