Stock watch - Malaysia

Resorts World Berhad

Resorts World has fallen from investors' radar since the drastic market drop on March 10. The share price currently hovers around RM3.40. A bank-backed brokerage suggested in a recent report that parent Genting Bhd should privatise it or Resorts should make a capital repayment, given its large coffers. At some point, it said, Genting was likely to privatise Resorts to leverage on the latter's strong balance sheet and achieve the group's ambition to expand its casino franchise.

Success Transformers Corp Bhd

SHARES of Success Transformers Corp Bhd have surged in recent weeks after it completed the purchase of the remaining 40% in Seremban Engineering Sdn Bhd (SESB).

In just two weeks, the share price appreciated by close to 11%.

The consolidation of SESB comes with a profit guarantee of RM7.5mil and RM9.0mil for financial years (FY) ending Dec 31, 2008 and 2009, respectively.

OSK expected this to boost Success' net earnings by 12.1% and 17.7% for FY08 and FY09.

Tan Chong Motor

The franchise holder of Nissan cars in Malaysia is expected to announce better earnings when it releases its results end of this month.

The anticipated stronger performance is fuelled by positive response to its new models, Latio and Grand Livina.

According to a local brokerage, Tan Chong has received about 11,000 bookings for Grand Livina since its launch in December.

Additionally, its Serendah plant, which was completed last year, would allow the carmaker to produce more cars. Tan Chong is expected to introduce a new model, Sylphy, in June, which will compete against Honda Civic and Toyota Altis.

Source