U-Li: THE country's largest cable support system (CSS) player with a 30% market share has just signed an agreement with the Sime Darby group to be its sole CSS distributor over the next five years. The deal could easily add more than RM100mil turnover to U-Li over the next five years. Furthermore, U-Li could be an indirect play on the current oil and gas, and water themes as its earnings growth is expected to be driven by the power generation, water and oil and gas sectors which currently contribute 65% of its revenue. U-Li has also been invited by US-based engineering giant Bechtel Group to help the latter’s quest in rebuilding Iraq.
Stock watch on U-Li MIDF: MALAYSIAN Industrial Development Finance Bhd (MIDF) has received approval from Bank Negara to start negotiations with Utama Banking Group to purchase the equity of Utama Merchant Bank Bhd. However, the go-ahead is valid up to Oct 30. The acquisition of Utama Merchant, if successful, will complete MIDF's bid to become a full-fledged investment bank. In March, MIDF completed its merger with financial group Amanah Capital Partners, and took the latter private. It has since streamlined its operations into four core sectors, namely capital markets and securities, asset management, development financing and property-related business.
Stock watch on MIDF Atis: ATIS Corp Bhd is a favourite industrial-based stock for many fund managers. The machinery and equipment specialist is expected to benefit from the increasing use of automation and the anticipated recovery in the manufacturing sector. Its share price has risen steadily since January. The counter has slightly more than doubled from the Jan 2 price of RM1.58. Atis has proposed to undertake an RM80mil commercial papers/ medium term notes issuance programme for the repayment of bank borrowings, working capital and future investments, and company acquisitions.
Stock watch on Atis MPI: WORLDWIDE semiconductor sales have been rising and the global technology sector seems to be on the road to recovery. As the forerunner in the local technology sector in terms of technology and capital utilisation, Malaysia Pacific Industries Bhd is expected to benefit most from it. The chipmaker has returned to the black for the quarter ended June 2003 thanks to the global economic recovery that led to bigger spending on IT. The stock has been actively traded for the past many weeks and its share price rose close to 8% since a month ago.
Stock watch on MPI TRC Synergy: THE mid-sized construction company has pretty good track record and earnings. Its large order book of over RM1bil will provide the group with consistent earnings until 2005. Recently, it won contracts of an RM51.2mil project for the construction of palm oil bulking facilities in Bintulu Port and an RM225.9mil property development project in Sutera Harbour, Kota Kinabalu. It has also been invited to submit a detailed proposal for the privatised construction of the Police District Headquarters to be located in Kuala Lumpur.
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