Stocks To Watch - Alam Maritim, HELP, ETI Tech, Shangrila and KKB Engineering

KUALA LUMPUR (March 25): With the first financial quarter of many companies coming to an end this weekend, window-dressing activities may resume and this may cause some company shares to perk up on or before Friday.

Otherwise, according to corporate announcements made to Bursa Malaysia, the stocks that may stir investor interest could include Alam Maritim, HELP, ETI Tech, Shangrila and KKB Engineering.

ALAM MARITIM RESOURCES BHD [] said its wholly-owned unit, Alam Maritim (M) Sdn Bhd, has received a letter of award from an independent oil and gas exploration and production company for the provision of underwater services comprising subsea inspection, maintenance and repair.

The contract, with value of up to RM182 million, is for three years with an extension option for another one year.

The company said the contract is expected to contribute to its earnings and net assets for the financial year ending 31 December 2013 up to 2017.

HELP INTERNATIONAL CORPORATION [] Bhd posted a net profit of RM1.86 million for the first quarter ended 31 January 2013, up 10.7% from RM1.68 in similar quarter a year ago.

Its revenue also rose to RM28.68 million from RM26.85 million.

“The growth in revenue and profit were largely due to an increase in student enrolments and a higher number of subjects undertaken by students in the various campuses,” the company said in its filing to Bursa Malaysia.

It said its directors expect the financial performance of the group to be “satisfactory for the financial year 2013”.

ETI TECH CORPORATION BHD [] announced that its wholly-owned subsidiary, ETI Tech (M) Sdn Bhd, has failed to settle debts worth RM11.7 million to Maybank Bhd.

The group said that it does not have sufficient funds to make the repayments to Maybank, and legal proceedings may be initiated by Maybank against the group.

“The key contributing factors leading to the default in payment was due to a delay in collections and delay in realisation of projects over the past few years,” it said.

With ETI Tech (M) being a major subsidiary of the group, the default may trigger a cross default with another lender, HONG LEONG BANK BHD [], the company said.

But it said that a potential investor has issued an initial letter of authorisation to Maybank and Standard Chartered Bank Berhad on January 30, 2013.

The letter pertains to the drawdown of a Bankers’ Guarantee amounting to US$10 million and another US$5 million made separately to the two banks, to be utilised for increase in credit line and partial settlement of the outstanding loans.

Shangri-la Hotels (Malaysia) Bhd (SHMB) announced that its key shareholder Kuok Brothers Sdn Bhd has acquired 98,014,500 shares in SHMB via a direct business transaction, pursuant to a share purchase agreement dated 20 March 2013 entered into with Standard Chartered Private Equity Limited.

As a result of the acquisition which was completed today (March 25), Kuok Brother’s direct interest has risen to 22.28%.

Ahead of the announcement, shares of SHMB jumped in early trades today. At market close, the stock rose 9 sen or 2.19% to end at RM4.20 after hitting a high of RM4.30.

KKB ENGINEERING BHD [] announced that Oceanmight Sdn Bhd, an associate company of KKB, has been licensed as “approved supplier” by PETRONAS, for the category of “OFFSHORE FACILITIES CONST-MAJOR ONSHORE FABRICATION”.

The licence is valid for three (3) years and shall expire in year 2016. It is expected to contribute positively to the earnings and net assets of KKB, commencing 2014, according to the company.

It has been widely reported that Petronas has allocated RM300 billion as capital expenditure for five years, and more than RM60 billion is expected to be spent this year.


Written by Ho Wah Foon of theedgemalaysia.com