Amcorp: A foreign equity research firm rated Arab-Malaysian Corp Bhd a “buy” at the current price level, with a 40% upside potential to its projected revised net asset value (RNAV) of RM1.39. However, it cautioned that in the nearer term, earnings disappointment was likely to keep Amcorp share price depressed. The research house believed the company would register a slight loss in the financial year ended March 31, 2003, due to provisions made for the property division. Looking forward, the stock is trading at just five times its forecasted FY04 earnings, the firm said.
CIMB: THE execution of the proposal to merge government-linked companies into bigger entities would see a stream of merger and acquisition (M&A) advisory work for investment bankers like CIMB. Analysts expected CIMB to secure some of the jobs. They added that the heightened M&A activities would also benefit CIMB shares as the counter was the only pure investment banking play in the market. Meanwhile, CIMB appears to be having a good year so far, given the strong activity in the bond market – a key earnings driver for the group – in the first three months.
Courts Mammoth: Courts Mammoth share price slumped to its all-time low of RM2.10 last Wednesday but recovered somewhat on Friday to close at RM2.21. Year to date, this furniture and electrical goods retailer’s share price was down 25% on concerns that the slowing consumer spending trend and tough operating environment may hit the group the hardest. Meanwhile, Courts continues to expand its outlet network to 72 stores as of May from 68 at the end of 2002. The group plans to open five or six new ones by the end of the year.
Lion Corp: WITH the long delayed restructuring completed, Lion Corp is set to roar again. The counter is no longer classified as PN4 from today. Sentiments appeared to be on the mend as the stock gained 12% last week. Last Wednesday it released its third-quarter results. Pre-tax profit for the quarter was RM44.9mil. Nine-month pre-tax profit to March 31, 2003, stood at RM66.8mil on revenue of RM1.36bil. The better performance was attributed to improved flat steel market condition and the waiver received from lenders.
Transmile: THIS air cargo operator is enjoying brisk business as manufacturers turn to it to transport time-sensitive goods previously carried by passenger aircraft. Load factor on Transmile’s flights after the SARS outbreak now averages between 60% and 70% full. Its China-bound aircraft with bigger capacity than previously are presently operating at full load. Also, the renewed charter contract with DHL will boost profits, going forward.