Friday 29 Mar 2024
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KUALA LUMPUR (Dec 8): Based on corporate news flow and announcements today, stocks in focus tomorrow (Thursday, Dec 10) could include: Country Heights (CHHB), EG Industries, Sanichi Technology, SP Setia, Kumpulan Perangsang Selangor (KPS), Mikro MSC, PUC Founder (PUCF), SCGM and Berjaya Food (BFood).

Country Heights Holdings Bhd (CHHB) has inked a joint venture (JV) agreement with Galaxus Corp Sdn Bhd (Galaxus) and Tan Sri Lee Kim Tiong @ Lee Kim Yew to revamp the management and business of the Palace of the Golden Horses in Seri Kembangan, Selangor.
 
The JV would be carried out via a newly-incorporated company, Stallion Management Sdn Bhd (Stallion), which was incorporated on Oct 23, 2015. Its principal activity is hotel management.
 
The JV is expected to seek strategic partners to expand the hotel business, raise funds for the expansion of the Hotel business and target on a best effort basis, the securing of at least five additional hotels within Asia, to be managed as part of the business, a filing to Bursa Malaysia showed.
 
Under the JV agreement, CHHB will invest RM690,000 in Stallion to acquire 69% of the stakes in the company, while Galaxus will invest RM30,000 for 30% of interest, and the remaining 1% would be subscribed by Lee, who is also the director and major shareholder of CHHB.
 
CHHB said the JV Agreement shall come into effect on Dec 9 and shall be valid for the life of Stallion, unless terminated earlier, as provided in the JV Agreement.

EG Industries Bhd is disposing of six parcels of unexpired leases of industrial land, measuring 6.28ha in Bandar Kuala Ketil in Kedah, for RM9 million to calcium-based chemical product manufacturer and trader Schaefer Kalk (Malaysia) Sdn Bhd.
 
The disposal is part of its restructuring exercise to strengthen its balance sheet and improve its gearing. The group will focus its resources on its core electronic manufacturing services business.
 
The gross proceeds of RM8.5 million arising from the disposals will be utilised mainly for repayment of bank borrowings, with estimated interest savings of RM425,000 at an annual interest rate of 5%, it said.
 
The disposals are expected to realise an estimated gain of RM1.6 million, which translates into a gain of 77 sen per share for the financial year ending June 30, 2016 (FY16).
 
The deals are expected to be completed by end May or June 2016.

Sanichi Technology Bhd today signed a memorandum of understanding (MoU) with German firm Protev International GmbH to form a joint venture (JV) in providing a one-stop product and service centre to all its customers worldwide in the manufacturing of plastic injection moulds and tools.
 
The company revealed that both parties intend to form a JV company called Sanichi Protev Sdn Bhd, in which Sanichi will hold a 51% stake and Protev, the remaining 49%.
 
Sanichi shall be responsible for the product design and production activities; whereas Protev, which is an innovator in mould injection-tooling consulting, shall be responsible for the marketing and product distribution in the JV company.
 
The MoU is not expected to have any immediate material effects on the issued and paid-up share capital, net assets and earnings per share of Sanichi Group for the financial year ending June 30, 2015.

SP Setia Bhd, the country's biggest listed property developer by sales, is confident it can achieve its RM4 billion sales target for this year, underpinned by RM9.5 billion of unbilled sales.
 
Its acting chief financial officer Choy Kah Yew also said SP Setia was expecting revenue contribution from its overseas projects to reach 40% to 50% next year, from 30% currently; the remainder of revenue for FY15 now comes from Malaysian projects.
 
As of Oct 31, the group has 27 ongoing projects, with undeveloped land bank of 3936 acres and a gross development value (GDV) of RM69.07 billion. International reach includes Vietnam, Australia, Singapore, China and the UK.
 
SP Setia, through its associate company Setia Federal Hill Sdn Bhd (SFH), today inked a RM1.07 billion syndicated financing facilities agreement with CIMB Investment Bank Bhd, Malayan Banking Bhd, AmInvestment Bank Bhd, Industrial and Commercial Bank of China (Malaysia) Bhd for a land swap development transaction under the government's Public Private Partnership Programme.
 
Under the land swap, SFH will undertake the development of a new integrated health and research institute, which will be known as the National Institute of Health (1NIH), on a 41-acre land in Setia Alam, Shah Alam.
 
In return, the government will provide SFH with a 52-acre site on Federal Hill, for the development of a mixed residential commercial project worth RM15 billion in GDV.
 
The Federal Hill project is expected to be launched in 2017 and would contribute to the group’s earnings in the next 15 to 20 years.

Kumpulan Perangsang Selangor Bhd’s (KPS) independent director Rosely @ Mohamed Ross Mohd Din told shareholders that the Selangor state-owned investment holding company will find a new business to invest in, after the disposal of its 90.83% stake in Titisan Modal (M) Sdn Bhd, which wholly owns the water treatment operator Konsortium ABASS Sdn Bhd.
 
According to a minority shareholder, Rosely said KPS will find a new investment by the time the company meets its shareholders again at the next annual general meeting.

The extraordinary general meeting today to vote for the selling of Titisan Modal's to Pengurusan Air Selangor Sdn Bhd for RM78.05 million, went on for three hours. The resolution was passed.

In a statement today, KPS said the proposed disposal will allow the group to "explore investment opportunities in sectors where it already has existing investments, as well as in new business sectors or areas."
 
KPS' current investments include oil and gas, property development and investment, and mobile virtual network operator telecommunications service.
 
KPS said selling off Titisan Modal would not result in it becoming a cash company — or being ascribed the Practice Note 16 status.
 
Mikro MSC Bhd has fixed the issue price of its private placement at 35.5 sen per placement share, to raise RM10 million.

Mikro said the issue price of 35.5 sen per placement share represents a discount of 9.72% to the five-day volume weighted average market price of Mikro shares, up to and including Dec 8, 2015, of 39.32 sen per Mikro share.
 
The payment from the placees are expected to be received within five market days from the price fixing date, the power relay manufacturer said.
 
On Dec 1, the ACE Market-listed company proposed to undertake a private placement of 28.18 million new Mikro shares, representing up to 10% of the issued and paid-up share capital of Mikro MSC, to third party investors to be identified.
 
The proceeds would be used for renovation and refurbishment works, the purchase of manufacturing or testing machineries and equipment, and working capital.

PUC Founder (MSC) Bhd (PUCF) has obtained the approval from Bursa Securities and the Securities Commission Malaysia (SC) for its proposed renounceable rights issue of irredeemable convertible unsecured loan stock (ICULS), with warrants to raise up to RM83.9 million.
 
PUCF said the SC, vide its letter dated Dec 8, had approved the proposed issuance of the ICULS pursuant to the proposed rights issue of ICULS with warrants under section 214(1) of the Capital Market and Services Act, 2007.
 
Group managing director Cheong Chia Chieh said the group will confirm the extraordinary general meeting (EGM) date as soon as possible, to start raising fund for its projects.
 
"The corporate exercise will allow the company to raise fund for our next 9.5-megawatt solar project and by that, we hope to give good rewards and returns to our shareholders," he added.

SCGM Bhd posted a net profit of RM4.79 million for the financial second quarter ended Oct 31,2015 (2QFY16), a 57.6% increase from RM3.04 million a year ago, helped by favourable product mix, lower fuel cost and strengthening of US dollar against the ringgit.
 
SCGM said based on the enlarged share base of 132 million after the one-for-two bonus issue and 10% private placement, the earnings per share (EPS) rose to 3.6 sen, from 2.3 sen.
 
Revenue rose 30.6% to RM34.12 million, from RM26.12 million, as the sale of new products, plastic trays and plastic cups contributed to sales performance.
 
The thermo-vacuum form and vacuum plastic packaging manufacturer also proposed a second interim dividend of 3 sen per share for the financial year ending April 30, 2016 (FY16), payable on Jan 13, 2016.
 
The group expects financial results to be stable over the remaining quarters of FY16, and believes its new product will increase sales.
 
The company also redesignated Datuk Seri Lee Hock Seng, 65, who was previously the managing director of SCGM, as the executive chairman, effective today.
 
His brother, Datuk Seri Lee Hock Chai, 53, has been redesignated as the firm's managing director. His was previously the executive director.

Berjaya Food Bhd’s (BFood) net profit plummeted 96% to RM6.2 million or 1.65 sen per share in its second financial quarter ended Oct 31, 2015 (2QFY16), from RM163.60 million a year ago, due to the remeasurement gain of RM158.60 million last year and foreign exchange loss.
 
Revenue, however, surged 79.8% to RM135.42 million, compared with RM75.32 million in 2QFY5, mainly due to the full effect of consolidating Berjaya Starbucks Coffee Co Sdn Bhd (BStarbucks), which became a subsidiary of the group in 2QFY15.
 
BFood also declared a second interim dividend of 1.25 sen per share for the financial year ending April 30, 2016 (FY16), payable on Jan 22, 2016.
 
Due to the same reasons, the group’s net profit also fell 92.74% to RM12.31 million for the six months ended Oct 31, 2015 (6MFY16), from RM169.6 million a year ago, despite revenue rising by 133% to RM267.83 million, from RM114.95 in 6MFY15.
 
Going forward, the group expects Starbucks Malaysia to maintain its revenue growth momentum and the group’s overall results to be satisfactory for the remaining quarters of the current financial year.
 
"After October, ringgit has strengthened slightly against the US dollar and show signs of stability. The profit margin is not expected to reduce further, if the exchange rate is stabilised at the current level,"  it said.

(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.)

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