It would be more instructive if the Co could give us guidance on how this RM580m contract will be translated to pre-tax profits for FY2017 and onwards. Otherwise, it is just a pretty figure at the topline.
KUALA LUMPUR: Permodalan Nasional Bhd (PNB), the largest fund-management company in the country, is cautiously optimistic about its outlook for the stock market next year amid external headwinds. The firm yesterday declared lower payouts for its flagship funds, as stocks on Bursa Malaysia head into their third consecutive year of losses on weak corporate earnings growth and a heavy sell-off by foreign investors. Group chairman Tan Sri Abdul Wahid Omar, however, expects a recovery in the price of crude oil and a pick-up in economic growth to lift earnings and boost sentiment in the local stock market next year. He said the swirling talk about the timing of the next general election could inject some excitement into the stock market in 2017. “Market speculation is that there is a possibility of 2017 being an election year. As you know, elections tend to spur greater volatility in the stock market. So, this could provide some enhanced trading opportunities,” Wahid told a press briefing here yesterday.
With value emerging from the recent market selldown, Wahid said there could potentially be some merger and acquisition (M&A) deals that could spur trading activities. “We expect some potential M&A plays due to attractive valuations and that could provide some market excitement,” he said. On the downside risk, Wahid said, “There is no guarantee in the world, but the good thing about Malaysia is that we do have very strong institutional support that could provide some cushion to any potential downside.” At present, overseas investment accounts for only 2% of PNB’s total portfolio, while the remainder 98% comprises of domestic investment.
SHARES in HeiTech Padu Bhd (fundamental: 0.55/3, valuation: 1.5/3) triggered our momentum algorithm yesterday as the counter closed five sen or 5.81% higher at 91 sen.
Last month, the systems integration provider signed an RM41.9 million contract with Permodalan Nasional Bhd (PNB) to provide managed wide area network infrastructure for PNB and Amanah Saham Nasional Bhd.
The supply, installation, commissioning, operation and maintenance contract is for a period of five years until Aug 31, 2021, according to the group. The deal is expected to have a positive effect on its earnings per share but will have no material effect on its dividend policy, gearing, share capital and the substantial shareholders’ shareholdings.
The stock saw some 1.13 million shares traded compared with its 200-day average of just 61,941 shares. It currently has a market capitalisation of RM94.1 million based on its last traded price.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Wzhai3932
132 posts
Posted by Wzhai3932 > 2015-12-31 07:45 | Report Abuse
Buy got a big frm tnb silent only
N