Stocks To Watch - MRCB, Protasco, Plantation stocks, MAS, AirAsia, MyEG, KLCC Reit, Perisai, Smartag

KUALAL LUMPUR (Apr 10): Based on news flow and corporate announcements today, the stocks that may be in focus tomorrow could include the following:

Malaysian Resources Corporation Bhd (MRCB) announced the sale of Platinum Sentral to Quill Capita Trust (QCT) for RM750 million.

MRCB stands to gain RM240 million from the disposal of the property. MRCB said the gain represents 15 sen earning per share for MRCB for this financial year.

The RM750 million sale will be satisfied via cash of RM486 million and the issuance of 206.25 million new QCT units at RM1.28 per unit.

Simultaneously, MRCB had entered into share sale agreements with CapitaLand RECM Pte Ltd and Coast Capital Sdn Bhd to acquire their respective 40% and 1% stakes in Quill Capita Management, the management company of QCT, for RM6 million.

With the acquisition of the 41% stake, MRCB will be a significant shareholder in Quill Capita Management.

“We will use QCT as the platform for further injection of other prime assets in the pipeline,” said MRCB, whose share closed 2 sen up to end at RM1.64.

Protasco Bhd is eyeing 15% profit growth in its current financial year ending December 31 2014.

Group managing director Datuk Seri Chong Ket Pen said profit growth would be underpinned by growth from the company's construction segment, besides engineering and infrastructure operations.

Speaking at a talk today, Chong said Protasco's total orderbook at its construction and infrastructure divisions is expected to increase 42.9% to RM1 billion from RM700 million at the moment.

He said the company had unbilled real estate sales of about RM196 million.

"We are in the process of unlocking the value of the 40ha (100-acre) land next to Putrajaya," he said.

Chong said the development had a RM10 billion GDV (gross development value).

He said the group was planning to roll out soon, its Phase 2A university apartment which is situated on the same piece of land. "It will take about 15 years to complete the whole project," Chong said.

Plantation stocks may be reacting to Malaysia's March palm oil data. Official figures today show that end-stocks rose in March, higher than market estimates.

Stocks in March rose nearly 2 percent to 1.69 million tonnes, the Malaysian Palm Oil Board (MPOB) said in a monthly report today, against forecasts for a drop to 1.58 million tonnes.

Crude palm oil production in March jumped 17.4 percent from a month ago to 1.5 million tonnes, beating market forecasts for a 9 percent rise to 1.39 million tonnes, Reuters reported.

Lagging demand from major buyers also added to the higher stockpiles. Malaysia exported 1.24 million tonnes of palm oil products in March, down 8 percent from a month earlier and weaker than forecasts for 1.30 million tonnes of shipments.

Malaysian Airline System Bhd (MAS) has instructed its solicitors to lodge an appeal to the Competition Appeal Tribunal against the finding of infringement maintained by the Malaysia Competition Commission (MyCC).

In a statement to Bursa Malaysia, the national carrier said today it received a notice of finding of infringement from MyCC that maintains its decision in finding of infringement and the fine of RM10 million.

AirAsia Bhd, which is also facing similar situation, said it is also appealing against MyCC decision.

On September 6 last year, the MyCC ruled MAS and AirAsia Bhd’s 2011 collaboration agreement as violating the Competition Act 2010 and fined each airline RM10 million.

My E.G. Services Bhd (MyEG) may be in focus after The Royal Malaysian Customs clarified the role of My MyEG in relation to the goods and services tax (GST) effective April 2015.

“The government did not elect MyEG to collect the goods and services tax on behalf of the government,” said Datuk Sri Khazali Ahmad, director-general of customs, in a statement.

Khazali explained that MyEG will only receive remuneration if the implementation of the new system generates a year-on-year improvement in tax contribution of more than 14% from select sectors.

“The company will not receive any form of payment if the improvement in payment is below 14%.”

KLCC Real Estate Investment Trust (KLCC REIT) announced that the Securities Commission Malaysia has approved the establishment of its sukuk murabahah programmes, with value up to RM3 billion.

The programmes comprise an Islamic medium term notes programme and Islamic commercial papers programme, with tenure of 30 years and seven years respectively from the date of first issuance.

Both programmes have a combined limit of RM3.0 billion in nominal value, with a sub-limit of RM500.0 million for the Islamic commercial papers programme.

“The proceeds shall be utilised for Shariah-compliant purposes by the issuer and KLCC REIT to finance, amongst others, redemption and/or payment of existing and future financings, capital expenditure,  acquisitions and working capital requirements.”

Perisai Petroleum Teknologi Bhd has successfully completed a private placement, which raised proceeds of RM165.9 million.

Managing Director Zainol Izzet Mohamed Ishak said the funds raised in the exercise will be used to repay borrowings, capital investments, as well as working capital for the company.

The placement, at RM1.53 per share, was oversubscribed.

Smartag Solutions Bhd announced that it has entered into a partnership with Ningxia Salimy Muslim Commodity Trading Co. Ltd to develop China International Halal Online Trade and Traceability Ecosystem.

“The partnership agreement provides a good platform for Smartag to commercialise its traceability on an international level whereby the market potential is huge.

The agreement is expected to contribute positively to the future earnings of the company,” said Smartag in its filing with Bursa Malaysia.

Smartag said this partnership will provide a platform to allow companies from all over the world to display halal food, Muslim supplies in international trade.

Ningxia is the sole Muslim province in China. Its population is 6.4 million with Muslims accounting for 36% of the people. In 2013, the total trade of Ningxia rose 45% to US$3.22 billion.

Written by Ho Wah Foon of theedgemalaysia.com