Stocks to Watch - Sime Darby, icapital, AMMB, Century Logistics, Press Metal Bhd

KUALA LUMPUR (Nov 8): Based on corporate developments and reporting of companies' quarterly results, the stocks of listed companies which may attract trading interest include SIME DARBY BHD []; ICAPITAL.BIZ BHD []; AMMB HOLDINGS BHD []; CENTURY LOGISTICS HOLDINGS BHD []; and PRESS METAL BHD [].

At Sime Darby's long-drawn AGM on Thursday, shareholders unexpectedly saw Tun Musa Hitam "retiring" as chairman and director. Another director, who has been charged for insider trading, has withdrawn from seeking re-election earlier.

The sudden departure of Musa might cause some market reaction due to his status in society and the respect he commands. He was the deputy prime minister in the early 1980s under the premiership of Tun Dr Mahathir Mohamad. He is also holding several other high-profile positions in government-linked organisations.

icapital is likely to remain in the limelight due to the conference call given by foreign hedge fund manager Andrew Pegge on Thursday.

Pegge and two others linked to him are seeking to be elected into the board of icapital. Pegge said if he does not get elected at the AGM this Saturday, he will requisition for a general meeting to get himself elected, and he predicted there would be changes to the board soon.

The fund manager of icapital, Tan Teng Boo, has openly declared he does not welcome Pegge's entry, as he fears Pegge may come in to disrupt the operation of the closed-end fund as he had done in Singapore and elsewhere.

AMMB may also lure some investor interest after reporting RM845.2 million in net profit in the first half of the financial year ending March 31, 2013 (1HFY13), which was 7.1% higher than in the corresponding period last year, on the back of higher net interest income and lower allowances.

The group's profit after tax improved by 8.6% to RM877.6 million from a year ago. Its earnings per share (EPS) increased by 6.9% to 28.2 sen while return on equity stood at 14.7%, which was higher than the group's target of between 14% to 14.5% for FY13.

Century Logistics reported a vastly reduced net profit of RM3.97 million for the third quarter ended Sept 30, compared to RM8.99 million in the third quarter of 2011. Its revenue also reduced to RM61.10 million, from RM79.44.

Press Metal may also see its share price surge as it posted a much higher net profit of RM136.09 million for the third quarter of 2012, compared to RM20.13 million in July-Sept 2011, on slight increase in revenue that stood at RM609.13 million.

The seven times increase in net profit was largely due to the recognition of a deferred tax incentive.


Written by Ho Wah Foon of theedgemalaysia.com