KUALA LUMPUR (July 16): Based on corporate announcements and news flow today, the companies that may be in focus next Monday (July 20) could be the following: CMMT, See Hup, Ibraco, BCB, Berjaya Corp and Halex.
CapitaMalls Malaysia Trust (CMMT) second financial quarter ended June 30, 2015 (2QFY15) recorded a distributable income of RM38.78 million, down 1.19% on-year from RM39.25 million a year ago.
Distribution per unit (DPU) thus fell 1.36% to 2.18 sen in 2QFY15 from 2.21 sen in the previous corresponding quarter.
CMMT’s net property income stood at RM52.4 million for 2QFY15, up 2.4% from the RM51.2 million for the same period last year.
This, it said, was on the back of the full quarter contribution from East Coast Mall which completed its two-year asset enhancement programme at end-2014, as well as higher rental reversions from many new and renewed leases.
Its net profit for the quarter stood at RM88.63 million, down 15.5% from 2QFY14’s RM104.88 million, while revenue was at RM79.62 million, up a marginal 1.79% from RM78.22 million previously.
In a filing to Bursa Malaysia today, CMMT (fundamental: 1.8; valuation: 1.65) said its performance was dragged by an 11.1% increase in finance costs for the quarter, which is mainly due to additional revolving credit facilities being drawn down for East Coast Mall (ECM)’s asset enhancement works and other capital expenditure.
It was also impacted by the higher interest rate after the overnight policy rate hike in July 2014 and the interest rate re-fixing exercise for part of its existing secured term loans, which was completed at a competitive rate for a tenure of three years.
For the cumulative six months (1HFY15), its DPU stood at 4.43 sen, down 2.2% from 4.53 sen for 1HFY14, while its distributable income stood at RM78.81 million, down 2.05% from RM80.46 million in 1HFY14.
Its net profit for 1HFY15 stood at RM126.87 million, down 11.32% from RM143.07 million in 1HFY14; revenue was at RM160.6 million, up 2.12% from RM157.2 million.
See Hup Consolidated Bhd has entered into a share sale agreement (SSA) to acquire the entire equity interest in Mahajaya View Sdn Bhd, an oil packing company and the registered owner of a piece of vacant industrial land measuring 0.98ha in Penang, for RM5.34 million cash.
Upon completion of the proposed acquisition, Mahajaya will become a wholly-owned subsidiary of See Hup and See Hup will have a larger land space to serve its current operations and future expansion needs, according to See Hup’s filing with Bursa Malaysia today.
See Hup said it entered into the SSA today with Goh Siong Yean and Lim Sam Keow, for the acquisition of 2.5 million ordinary shares of RM1 each in Mahajaya.
The purchase consideration will be satisfied by internally generated funds.
Berjaya Corp Bhd (BCorp) announced today the resignation of Rayvin Tan Yeong Sheik as the executive director of the company, effective July 15.
According to a filing with Bursa Malaysia today, Tan’s resignation was because he is now based in Hong Kong to oversee the group’s operations in Hong Kong and China.
According to the latest annual report, he was appointed to the board of the company as an executive director on Sept 15, 2005.
Rayvin, 36, is the son of BCorp founder Tan Sri Vincent Tan and the brother of the chairman and chief executive of BCorp, Datuk Robin Tan.
Ibraco Bhd's shareholders have today approved the property developer's rights issue of 50.65 million new shares.
In a filing with Bursa Malaysia today, Ibraco (fundamental: 1.9, valuation: 2.4) said it has obtained the approval at the company's extraordinary general meeting in Kuching, Sarawak.
Ibraco's rights issue is on the basis of two rights shares for every five existing units held in the company. The ex-date for the exercise is this Wednesday (July 22).
KAF Investment Bank Bhd said the takeover offer for property developer BCB Bhd at RM1 a share was "not fair" and "not reasonable" and has recommended BCB’s shareholders to reject the offer.
In a circular to BCB (fundamental: 0.8; valuation: 3) shareholders today, KAF said its recommendation has taken into consideration BCB's net assets (NA) per share and the acquirer Evergreen Ratio Sdn Bhd's intention to maintain BCB's listing status.
BCB group managing director Datuk Tan Seng Leong owns Evergreen Ratio, which had earlier increased its BCB stake to 44.08%. Evergreen Ratio's higher BCB stake was what triggered the takeover offer for the latter.
Halex Holdings Bhd, whose share price has fallen 15% since it announced a proposed rights issue with free detachable warrants on April 22, is now seeking to change its earlier cash call to a renounceable two-call rights issue to raise up to RM40 million.
In its filing with Bursa today, the agrochemical and healthcare disposable products manufacturer said the change was made after considering the prevailing market price of Halex shares.
Halex (fundamental: 1.55; valuation: 1.1) said its latest proposal comes with free warrants at an issue price to be determined later.
The proportion of the first call, payable in cash on application by an entitled shareholder who wish to subscribe for the rights shares (first call) and the second call, to be capitalised from the share premium and retained earnings of Halex, would be determined later.
For illustration purposes, the company assumes the two-call rights issue will be issued on a one-for-one basis, with a free detachable warrant for every five rights shares subscribed.
Assuming an issue price of 50 sen per rights share (a discount of approximately 11.58% to the theoretical ex-rights price (TERP) of 44.81 sen based on the five-day VWAP up to and including July 10 of 53.62 sen), a first call of 35 sen apiece (21.01% discount to the TERP), a second call of 15 sen each, and the exercise price for the warrant at 55 sen (a premium of 24.13% to the TERP), the proposed corporate exercise will raise approximately RM37.09 million.
The bulk of the proceeds raised - RM17.17 million - will be utilised for the acquisition of a 75% stake in Kensington Development Sdn Bhd (KDSB) from Bestempire Ltd (Bestempire).
(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. )