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Friday, December 17, 2010

Stocks to watch: Sozo, MTD Cap, Loh & Loh, AirAsia (Edge)

Stocks which could see trading interest on Friday, Dec 17 include Sozo Global Ltd, MTD CAPITAL BHD [], Loh & Loh and AIRASIA BHD [] following fresh corporate developments.

Sozo, a China-based company which manufactures ready-to-serve food, will be listed on the Main Market. Its offer price is 80 sen while RHB Research Institute has accorded a fair value of 95 sen.

RHB Research said it derived a fair value of 95 sen a share after applying a FY11 target of 4.0 times PER, which is a 10% discount to the weighted average FY11 target PER of the three listed China based companies on Bursa Malaysia.

“We believe it is more relevant to benchmark Sozo against its China listed peers in the KLSE than the Malaysian peers given the large discount usually applied to China listings in Malaysia, irrespective of its business model,” it said.

MTD Capital, Malaysia's second largest highway operator and owner, has obtained the go-ahead from the Philippines Toll Regulatory Board (TRB) to raise toll rate on the South Luzon Expressway (SLEX) effective Jan 1, 2011.

Its share price rose to a fresh all-time high of RM8.51 on Thursday as it stands to gain RM150 million annually from a proposed Philippine toll hike in South Luzon Expressway.

The year low was RM2.75 on Jan 21.

TENAGA NASIONAL BHD [] signed three agreements with various companies for jobs worth RM1.16 billion for the 250MW Hulu Terengganu hydroproject yesterday.

Of the contracts, Loh & Loh CONSTRUCTION [] Sdn Bhd and Sinohydro Corp Ltd JV sealed a RM828.3 million contract for the main civil works including building two dams, a water transfer tunnel and an underground power house.

AirAsia Bhd is stepping its presence in the Philippines, this time via the setting of a joint venture with several Filipino parties to establish a low cost airline there.

AirAsia said the JV will leverage on AirAsia’s strength to forge into markets in China (with Macau and Hong Kong), Taiwan, Korea, Japan as well as Singapore.

Bursa Malaysia Securities Bhd has served a court order on GOLDEN PLUS HOLDINGS BHD [] (GPlus), directing it to appoint a special auditor to review the group’s affairs from January 2006 to May 2010.

Bursa Securities had served a sealed court order granted by the High Court of Kuala Lumpur directing GPlus to appoint PriceWaterhouseCoopers Advisory Services Sdn Bhd (PWC) as the special auditor.

The Special Auditor will undertake to review the affairs of GPlus and its subsidiary companies for the period from January 2006 to May 2010.

MAA HOLDINGS BHD [] (MAAH) has received Bank Negara Malaysia’s approval for it to hold early talks with Zurich Insurance Company over possible sale of stake in its unit Malaysian Assurance Alliance Bhd (MAA).

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