Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Wednesday, July 30, 2014

Zelan: Sources say it is expected to bag a rm250 million contract from ECER for the construction of a drawbridge connecting Muara North and Muara South in Kuala Terengannu. It is partnering an engineering company. They have a 70% and a 30% equity stake in the JV respectively.
AEON Credit: Non bank financial institution may consider making a bonus issue which will help to improve the stock’s liquidity.

It focus remains on enhancing its financial products for SMEs especially in the area of commercial vehicle and equipment financing. It will leverage its card member databases.

In 1QFY2015, it raked in rm51.28 million from its SME business, which contributed 1.3% to total financing receivables.

In addition, it is keen to introduce its E-Money card – a cashless shopping solution in Malaysia.

AEON Credit’s capital adequacy ratio stood at 18.9% (above BNM’s 16% minimum requirement) as at May 2014 post issuance of perpetual notes. The programme allows for an issuance of up to rm400 million of which the group has issued rm246 million.

Genting Bhd: Its big investment in Las Vegas may be facing a challenging gaming market with tough competition and possible shrinking interest.

Against such backdrop of a continued US gaming market slowdown, the success of Genting’s proposed Las Vegas casino would largely depend on its positioning among rivals in the city.

The gaming market there is already saturated, but if Genting could pull off a Chinese themed casino there, it would be able to win niche gamblers, especially those from China.

When completed, Genting’s proposed USD4 billion Asian themed resort in the Las Vegas Strip in Paradise would contribute 5% to 10% to the group’s revenue.

Construction of Phase 1 will begin in second half of 2014. The casino will start operating two or three tears later from 2014.

Friday, July 18, 2014

[#MASalert] - Malaysia Airlines has lost contact of flight MH17 operating from Amsterdam to Kuala Lumpur on 17 July 2014. The last known position was over Ukrainian airspace. For latest update, please follow our Twitter account @MAS.

Parts of MH17?
More News :

 Malaysian airliner 'shot down' Ukrainian rebels shot down a Malaysian jet carrying 295 people over eastern Ukraine near its border with Russia, a Ukrainian Interior Ministry official said. (AFP photo)

Thursday, July 17, 2014

It will be submitting its application to Bursa to regularize its PN17 status in Sept 2014 after its shareholders approved a proposed rights issue at an EGM to raise funds for its working capital requirements.

The proposed rights issue is expected to bring in proceeds ranging from rm15 million to rm21 million.

The premium office furniture manufacturer slipped into PN1 status when it defaulted on the repayments of its bank borrowings amounting to rm4.83 million.

The company had been making loss in its financial year ended June 30 2013, is on the road to recovery and a healthier financial performance can be expected for FY2014.

It is expecting its bank debts level with regard to bank debts to be less than rm5 million in FY2014.

For its third quarter ended March 31 2014 the company recorded a profit of rm605000 on the back of rm11.15 million in revenue.
More than 85% of its revenue is generated from export sales to SEA, the Middle East, Americas and India which is due to cash flow constraints and export markets value its high quality furniture better.

The company has secured contracts to provide furniture to several well known companies like PBB, Petronas Carigali Sdn Bhd and BASF Global.

The company is not planning to go upstream in India by setting up a manufacturing facility there in 2015.

Saturday, July 12, 2014

An ultra high purity gas and chemical delivery solutions provider, is ready to become a major EPCC contractor.

It had bagged a sizeable EPCC contract from BASF Petronas Chemicals Sdn Bhd for Package 1 of its rm1.6 billion aromas production facility in Gebeng, Kuantan. The job has given Kelington access to the chemical processing sector.

It has pinned its hopes on also securing Packages 2 and 3, which are larger contracts.

The group has also set its sights on EPCC works in the RAPID project.

It is poised to report strong earnings in FY2014 having benefited from a recovery in its core semiconductor business and diversification efforts over the last two years (2012-2013), which saw it increasing its exposure to the healthcare, oil and gas and palm oil industries.

Following the diversification, it can now better respond to market fluctuations in the semiconductor industry.

The group went through hard times in FY2012 and Fy2013 when the semiconductor industry slowed, causing its order book to drop and its earnings to dip.

It diversified into other industries while still maintaining the semiconductor market as one of its main contributors.

KGB’s existing relationship with IHC to land more projects as the healthcare service provider has another two hospital projects in Malaysia in KLCC and Iskandar Malaysia.

It had secured a LOI for the hospital project in KLCC worth rm77 million.

The group is also intent on making renewable energy a major source of profit in the long term. It has set up a subsidiary in Papua New Guinea to provide RE services as solar which has also similar plans in Indonesia.

Its order book stood at rm188 million.

KGB is 47% owned by Palace Star Sdn Bhd. The remaining 40% is owned by others include LTH with a 12.36% stake and Sun Lead International Ltd with a 9.19%.

Wednesday, July 2, 2014

ATTENTION: Road collapsed (sinkhole) at the traffic light junction in front of Berjaya Times Square a few minutes ago.

Road collapsed near Jalan Imbi due to MRT tunnel construction. (MalaysiaKini)

Malaysia Boleh?

Please drive safely.
More images of the collapsed road near Berjaya Times Square.

The market decline last week was not an indication of selling pressure. Rather it was a correction of the uptrend because the KLCI is still above the short term 30 day MA. The index is now (01 July 2014) near the short term MA of 1876 points and the uptrend line support level.

Momentum indicators such as the RSI and Momentum Oscillator are showing signs of weakness after gaining strength two weeks ago. Nevertheless, the indicators are still above the mid levels which indicate that the momentum is still bullish.

The MACD indicator crossed below its nine day MA trigger line after climbing above it two weeks ago. Furthermore, the KLCI has pulled back the middle band of the Bollinger Bands after trading above the top band two weeks ago.

Technically the KLCI is still in bullish trend but the pull back last week caused the bullish momentum to weaken. The index is now at the short term uptrend support levels and therefore a rebound is expected. A rebound is likely to happen as the ringgit is expected to appreciate against the weakening USD.

The index may test the target of 1910 points as long as it stays above the support level of 1880 points. Now that the index is at the support level, expect a rebound. Further decline however may cause the market to move further into correction and next support level is at 1850 – 1860 points.

Tuesday, July 1, 2014

It had entered into a MOU with intelligent Fence Sdn Bhd to bid for a project to build and operate an electric security fence along Malaysia Thai border.

It has also ventured into the construction , property development and building material industries as well.

In Jan 2014, it acquired a 60% stake in SPAZ Sdn Bhd for rm3 million to make inroads into the construction sector. It had bagged a road construction project in Kelantan worth rm20.3 million.

It has also 500 acres in Sungai Long, Cheras with an estimated GDV of rm3 billion waiting to be developed.

The company had partnered two of China’s largest construction companies – Sinohydro Corp Ltd and Shanghai Construction Group Co Ltd – to bid for the 118 storey Warisan Merdeka.

SPZA has been in the construction for more than 20 years and has projects in hand that are worth rm350 million.

On June 2014, it had entered into a MOU with SPAZ, Sinohydro and Shanghai Construction to bid for the construction of Warisan Merdeka.

The pre qualified parties for the rm3 billion project are expected to be announced as early as July 2014. The tower is due for completion in 2018.

Seacera is bidding for the super structure of the project, not all of it, which is estimated to cost about rm1 billion to rm1.5 billion. The four parties will forms a JV or consortium if they get past the pre qualification stage.

International players will hold a dominant stake of 60% in the project while the local contractors will hold 40%.

In terms of funding of the mega projects, Seacera will not have a problem because it had completed two private placements and a rights issue.

Seacera is also looking at making property development a major part of its business, seeing that has a total of 570 acres in Cheras, Perak and Melaka.

Seacera bought the 250 acres in 2007. The value of the tract had doubled since Seacera had bought it. Once this development begins, expect a contribution of about rm300 million per annum for the next 10 years.

The group aims to be a big property developer.

Seacera has proposed to buy a 37 acre tract in Sri Alai, Meleka for m32.7 million and has 33 acre tract in Kamunting, Perak, where it plans to relocate its tile operation from Selayang.

On the company building material division, its tile business will remain the chief contributor to earnings. It had invested rm15 million in capex.

Its CEO sees Seacera becoming a property cum construction company in the next five years from 2014.