KUALA LUMPUR (Jan 26): Based on announcements and news flow today, companies that may be in focus tomorrow (Tuesday, Jan 27) include the following: Eversendai Corp Bhd, Hua Yang Bhd, Capitamalls Malaysia Trust (CMMT), Tropicana Corp, Parkson Holdings Bhd, KLCC Property Holdings Bhd (KLCCP), Perduren (M) Bhd and Salcon Bhd.
Eversendai Corp Bhd (fundamental: 0.75; valuation: 1.2) secured a contract worth RM184 million from India's Reliance Industries Ltd, for a mixed-use development in Mumbai.
The group, which is principally involved in the design, engineering, supply, fabrication and erection of steel structures for high rise buildings, shopping malls, stadiums and airports, said the contract was for the construction of the Dhirubhai Ambani International Convention and Exhibition Centre (DAICEC) in Mumbai.
It said fabrication work would be undertaken by Eversendai’s fabrication facilities in Malaysia, Dubai and India; and was scheduled to be completed by April 2016.
Hua Yang Bhd's (fundamental: 1.7; valuation: 2.4) wholly-owned unit, Tinggian Development Sdn Bhd, has acquired two parcels of freehold land in Penang, for a total of RM31 million.
The two parcels measure 4.9 acres and 3.14 acres respectively, and are located in Seberang Prai.
Hua Yang intends to turn the first site into a mixed development, commanding an estimated gross development value of RM242.8 million. The second parcel will be utilised for a residential condominium, with an estimated GDV of RM70.7 million.
Both these acquisitions will be funded by internally-generated funds and/or bank borrowings.
The acquisition of the first parcel is expected to be completed by the first quarter of the financial year ending March 31, 2016, while the second, by the fourth quarter of FY16.
Capitamalls Malaysia Trust (CMMT) (fundamental: 1.8; valuation: 0.5) has entered into a conditional sale and purchase agreement with Tropicana City Sdn Bhd, a wholly-owned subsidiary of Tropicana Corp Bhd, for the acquisition of Tropicana City Mall.
CMMT said the mall, together with the 12-storey Tropicana City Office Tower, will be acquired for a total purchase consideration of RM540 million.
CMMT intends to finance the acquisition through debt and/or equity fund raising, via the issuing of new units, with the proportion of the financing to be determined later.
The trust's shares closed eight sen or 5.13% at RM1.64, with a market capitalisation of RM2.85 billion.
Meanwhile, Tropicana (fundamental: 1.3; valuation: 3.0) will see the group’s borrowings reduced to RM1.95 billion, from RM2.41 billion as of Sept 30, 2014, hence reducing its net gearing to 0.52 times from 0.72 times.
“Tropicana is expected to recognise a fair value gain of RM13.1 million for the financial year ended Dec 31, 2014, with an additional gain on disposal of RM13.5 million, to be recognised in the financial year ending Dec 31, 2015,” said the group.
Department stores operator Parkson Holdings Bhd’s (fundamental: 1.65; valuation: 1.20) subsidiaries, Grand Parkson Retail Group Ltd and AUM Hospitality Sdn Bhd, have formed a joint venture for the purposes of developing its food and beverage business in China.
Parkson’s counter closed unchanged at RM2.49 today, translating into a market capitalisation of RM2.57 billion.
KLCC Property Holdings Bhd (KLCCP) (fundamental: 1.85; valuation: 1.2) announced today, a distribution per unit (DPU) of 8.75 sen for its fourth quarter ended Dec 31 last year (4QFY14), which is 0.46% higher than last year’s 8.71 sen.
The dividend will be distributed to the holders of KLCCP stapled securities, on Feb 27 this year.
For the full financial year ended Dec 31, 2014 (FY14), the stapled securities recorded a DPU of 33.64 sen, an increase of 16.24% from 28.94 sen in 2013. This represents a historical yield of about 5%, based on its closing price of RM6.80 today.
For its 4QFY14, KLCCP registered a profit of RM267.3 million — a 38% increase from the year before — on revenue gain of 4.4% to RM347 million.
For the quarter, total realised distributable income for KLCCP and KLCCP REIT, amounted to RM175.4 million, compared to RM165.5 million a year ago.
For the full financial year ended Dec 31, 2014, KLCCP’s profit was unchanged at RM458.6 million, on higher revenue of RM1.35 billion.
Total realised distributable income for KLCCP and KLCCP REIT for FY14, amounted to RM639.1 million, rising 37.7% from RM464.2 million the year before.
KLCCP stapled securities closed unchanged at RM6.80 per unit, translating to a market capitalisation of RM12.27 billion.
Perduren (M) Bhd (fundamental: 0.10; valuation: 1.8) will divest its existing property assets to focus on a possible niche area of property development and property investment businesses related to the oil and gas (O&G) industry, the company said in a filing to Bursa Malaysia today.
The decision is made by new controlling shareholders Datuk Kamaluddin Abdullah — the son of former prime minister Tun Abdullah Ahmad Badawi, and Datuk Mazlin Junid — the former president and chief executive officer (CEO) of Daya Materials Bhd.
Both have extensive experience in the O&G sector.
Shares of Perduren fell by 1 sen or 0.51% to close at RM1.95 today, with a market capitalisation of RM264.4 million. It was traded higher than the RM1.60 offer price.
Oversea-Chinese Banking Corporation Limited (OCBC) and its unit Great Eastern Holdings Limited have pared their holdings in Salcon Bhd, thus ceasing to be substantial shareholders in the company, effective Jan 21.
Following the disposals, both OCBC and Great Eastern now hold 33.2 million shares or 4.98% in the group.
Salcon shares closed 0.5 sen or 0.79% higher at 63.5 sen, with a market capitalisation of RM423.23 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 valuations.)