YU NEH HUAT
EXCITING prospects are in store for this property developer which is currently making inroads into the Klang Valley after securing a dominant 65% to 70% property market share in Manjung district, Perak. OSK Research said the group’s property projects in Jalan Sultan Ismail, Jalan Perak, Mont'Kiara and Subang Jaya would boost Yu Neh Huat’s already impressive growth rate over the past three years. The research unit has forecast a 36.2% increase in Yu Neh Huat’s net profit to RM47.4mil for FY Dec 31, 2005 and expects it to maintain a minimum 10 sen dividend.
THIS ink supplies specialist stands out among its peers, thanks to its solid market positioning, efficient operation and abundant net cash. It enjoys a decent dividend yield of 1.5% and solid backing from Japan-based Toyo Ink. SBB Securities gives a “buy” recommendation on the stock with a 12-month target price of RM3.30 per share. It said Toyochem had aggressively gone into exports capitalising on Toyo Ink’s extensive global network. The group would also benefit from the anticipated resilient growth in the local printing ink industry.
DESPITE Scomi’s current premium valuation, a Singapore-based research house said positive developments within and outside Malaysia could provide excitement to this stock. The developments include the proposed takeover by its manufacturing unit of Bell & Order Bhd, which is generally involved in the machine business, and ongoing discussions with Singapore-based Chuan Hup Holdings Ltd on various options, including joint-venture opportunities. Scomi’s balance sheet in FY Dec 31, 2005, is expected to strengthen with a targeted net profit of RM80mil.
SBB Securities has downgraded Hiap Teck to a “hold” as the recent share price rally has limited its upside potential. Nevertheless, this water-related counter's outlook remains promising and it is set to benefit from Syarikat Bekalan Air Bhd's (Syabas) taking over water management in the Klang Valley. Syabas has allocated RM250mil to replace old and leaking pipes over the next two years. Hiap Teck’s new RM45mil electric resistant welding (ERW) steel pipe mill, which will be operational by year end, is set to increase the group’s annual production capacity to 700,000 tonnes next year.
ANALYSTS are positive on the prospects of Malaysia’s largest particleboard maker, particularly with its new plant in Pahang set to be operational this quarter. The plant will boost Mieco’s production capacity by 213.3% to 940,000 cu metres from 300,000 cu metres currently. Analysts also expect Mieco to expand its export market to North Africa and Middle East, apart from increasing its exports to China where there is a huge demand for chipboards. Analysts maintained their “buy” recommendation on Mieco with a 12-month target price of RM3.30 per share.