Stocks to Watch: DRB-Hicom, KNM, Malaysian AE Models, MTD, Subur Tiasa (Edge)

Trading interest on Bursa Malaysia could perk up on Wednesday, Dec 22 in light of several corporate developments in the local scene as well as the firmer close at regional markets on Tuesday that gained on bargain hunting.

However, while investors gave a boost to the Japan, Hong Kong and China markets by snapping up battered stocks, the lower trading volume indicated caution ahead of the year-end holidays, according to Reuters.

Comments from a Chinese vice premier that China supports European Union efforts to calm global markets in the wake of Europe's debt crisis were enough to trigger a short-covering rally in holiday-thinned trade in Asia, it said.

Also, developments later on Tuesday could have some impact on the markets on Wednesday, as ratings agency Moody's Investors Services put Portugal on review for a possible downgrade, reinforcing worries that the eurozone's debt crisis would persist well into 2011.

Moody's said it may downgrade Portugal's A1 rating by one or two notches after a review, citing concerns about the country's weak growth prospects and high borrowing costs in the latest ratings-related jolt to an eurozone member, according to Reuters.

On Bursa Malaysia, among the stocks to watch on Wednesday are DRB-HICOM BHD [], KNM GROUP BHD [], MALAYSIAN AE MODELS HOLDINGS [] Bhd, MTD CAPITAL BHD [], SUBUR TIASA HOLDINGS BHD [].

DRB-Hicom inked a collaboration and license agreement with Volkswagen AG (VW) and Volkswagen Group Malaysia Sdn Bhd to collaborate in the assembly of VW vehicles in Malaysia.

Under the agreement, it would produce the locally-assembled Volkswagen Passat and Jetta models in its Pekan plant

KNM's wholly-owned subsidiary KNM Process Systems Sdn Bhd secured a contract worth £450 million (RM2.196 billion) to develop an 80MWe gross capacity biomass and waste recycling centre project in Peterborough, United Kingdom.

KNM said that the contract for the EnergyPark Peterborough was with Peterborough Renewable Energy Limited, and the duration was for four years from the commencement date.

Malaysian AE Models' 99.92% subsidiary PT AE Material Handling Systems and its consortium partners secured a contract worth US$33.8 million (RM104.78 million) for the design, CONSTRUCTION [] and remedying defects of the Kariangau 2 x 15 MW Coal Fired Steam Power Plant in Balikpapan, East Kalimantan, Indonesia.

Malaysian AE Models said on Tuesday that the contract was awarded by PT Kariangau Power.

MTD is eyeing engineering and infrastructure projects in Saudi Arabia via a joint venture (JV) company it intends to form in the Kingdom with ANC Holdings Pte Ltd.

MTD said it had entered into a JV and shareholders' agreement with ANC for the purpose of incorporation a JV company in Saudi Arabia. MTD will hold 51% of the JV while ANC will have the remaining 49%.

"The parties intend to utilise the JV Company to undertake engineering and construction of building and infrastructure projects in Saudi Arabia," it said.

Subur Tiasa's net profit for the first quarter ended Oct 31, 2010 rose 41.4% to RM10 million from RM7.07 million a year earlier, mainly due to higher profit derived from the forest operations as a result of increase in average selling price of logs.