Chin Well: ANALYSTS described this company, Asean's largest carbon steel fastener maker, as a hidden jewel with good potential. OSK Research said that expectation of a boom in Asean economies would be a fresh catalyst for Chin Well's future earnings growth. The company also has the potential to become a major supplier of specialised industrial steel fasteners to the Bakun dam and double-tracking rail project in Malaysia. The research house has recommended a “buy'' on the stock with a 12-month price target of RM4.96. Stock watch on Chin Well
BAT: BAT is riding high with its dominant market share of 68% and its record of paying generous dividends. The company is fundamentally backed by a strong cash position of RM308.6mil at Sept 30 and high dividend yield of more than 8%. Analysts said the 21% rise in tobacco tax under Budget 2004 and the subsequent increase in the price of cigarettes will not significantly affect BAT's margins. Although consumers now can sue tobacco companies in Malaysia, they believe it would be an uphill task as tobacco firms have a history of winning cases. Stock watch on BAT
Public Bank: OSK Research expects this anchor banking group's net profit to exceed the RM1bil mark next year. Going forward, the group's loan growth would come from consumer (residential mortgages and car loans) and loans to small- and medium-sized industries. The research house believes the banking group would further strengthen its presence in the hire-purchase market because up to now, no financial institution other than Public Finance can offer car loans of up to nine years. Public Bank's loan portfolio grew at an amazing rate of 14.5% to RM44.7bil in the first nine months this year. Stock watch on Public Bank
MISC: THE earnings prospects for this shipper look good. Kim Eng Research said the primary drivers of growth over the next two years would be capacity expansion in its liquefied natural gas business, firming up of freight rates, and the turnaround in its loss-making linear logistics business after experiencing two years of deep losses. Rising freight rates and some internal cost-cutting measures would result in MISC's newly acquired American Eagle Tankers bringing in significant earnings for FY2004 and FY2005. Stock watch on MISC
Sime Darby: THIS highly diversified conglomerate will add another power plant to its stable with the acquisition of a 51% interest in Singapore-based Island Power Holdings Pte Ltd, which is currently developing a 715-MW combined cycle gas turbine power plant on Jurong Island. Analysts say the group wants to increase its energy generating capacity from 543 to 2,000 MW over the next three years. It already has two power plants. The energy division was Sime Darby's fifth biggest profit contributor for the year ended June 30, accounting for about 14% of the RM1.2bil operating profit. Stock watch on Sime Darby
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Stock watch on Chin Well
