Benalec Holdings, MAHB, IGB REIT, K-Star Sports, GHL Systems, GPA Holdings, Old Town, and Caring Pharmacy

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KUALA LUMPUR (Jan 27): Based on announcements and newsflow today, companies that may be in focus tomorrow (Wednesday, Jan 28) could include the following: Benalec Holdings Bhd, Malaysia Airports Holdings Bhd (MAHB), IGB REIT, K-Star Sports Ltd, GHL Systems Bhd, GPA Holdings Bhd, Old Town Bhd, Bhd and Caring Pharmacy Group Bhd.

Benalec Holdings Bhd (fundamental: 1.65; valuation: 1.2)  has obtained approval from Department of Environment (DoE) for its reclamation work under Tanjung Piai Integrated Petroleum & Petrochemical Hub project.

The Detailed Environment Impact Assessment Study (DEIA) submitted jointly by its 70%-owned subsidiaries Spektrum Kukuh Sdn Bhd and State Secretary, Johor (Inc), had on Jan 23, been officially approved by DoE.

With this approval, Benalec said it is now targeting to commence the project’s phase one works in February.

The Tanjung Piai project is located off Tanjung Piai, southern Johor, close to Jurong Island, Singapore; and will be built on reclaimed land, measuring over 3,485 acres.

Benalec share price went up six sen or 8.3% at 78 sen today.

Malaysia Airports Holdings Bhd (fundamental:0.5 ; valuation:0.6) anticipates an EBITDA of RM1.52 billion for FY2015 ending Dec 31, with passenger traffic growing 3% to 85.8 million movements.

For comparison, MAHB had registered EBITDA of RM899.66 million for FY2013, a drop of 3.24% from RM929.74 million in FY2012, according to announcements with Bursa Malaysia.

The increase in EBITDA will also be complemented by the impact of full year retail and commercial operations at klia2, along with higher passenger movements, said MAHB.

The airport operator noted there is room for further optimism for 2015, being the Malaysia Year of Festivals campaign, as well as the return of British Airways to Malaysia.

MAHB share price shed 1.64% or 12 sen at RM7.18 today.

IGB Real Estate Investment Trust (REIT) recorded a total distribution per unit of (DPU) of 7.79 sen for the financial year ended Dec 31, 2014, an increase of 10.7% from 7.04 sen in FY13.

The total DPU in FY14 represented a yield of 5.37%, based on the unit’s closing price of RM1.31 today.
On prospects, IGB REIT expects 2015 to be a challenging year. Hence it is “cautiously optimistic” that its financial performance for the year ending Dec 31, 2015, would be “satisfactory”.

IGB REIT’s shares closed one sen or 0.76% lower at RM1.31 today.  

K-Star Sports Ltd (fundamental: 1.65; valuation: 1.2) expects to make a turnaround in 2017, as the sports footwear manufacturer expands its sales points and distributorship, to raise market share.

The company foresees consolidation in China's manufacturing sector, hence oversupply in the footwear industry is expected to ease — with a 5% to 10% growth in K-Star's revenue this financial year ending Dec 31, 2015 (FY15).

K-Star shares has not been traded since last Friday (Jan 23). The stock was last transacted last Thursday (Jan 22) at 12 sen, for a market capitalisation of RM32 million.

GHL Systems Bhd (fundamental: 1.40; valuation: 0.30) has launched its payment facilitator (PF) and payment service provider (PSP) initiative in Malaysia, with an initial target to acquire 3,000 to 4,000 merchants in 2015.

The group said its wholly-owned subsidiaries GHL Cardpay Sdn Bhd and GHL Epayments Sdn Bhd, have each entered into an agreement with Global Payments, in which GHL subsidiaries will act as a payment facilitator and payment service provider to the latter.

The PF/PSP agreement with Global Payments Malaysia will allow GHL to directly contract with small merchants for credit card payment services.

GHL Systems share price closed at 76.5 sen today, one sen or 1.29% lower from the previous day’s closing.

GPA Holdings Bhd (fundamental: 0.95; valuation: 1.2) plans to raise up to RM19.6 million, by issuing 196.1 million renounceable rights shares on the basis of one rights share for every four existing shares.

It also proposed to issue 490.24 million free warrants on the basis of five warrants for every rights share subscribed, to sweeten the cash call.

The rationale for the proposed rights issue with warrants include cost savings, as it will be able to raise funds without incurring interest costs, compared to bank borrowings or the issuance of debt instruments.

GPA’s counter closed unchanged today at 9.5 sen.

Old Town Logistics Sdn Bhd, a subsidiary of Old Town Bhd (fundamental: 3; valuation: 2.1), will acquire a 51% stake in April Eight (China) Ltd (AEC) from Join Dream Group Ltd for HK$3 million (RM1.4 million) — a step taken to diversify into central kitchen business in China.

Old Town said it had signed a sale and purchase agreement (SPA) today with Join Dream Group and its director Lai Sui Hong, to acquire 5,100 ordinary shares in AEC.

Once the transaction is completed, which will be conducted from internally-generated funds, AEC will be an indirect subsidiary of Old Town Group. Bhd, a closed ended fund saw its net profit falling 13.2% to RM4.91 million in the second quarter ended Nov 30, 2014 (2QFY15), from a year earlier, as it recorded lower dividend income and smaller gain on disposal of investment.

Revenue for the quarter was also lower by 7.3% to RM7.12 million, from RM7.68 million previously.

Meanwhile, for the first six months ended Nov 30, 2014 (1HFY15),’s net profit increased 3.21% to RM7.08 million, from a year ago. Revenue however, recorded a decline of nearly 4% to RM10.65 million, against the previous year’s RM11.08 million.

Caring Pharmacy Group Bhd’s  (fundamental: 2.05; valuation: 0.3) net profit for the second quarter ended Nov 30, 2014, rose 14.8% to RM2.09 million, from RM1.82 million a year ago, mainly due to lower taxation.

Quarterly revenue grew 5.4% to RM89.01 million, from RM84.45 million previously. Caring said the higher revenue was mainly contributed by 12 new outlets which commenced operations in the second half of FY2014, and four new outlets that open in the first half of FY2015.

The group remains confident that it will continue to perform profitably in the next quarter.

Caring share price dropped one sen or 0.8% lower, to RM1.19 today.

(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 valuations.)