APFT, Quill Capita Trust, Petron, Takaso and Teo Seng Capital

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KUALA LUMPUR (March 17): Based on corporate announcements and newsflow today, stocks in focus tomorrow (Wednesday, March 18) could include: APFT Bhd, Quill Capita Trust, Petron Malaysia Refining & Marketing Bhd, Takaso Resources Bhd and Teo Seng Capital Bhd.

Flight training operator APFT Bhd (fundamental: 0.2; valuation: 0.9) is mulling the purchase of two turboprop aircraft, valued at US$6 million (RM22.17 million), which it intends to turn into air taxis.

APFT told Bursa Malaysia today that its wholly-owned subsidiary APFT Services Sdn Bhd (ASSB) has entered into a memorandum of understanding (MoU) with Hong Kong-incorporated Evektor Asia Pacific Ltd (EAP) to discuss the possible purchase.

APFT said the aircraft are both Evektor EV-55 Outback and equipped with twin Pratt & Whitney PT6A-21 turboprop engines, and that they come “together with all parts, items of equipment, instruments, components and accessories installed”.

The group said the jets will be used for air taxis and tourism connectivity services between the resort islands of Pangkor, Tioman, Redang, and Langkawi.

Quill Capita Trust (QCT) said it has fixed its private placement at RM1.20 per unit to raise gross proceeds of RM78 million, to partly finance its acquisition of Platinum Sentral from MRCB Sentral Properties Sdn Bhd.

In a filing with Bursa Malaysia, QCT (fundamental: 0.55; valuation: 3) said 65 million units — representing 16.66% of the approved fund size of 390.13 million — will be allocated to selected investors.

The group said the private placement price represents a discount of 1.86% or 2.27 sen to the five-day volume-weighted average market price (VWAMP) of RM1.2227, between March 9 and March 13.

Petron Malaysia Refining & Marketing Bhd’s investment in the country is expected to reach over US$1 billion (RM3.69 billion) in the next few years.

These will come via the continuous network expansion programmes and upgrades to its 88,000 barrel-per-day Port Dickson Refinery, the service station provider said in a statement today.

According to the subsidiary of Philippines-based Petron Corp, it has successfully completed the rebranding and upgrading programme for its extensive retail network nationwide.

It said more than 550 of its service stations, formerly Esso and Mobil, now carry Petron’s distinct red and blue colours, complete with upgraded facilities.

Takaso Resources Bhd’s proposed related party transaction (RPT) to diversify into the construction business, has been deemed “fair and reasonable” by its independent adviser DWA Advisory Sdn Bhd.

DWA Advisory is advising Takaso minority shareholders to vote in favour of the proposed RPT at the forthcoming extraordinary general meeting (EGM) on April 2.

In a circular filed by Takaso (fundamental: 1.25; valuation: 2.3) with Bursa Malaysia this evening, DWA Advisory said the proposed venture into construction was expected to contribute 25% or more to Takaso’s net profit in the future.

According to Rule 10.13(1) of Bursa Malaysia’s Listing Requirements, a listed issuer must obtain approval from shareholders, if the new business diversification is expected to impact 25% or more of its net assets, or contributes 25% or more to the net profit.

To recap, Takaso’s wholly-owned subsidiary Takaso Land Sdn Bhd had on Jan 12, 2015, received a letter of award from OCR Land Holdings Sdn Bhd to construct a 21-floor commercial building in Jalan Kuching, Kuala Lumpur, for RM37.44 million. Takaso expects the construction contract to contribute 9% to its gross profit margin.

Koperasi Permodalan FELDA Malaysia Bhd (Felda) has acquired one million shares or a 0.33% stake in Teo Seng Capital Bhd, a filing today with Bursa Malaysia revealed.

The share purchase, transacted on March 12, has increased Felda’s interest to 16 million shares or 5.33% stake in Teo Seng (fundamental: 1.9; valuation: 2.1).

Teo Seng, which makes animal feed and is involved in poultry farming, closed up 4 sen or 1.9% to RM2.10, giving it a market capitalisation of RM630 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuation.)