Saturday, May 28, 2011

#Stocks to watch:* Sime, IJM, Alam Maritim, Ta Ann, Kulim

KUALA LUMPUR: The market could trade sideways on Monday, May 30 due to the lack of impressive earnings growth late last week, analysts said.

With the corporate season coming to an end on May 31, with Maxis Bhd and Axiata Group Bhd among the remaining heavyweights to announce the results, the market would need more stimuli to spur buying interest.

Stocks which could see trading interest would be SIME DARBY BHD [], IJM Corp, ALAM MARITIM RESOURCES BHD [], TA ANN HOLDINGS BHD [] and Kulim (Malaysia) Bhd. All the companies reported their results on Friday.

Sime Darby posted net profit of RM820.12 million in the third quarter ended March 31, 2011 compared with net loss of RM308.63 million a year ago. Revenue increased by 39.8pct to RM10.59 billion compared with RM7.57 billion. Earnings per share were 13.66 sen.

IJM Corp swung into the red in the fourth quarter ended March 31, 2011 with net loss of RM20.19 million versus a net profit of RM111.04 million a year ago due to its overseas operations. The losses were expected by the market as it would have to make provisions and losses in its international operations.

Its operating profit before tax fell by 53.9% to RM75 million compared to RM163 million a year ago 'following the provision made against contractual claims, recovery of receivables and project losses in some of the group's overseas projects'.

Its revenue rose 20.9% to RM1.047 billion from RM866.46 million mainly due to the CONSTRUCTION [], property, industry and infrastructure divisions. It announced an interim dividend of 7.0 sen a share

Land & General posted losses of RM3.22 million in the fourth quarter ended March 31, 2011 compared'' with net profit of RM12.91 million a year ago mainly due to losses in quoted investments.

'The loss for the current quarter arose mainly due to'' fair value loss of RM3.5 million recognised on its quoted investments, net interest expenses of RM1.1 million recognised from FRS 139 implementation, and share of losses from its jointly controlled entities of RM1.7 million,' it said.

Alam Maritim posted net losses of RM7.38 million on weaker performance by it offshore support vessels segment. Net loss for 1Q ended March 31, 2011 was a stark contrast of RM20.51 million a year ago.

Revenue fell 48% to RM34.68 million from RM66.87 million. Loss per share was 0.9 sen compared with earnings per share of 4.0 sen.

On a more'' upbeat note, Ta Ann said higher overall selling prices for timber products and better performance for the PLANTATION []s business pushed Ta Ann Holdings Bhd's first quarter earnings up by 232% to RM26.56 million from RM7.89 million a year ago.

Revenue rose 10.3% to RM181.44 million from RM179.93 million while earnings per share were 10.32 sen compared with 3.10 sen.

Kulim's earnings jumped 105% to RM127.10 million in the first quarter ended March 31, 2011 (1QFY11) from RM61.89 million a year ago.

Its revenue climbed 34% to RM1.657 billion from RM1.234 billion while earnings per share were 10.12 sen compared with 16.40 sen a year ago.

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