Tasek Corp: Week 19 (7-11 May) Stock Picks Commentary

Stock Picks #5

Tasek Corporation Berhad (TASEK)

Two-week high : RM 9.39 (Up 72 sen – 8.3%)

“To recap last week on 1 May, Tasek Corp’s CEO Thing Sii Tien @ Yao Sik Tien mentioned that he expects decline in cement demand from private sector jobs this year to be compensated by Government mega projects.

Some of the more prominent Government mega projects include the RM30 billion Mass Rapid Transit (MRT), Iskandar development region in Johor, the Northern Corridor Economic Region, and also the East Coast Economic Region.

Market reacted positively on potential earnings boost from Government mega project to Tasek Corp, the fourth largest cement company in Malaysia with a 10% market share. TASEK stock rose 3.6% (31 sen) since 1 May to week’s highest RM 8.98 on 4 May and closed at RM 8.90 at the end of the week (7 May 2012).”

Click here for last week's commentary on Tasek Coporation

Market continues to react positively this week on the potential earnings boost from Government mega project, mainly the MRT line project.

Even more so when on 9 May, the Mass Rapid Transit Corporation (MRT Corp) announced that it has awarded four additional packages to construct MRT line at Sg Buloh, Kota Damansara, Petaling Jaya, Seremban Portal, Bandar Tun Hussein Onn and Taman Mesra

The award of tenders indicates that works are soon to commence and this could have a positive impact on the demand for cement in the near future.

TASEK stock price continued surge upwards gaining a total 8.3% or 72 sen May 1 to this week’s highest RM 9.39 on 9 May and closed at RM 9.26 at the end of the week.

Click Here for all latest posts on Tasek Corporation

Tasek Corp: Week 18 (30 April-4 May) Stock Picks Commentary

Stock Picks #4

Tasek Corporation Berhad (TASEK)

Week high : RM 8.98 (Up 31 sen – 3.6%)

On 1 May, Tasek Corp’s CEO Thing Sii Tien @ Yao Sik Tien mentioned that he expects decline in cement demand from private sector jobs this year to be compensated by Government mega projects.

Some of the more prominent Government mega projects include the RM30 billion Mass Rapid Transit (MRT), Iskandar development region in Johor, the Northern Corridor Economic Region, and also the East Coast Economic Region.

Market reacted positively on potential earnings boost from Government mega project to Tasek Corp, the fourth largest cement company in Malaysia with a 10% market share.

TASEK stock rose 3.6% (31 sen) since 1 May to week’s highest RM 8.98 on 4 May and closed at RM 8.90 at the end of this week.

Click Here for all latest posts on Tasek Corporation

Tasek Corp to benefit from Malaysian Government's mega projects but expects slower demand from private sector - CEO Thing Sii Tien @ Yao Sik Tien

(TASEK closing stock price yesterday (30.4.2012) was RM 8.67)

Tasek Corp Bhd, the fourth largest cement company in the country, sees lower cement demand from private sector jobs this year but expects the decline to be compensated by government projects.

For the past few years, demand from the private sector, which includes property developers, has been the main growth driver for Tasek Corp.

However, the company is seeing slowing signs of demand for cement from the private sector lately.

"So, mega projects from the government will definitely help the company and the industry, to compensate the decline from the private sector," said group chief executive officer Ting Sii Tien @ Yao Sik Tien.

Analysts are expecting demand to increase when the construction of the RM30 billion Mass Rapid Transit (MRT) project takes off this year. Other government projects that will help boost demand include the Iskandar development region in Johor, the Northern Corridor Economic Region, and also the East Coast Economic Region.

"Overall, we expect the indus-try to be generally stable this year."

Tasek Corp posted a 2.4 per cent growth in revenue at RM566.19 million for the full year ended December 31 2011.

Its full-year net profit was 33 per cent lower at RM103.16 million, compared with RM154.19 million in 2010. The higher profit in 2010 was mainly due to exceptional gains as a result of disposal of plantation and other properties.

For the first quarter ended March 31 2012, the company posted a net profit of RM24.89 million and a revenue of RM150.63 million, an improvement compared with the RM23.4 million net profit and RM126.39 million revenue during the same quarter a year ago.

"Overall, we remain cautiously optimistic for the remaining of the year," he said.

Tasek Corp is currently the fourth largest cement company in Malaysia with a market share of 10 per cent. It is behind Lafarge Malayan Cement Bhd (40 per cent), YTL Cement Bhd (29 per cent) and Cement Industries of Malaysia Bhd (17 per cent).

Source: www.btimes.com.my