FBMKLCI
1879.83 +0.63pts (+0.03%)
Volume 1.628b Value 2.344b
1) The KLCI closed just slightly above parity after
lingering in the negative territory thruout the session today as the US market
fell from its record high weighed by selected small cap and tech stocks. In the
regional market, bourses were mixed as the NIKKEI -0.75% closing in the red
despite a slight growth in GDP data, SHCOMP -1.12% fell as profit taking
amongst property stocks weighed the indices lower; while the HSI continued its
winning streak closing +0.66% above. In the local market, profit taking
blanketed amongst stocks that recorded solid gains this past week with the
heaviest loser being the Technology index losing -1.07% weighed down by GTRONIC
-3.02%, UNISEM -1.49%, GHLSYS -2.43%. Market breadth was negative thruout the
day as losers beat gainers by 443 : 308. Futures closed at 1876.5 (3pts
discount).
2) Heavyweights : DIGI -0.89% RM5.52, RHBCAP -3.06% RM8.22,
MAXIS -0.71% RM6.90, PETGAS +1.69% RM 24.00, SIME +0.94% RM9.60, IHH +1.74%
RM4.08, AMBANK +1.24% RM7.30, AXIATA +0.43% RM6.99
3) DBT : DESTINI 38.071mil @ RM0.3828 ( 5.273% PUC @ 39%
discount), ECOWLD 19.797mil @ RM4.40 (7.81% PUC @ 7.6% discount), BENALEC 5mil
@ RM1.04 (10.4% discount), TITIJYA 2mil @ RM2.09
4) Situational:-
FITTERS +5.00%
RM1.05 - Fitters Diversified has via its
unit Future NRG Sdn Bhd, entered into a memorandum of understanding with POIC
Trading to treat and convert palm oil waste into resources and energy. Via the
MoU, the two parties will work together to propagate the setting-up of
satellite palm biomass processing centres that will collect and treat palm oil
waste such as empty fruit bunches from clusters of neighbouring palm oil mills.
together, POIC and Future NRG will also conduct feasibility studies to set up
such processing centres through build-operate-transfer or build-operate-share
business models.
5) ENGTEX
3mths 03/14
Revenue -3.4% YOY RM260.2 Net-25.4% RM10.451m Eps
5.58sen
17.6% below consensus (f) RM50.7mil
Overall, the decrease in revenue and profit before tax as
compared to preceding year corresponding financial period was mainly due to
weak market demand of certain manufactured steel products and higher operating
cost of property development projects in Selayang.
Wholesale and distribution division
The wholesale and distribution division recorded a net
revenue of RM171.2 million in 2014, representing a growth of 5.6% as compared
to 2013, and contributed 65.8% of the Group's net revenue. The division recorded an increased segment
profit of RM15.2 million representing an increase of 53.3% as compared to 2013
and profit before tax of RM12.1 million representing an increase of 75.9% as
compared 2013. The division accounted
for 67.7% and 80.5% of the Group's segment profit and profit before tax
respectively. The increase in revenue and profit before tax was mainly due to
strong market demand for certain metal-related trading products.
Manufacturing division
The manufacturing division recorded a net revenue of
RM87.6 million in 2014 representing a negative growth of 12.1% as compared
2013, and contributed 33.7% of Group's net revenue. The division recorded a segment profit and
profit before tax of RM10.0 million and RM5.9 million respectively as compared
to RM15.2 million and RM11.1 million respectively in 2013. The division accounted for 44.7% and 39.1% of
the Group's segment profit and profit before tax respectively. The decline in revenue and profit before tax
was mainly due to weak market demand of certain manufactured steel products.
Property development division
The division recorded a net revenue of RM1.5 million as
compared to RM7.7 million registered in 2013 and contributed 0.6% of the
Group's net revenue. The revenue was mainly derived from ongoing property
development activity at Emerald Avenue mixed commercial development project in
Selayang. As of current financial
quarter, the division suffered a loss before tax of RM2.5 million as compared
to profit before tax of RM2.2 million recorded in 2013. The loss was mainly attributed to higher
operating cost of property development projects in Selayang.
Prospects for the year
The performance of the Group will continue to be affected
by factors such as the volatility in the international and domestic metal
prices, and the timely implementation of projects in the construction,
utilities and infrastructure and property development sectors. The property division expects to contribute
significantly from the completed and ongoing residential and commercial
development projects in Selayang. The construction sector is expected to
continue recording high growth, albeit at a more moderate pace. BUY on weakness
for its compelling growth story (water restructuring and pipe replacement in
Selangor and Pengerang RAPID, Johor) as well as undemanding annualized PE of
8.6x FY14.
6) Market: Focus to continue on situationals and
newsflow-driven sectorial play (e.g. water-related stocks) while the broad
market consolidates.
