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Friday, November 11, 2011

Stocks to watch: CIH, Benalec, iDimension, Eversendai (Edge)

After the selldown in key regional markets on Thursday, investors are expected to stay cautious on Friday but there are a few bright spots still for Malaysian investors following the positive corporate news.

However, as for the heavy churning of penny stocks, which pushed the trading volume to more than 2.6 billion on Thursday, investors should be careful of a sharp pullback if the market continues to slide.

As for Thursday, the churning of the penny stocks has shifted from Emico, Harvest and Hibiscus to Sumatec, Iris, Patimas and SAAG. All these stocks have been under the radar screen for many months, especially Sumatec.

Among the bright spots are C.I. HOLDINGS BHD [], Benalec Holdings Bhd, Eversendai Corporation Bhd and integrated manufacturing software solutions provider iDimension Consolidated Bhd.

CIH is raising the cash distribution to shareholders to RM724.2 million or RM5.10 per share from the initial plan to distribute at least RM568 million or RM4 per share.

Benalec secured the go-ahead from the Johor government to undertake two reclamation projects along the state’s coastline.

The first reclamation project would be at the coast of Pengerang measuring 1,760 acres and the second project of the coast of Tanjung Piai measuring 3,485 acres. Trading resumes on Friday.

Eversendai posted net profit of RM26.44 million in the third quarter ended Sept 30, 2011 and was upbeat about the prospects, armed with a order book of more than RM1 billion.

Its revenue was RM254.41 million while earnings per share were 4.13 sen. For the nine-months ended Sept 30, its earnings were RM83.03 million on the back of RM720.41 million in revenue.

With the diverse and strong order book, the group was strategically positioned to perform well in FY 2011 and going forward, it said.

iDimension Consolidated Bhd will make its debut on the ACE Market on Friday. According to managing director and co-founder Daniel Boo, iDimension is a one-stop supplier of manufacturing software solutions, which makes it different from a normal software solutions provider.

At an offer price of 38 sen, the company aims to raise RM14.53 million via a public issue of 38.23 million new shares of 10 sen each.

It reported revenue of RM14.95 million in 2010 with a profit after tax of RM8.24 million. Based on its IPO price and enlarged issued and paid-up capital of 142 million shares, its market capitalisation upon listing will be RM53.96 million.

Based on this, its IPO price of 38 sen translates into a historical price-to-earnings ratio (PER) of 6.55 times.

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