Trading ideas: Guan Chong, Aeon Credit, Axiata, E&P and MyNews


  • Analyst Reports
  • Friday, 20 Dec 2019

KUALA LUMPUR: Stock to watch for on Friday include Guan Chong, Aeon Credit, Axiata, E&P and MyNews, says JF Apex research.

The research house said in its daily highlights report that these stocks announced recent corporate activity and earnings that may attract investor attention.

Guan Chong is buying Europe-based chocolate maker Schokinag Holding GMBH (SHG) for €29.93mil (RM137.84mil) as part of the group’s global expansion strategy.

The group said the proposed acquisition will enable it to expand its presence to Europe and position the group to target new growth opportunities in the world’s largest chocolate consuming market.

Aeon Credit’s 3QFY20 net profit fell 20% yoy despite revenue growing 15% y-o-y, following higher operating and funding costs.

Axiata’s units Axiata Investments (UK) Ltd and Ncell Private Ltd have been granted a provisional measure from an international Tribunal preventing the Nepalese government demanding Ncell to pay in NPR22.45bil (RM817.99mil) in outstanding capital gain tax (CGT).

E&O intends to raise up to RM1.5bil via a sukuk programme — unrated and with a tenure of 25 years — to finance the costs of land reclamation, infrastructure and development of its Seri Tanjung Pinang 2 (STP2A) development in Penang.

MyNews’ 4QFY19 net profit halved to RM3.18mil from RM6.06mil last year, owing to its new food processing centre still undergoing a gestational period amid revenue grew 27.74% y-o-y.

Puncak Niaga’s unit Puncak Niaga Management Services Sdn Bhd has received two bills of demand from the Royal Malaysian Customs Department for Goods and Services Tax payments amounting to RM5.27mil.

Meanwhile, US markets shrugged off news of President Donald Trump's impeachment to rise to all-time highs.

In Europe, stocks were mixed after interest rate decisions by the central banks of England and Sweden.

JF Apex expects the FBM KLCI to remains sideways below the resistance of 1,610 following the mixed performance in global equities overnight.

On Thursday, the index lost 3.1 points to 1,596.01.
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