KUALA LUMPUR (July 29): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Thursday, July 30) could include the following: Datasonic, Sunway Construction, TA Enterprise, Axis REIT, XiDeLang, Bursa Malaysia, Astral Supreme, TSH Resources, Asia Biotechnologies, Ekowood and AWC.
Electronic-identification specialist Datasonic Group Bhd is eyeing to capture 50% of Malaysia's payment card-renewal market by the end of next year.
According to its non-executive chairman General Tan Sri Dr Mohamed Hashim Mohd Ali, the company plans to increase its card manufacturing number to 10 million a year from 2-3 million currently.
"Datasonic (fundamental: 2.2; valuation: 0.9) has invested RM6 million to enhance the security of payment card," Mohamed Hashim told reporters after Datasonic's annual general meeting here today.
Sunway Construction Group Bhd, which was listed yesterday, saw its share price fall below its initial public offering price of RM1.20 today despite stabilising action being taken.
At 5pm market close, the stock settled at RM1.18, down two sen or 1.67%. It had earlier fallen to an intraday low of RM1.16 before paring losses.
Sunway Construction was the ninth most actively traded stock on Bursa Malaysia, registering a trading volume of 19.72 million.
The current price gives the construction company a market capitalisation of RM1.53 billion.
The decline in share price has wiped off RM12.6 million of its market cap since listing.
Stabilising manager RHB Investment Bank Bhd had bought some 4.14 million shares and 1 million shares at RM1.20 each in Sunway Construction yesterday and today respectively.
On its maiden trading day, the stock has risen to its intraday high of RM1.32 yesterday, prompting investors to take profit.
TA Enterprise Bhd has no plans to sell its stockbroking business, its managing director and chief executive director Datin Alicia Tiah said, but it is open to merger and acquisition (M&A) opportunities to expand its business.
Tiah said the stockbroking business is still considered a "cash cow" for the group, although its profit contribution has fallen sharply to 20%, from 80% previously.
She said the group had in April this year, sold its Hong Kong stockbroking unit, TA Securities (HK) Ltd, due to stiff competition from Chinese players, but the industry in Malaysia is "not as bad".
Tiah added that TA Enterprise (fundamental: 1; valuation: 1.1) does not rule out any M&A possibilities to expand its stockbroking business, which complements its property development business that has a longer lag time in generating returns.
There has been speculation on and off for some years that TA Enterprise was talking to K&N Kenanga Holdings Bhd to sell TA Securities. TA Securities is one of the few remaining family-owned stockbroking firms, following the merged entity of Affin Investment Bank Bhd and Hwang-DBS Investment Bank Bhd.
Axis Real Estate Investment Trust (Axis REIT) saw the emergence of Lembaga Tabung Haji as its substantial shareholder after controlling some 28.38 million units, or a 5.2% stake in the REIT.
Axis REIT (fundamental: 0.90; valuation: 0.15) told Bursa Malaysia today that the pilgrimage fund had acquired a total of 1.15 million shares between July 9 and July 14, 2015.
This brings its total stake in the trust to 5.2%.
China-based sports shoes maker XiDeLang Holdings Ltd plans to acquire Jinjiang Yangsen Garments Co Ltd to expand its business to include the manufacturing of apparels.
In a filing with Bursa Malaysia today, XiDeLang said it has entered into a heads of agreement (HOA) with Jinjiang Yangsen for the proposed acquistion.
Should the acquisition go through, XiDeLang (fundamental: 1.3; valuation: 1.5) said it will enable the company to vertically integrate its existing operation and further strengthen and complement its existing designing and marketing of apparels, leading to increase in sales of its apparels division.
XiDeLang will enter a definitive agreement within three months from the signing of the HOA, upon conclusion of negotiations.
The purchase consideration is to be satisfied via cash and/or issuance of new shares.
It will also seek approval from its shareholders for the proposal at a special general meeting, as the contribution from the manufacturing of apparels could exceed 25% or more of its net profits in the future.
Minister of Finance Inc (MoF) is no longer a substantial shareholder of Bursa Malaysia Bhd after disposing of some 86.2 million shares in the stock exchange regulator.
Bursa said MoF sold the shares today through a direct business transaction with Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
With the acquisition, KWAP now holds some 105.83 million shares, equivalent to a 19.8% stake in Bursa (fundamental: 2.3; valuation: 2.1).
Several public listed companies linked to Datuk Nur Jazlan Mohamed may also be closely watched as Nur Jazlan has relinquished his position following his new appointment as Deputy Home Minister.
These companies include Astral Supreme Bhd, TSH Resources Bhd, Asia Biotechnologies Bhd and Ekowood Bhd.
Integrated facilities management services provider AWC Bhd has proposed to acquire the entire equity interest in Qudotech Sdn Bhd and DD Techniche Sdn Bhd (DDT) for RM26.5 million.
It told Bursa Malaysia today that it has entered into a conditional share sale agreement with vendors Tan Siew Kheng, Chee Kar Ming, Tan Lay Kuen and Soo Chow Mei for their interests in the companies.
The purchase consideration will be satisfied by a combination of cash and issuance of new shares, it added.
On the rationale, AWC (fundamental: 2.85; valuation: 1.1) said it will provide the group with the opportunity to expand its existing suite of engineering and facility management services to include the businesses of the target companies.
"It will also enhance its competitiveness when tendering for projects in both the private and public sectors," it added.
(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.)