BAT: FOR a company that has to deal consistently with illegal or contraband cigarettes, BAT has done remarkably well. The largest cigarette manufacturer in Malaysia posted a significantly higher pre-tax profit of RM820mil for the 3rd quarter ended Sept 30, compared with RM708mil in the previous corresponding period. Shares of the company closed 50 sen higher last Friday at RM42.75. Analysts said improved performance was due to operational efficiencies, a reduction in brand expenditure and higher domestic volumes. Stock watch on BAT
KUB: ALTHOUGH KUB is a loss-making company, it recently got a shot in the arm after it was invited to join the consortium to manage the public transportation system in the Klang Valley. It had in the past several months been trimming some of its losing concerns. The government has taken over the assets of the Klang Valley public transportation and will lease them back to a master operator in a move to restructure the transportation system. The joint-venture company is owned by KUB, Nadicorp Holdings Sdn Bhd executive chairman Datuk Mohd Nadzmi Salleh and KL Infra- structure Group Bhd. Stock watch on KUB
KFC: CAN investors expect to see a trimmer KFC Holdings (M) Bhd with its no-nonsense approach to cut fat and dispose of its non-core business operations? Last week the company said it anticipated a 30% higher revenue for its 3rd quarter financial year ended Sept 30 as business had recovered to pre-SARS level. Another feather in the cap for KFCH is that its Pizza Hut chain had made a turnaround from recording losses. KFCH's pre-tax profit went down to RM24.9mil in the first half year ended June 30, compared with RM50.7mil during the same corresponding period last year, as a result of SARS. Stock watch on KFC
TNB: BUOYED by strong sales of electricity, Tenaga Nasional Bhd (TNB) recorded a 13.6% jump in pre-tax profit to RM1.71bil for the financial year ended Aug 31. Its turnover also shot up to RM16.5bil from RM15.3bil last year. For the current financial year ending Aug 31, 2004, OSK Research is projecting an electricity demand growth of 8.4% before easing marginally to 7.9% in the next financial year. Earnings growth for these two financial years, too, will be enhanced as operating margins are seen improving on the back of lower operating cost. Stock watch on TNB
Suiwah: RETAILING will continue to contribute steadily to Suiwah's in- come, but the growth of its revenue will mostly come from its flexible printed circuit boards (PCBs) division under its 51% owned Qdos Holdings Sdn Bhd. Should Qdos maintain its 50% contribution to Suiwah's pre-tax profits, the company's overall profit should show an improvement due to Qdos’ higher profit margin as compared to the retail division. According to UT Securities Sdn Bhd, Suiwah is expected to benefit from the upcycle in the electronics industry, given its location in electronics-driven Penang state. Stock watch on Suiwah
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