Trading ideas: UEM Sunrise, EcoWorld, Pelangi Publishing, Gagasan Nadi Cergas, Sunsuria


  • Analyst Reports
  • Monday, 05 Oct 2020

KUALA LUMPUR: Stocks to watch on Monday include UEM Sunrise Bhd, Eco World Development Group Bhd, Gagasan Nadi Cergas Bhd, Pelangi Publishing Group Bhd, Sunsuria Bhd and Icon Offshore Bhd, according to JF Apex Research.

UEM Sunrise and Eco World Development will be engaged in merger talk to create the largest property company in the country that will be controlled by Khazanah Nasional Bhd.

Construction companies having business exposures in Middle East are under investors’ radar after Burj Khalifa builder Arabtec Holding to close down and file for liquidation.

Earlier, few UAE companies have sought to extend debt maturities or reach agreements with their creditors in an out-of-court process amid sluggish crude oil prices and real estate crisis.

Pelangi Publishing’s executive chairman and managing director Datuk Sum Kown Cheek, wife Datin Lai See Chiung, Sum’s brother Datuk Sam Yuen and spouse are seeking to take the group private via a selective capital reduction and repayment exercise. Entitled investors will get a capital payment of RM25.03mil or 36.5 sen.

Gagasan Nadi Cergas has bagged another project in Serendah, Selangor with a gross development value (GDV) of up to RM374.9mil.

It signed a development rights agreement with Menteri Besar Inc (MBI) Selangor subsidiary Permodalan Negeri Selangor (PNSB).

Sunsuria has signed two agreements to develop high-rise residential and commercial projects in Kuala Lumpur for an estimated GDV of RM3.53bil.

It signed a conditional share subscription and shareholders agreement with Bangsar Hill Park Development Sdn Bhd (BHP Development), Suez Capital Sdn Bhd and Dasar Temasek Sdn Bhd, to acquire a 51% stake in property developer BHP Development for RM8.44mil.

Sunsuria will develop a 9.92 acre parcel of residential land along Lorong Maarof in Bangsar, with an estimated GDV of RM3.01bil.

Sime Darby Plantation expressed concerns over a possible ban of its products by the US Customs and Border Protection (CBP), given the US is seen as a growing market. Annual exports stand at RM20.8mil.

The group was responding to media reports identifying the palm oil giant as the next subject of a Withhold Release Order by the CBP, after products of FGV Holdings Bhd were prohibited from entering the US, following investigations into alleged use of forced labour.

Icon Offshore is buying the Perisai Pacific 1010 jack-up rig from Perisai Petroleum Technology Sdn Bhd (PPTB) for RM177mil.

The proposed acquisitions will be funded from the proceeds of the group’s rights issue with warrants and from new borrowings.

Meanwhile, US markets tumbled on Friday after President Trump and his wife tested positive for Covid-19 as technology counters led the decline.

Earlier, European stocks ended lower after Trump tested positive for the coronavirus.

“Following the lacklustre performance in Wall Street, the FBM KLCI could remain pressured with support at 1,475 points,” JF Apex said.

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