HUNZA Properties Bhd last week released its results for the second quarter ended Dec 31 which were above analysts’ expectations, spurring them to reiterate a strong buy on the counter. The 92.7% year-on-year jump in net profit to RM16.6mil was due to maiden contributions from its new developments, Gurney Paragon and Infinity, and improved contributions from key projects. Locked-in sales from Alila and Seputeh (its main developments), on-schedule construction progress and its ability to deliver quality international products should encourage future increments of prices of Hunza properties, moving forward.
WITH its focus on executing construction order book this year, Zecon Bhd
is gearing itself up for a strong turnaround in core profits in the financial year ending Dec 31, Kim Eng Research said. It said the construction division would be the firm's lead growth driver, generating RM253mil turnover for the period, compared with an average annual turnover of only about RM50mil in the past two years. The research outfit, which has upgraded its “call” on Zecon to a “buy”, said the counter had limited downside following the sharp decline in its share price and a more positive outlook for cash flow and earnings.
STANDARD and Poor's initiated a “buy” call on Deleum Bhd early this month, saying it expected the company to achieve a “relatively strong” three-year earnings per share compounded annual growth rate of 20.6%. This is backed by capacity expansion and its proposed acquisition of a substantial stake in valves supplier Penaga Dresser Sdn Bhd. Deleum's profitability is expected to improve as it moves up the value chain. There are also plans to extend its sales to new industries and provide more solutions.
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