Opcom: Mesdaq-listed Opcom has under-performed the Composite Index (CI) by 25% since late April on sustained selling pressure on technology-related stocks. Analysts, however, see the current downtrend as an opportunity to accumulate as the stock is currently trading at a single-digit multiple against its projected earnings per share of 15 sen for the year ending March 31, 2005. Meanwhile, Opcom, which dominates the local fibre optic cables market with a 50% share, is also planning to offer full-fledged broadband services to the local and international market as part of its strategy to broaden its income stream. OPCOM : [Stock Watch] [News]
KNM: Oil & gas process equipment maker KNM’s plans to expand manufacturing capacity by 60% to 46,500 tonnes by the end of next year gave its stock price a major boost in July, which in turn helped propel the counter to outperform the CI by 40% during the three months under review. Analysts said the stock’s current valuation is attractive based on next year’s earnings per share projection of between 48 sen and 58 sen. They said the company's current order book of RM250mil is likely to sustain it until the third quarter of 2005. Also, news that the company is planning a manufacturing plant in Indonesia next year could further enhance future earnings. KNM : [Stock Watch] [News]
Southern Bank: Southern Bank Bhd's share price has underperformed the broader market by 10% in the past three months, as the stock dipped 15.3% against the CI's 4.3% drop on concerns surrounding a potential share overhang following the completion of its bumiputra share sale exercise. The new shares accounted for 19.4% of the group's enlarged share capital of 1.4 billion shares. Analysts said, however, that with the bulk of new shares taken up by the bank's existing shareholders, the potential overhang could be less serious than anticipated. They said the market would need some time to digest Southern Bank’s declining return on equity given its enlarged capital base. SBANK : [Stock Watch] [News]
Apex Healthcare: Apex Healthcare's share price has outperformed the main index by 4% since late April but trading volume had remained subdued throughout the three-month period despite several positive corporate developments. Recently, the company's announcement of plans to dispose of its retail unit to rival Watson Personal Care Stores Sdn Bhd for RM14mil and concentrate on its core manufacturing and distribution businesses received warm response from analysts. It had said earlier that it planned to increase export sales and expand its product range to further diversify its income base. AHEALTH : [Stock Watch] [News]
Sapura Motors: Sporadic buying interest early this month provided a short term boost to this stock but the lack of follow-through support saw Sapura Motors' share price underperforming the CI by 13% over the period under review. Dealers said the auto parts maker, which derives some 80% of its earnings from contracts with car manufacturers like Proton and Perodua, had been hit by slower sales volume. Meanwhile, Sapura Motors has obtained shareholders’ approval to diversify into oil and gas related manufacturing activities, which it said would cushion any earnings shortfall. SMOTORS : [Stock Watch] [News]
OPCOM : [Stock Watch] [News]
