Insider Moves: Barakah Offshore Petroleum Bhd, Iris Corp Bhd, SYF Resources Bhd, N2N Connect Bhd, Titijaya Land Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on June 25, 2018 - July 01, 2018.
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Notable filings

FELDA Investment Corp Sdn Bhd disposed of 19.5 million shares in Barakah Offshore Petroleum Bhd between June 8 and 12. After the sale, FIC still has 54 million shares or a 6.53% stake in the company, which saw its share price fall to a low of 8.5 sen on May 18.

FIC also sold shares in Iris Corp Bhd. Between June 7 and 12, FIC divested 35.5 million shares after the counter rebounded from a 13-month low of 12 sen recently.

Over at Diversified Gateway Solutions Bhd, its second largest shareholder, Omesti Holdings Bhd, which is also listed on Bursa Malaysia, sold 6.87 million shares on June 6 and 7, filings show.

E-payment system provider GHL Systems Bhd saw the emergence of a substantial shareholder, Apis Growth 14 Ltd, which purchased 65 million shares through a placement on June 7. The placement was priced at RM1.30 per share.

A new substantial shareholder also emerged in Meda Inc Bhd. On June 8, M101 Ventures Sdn Bhd purchased 77.58 million shares or a 16.06% stake in the company. On the same day, One Sierra Sdn Bhd sold 33.45 million shares or 6.92% equity interest in Meda and is no longer a substantial shareholder in the real estate firm.

Interestingly, Meda’s share price shot up from 34 sen to 47 sen last Tuesday.

Med-Bumikar Mara Sdn Bhd continued to trim its position in Ewein Bhd. It sold some 10 million shares on June 8, a filing shows.

Furniture maker SYF Resources Bhd, whose share price has fallen 32% since the start of the year, saw its substantial shareholder Insas Credit & Leasing Sdn Bhd dispose of 30 million shares on June 7 and cease being a substantial shareholder.

SYF Resources’ share price closed at 26.5 sen last Thursday — its lowest level since July 2014.

The stock has been on a downward trend since February last year. The selling pressure could have been compounded by the decline in the company’s earnings. Net profit fell to RM2.52 million in the first half of the financial year ended July 31, 2018, from RM22.16 million in the previous corresponding period. It incurred a net loss of RM3.75 million in the second financial quarter ended Jan 31 compared with a net profit of RM10.46 million a year ago.

 

Notable movements

N2N Connect Bhd has probably outperformed many counters on Bursa. Since rebounding from a one-year low of 67 sen in early April, the stock has been climbing steadily despite cautious sentiments. It hit a record high of RM1.26 on June 14. Year to date, it has gained 33.7%.

Japan’s SBI Holdings Inc emerged as a substantial shareholder in N2N Connect after purchasing 52.04 million shares or a 9.08% stake through a placement on June 13.

N2N Connect has also fared well in terms of its earnings. Net profit nearly doubled to RM6.69 million in the first quarter ended March 31 (1QFY2018) from RM3.62 million in the previous corresponding period. Revenue rose to RM25.68 million from RM11.36 million the year before.

Titijaya Land Bhd, which has formed a joint venture with China Railway Group Ltd, saw its share price slide to a record low of 37 sen on May 31 despite higher earnings achieved in the third quarter ended March 31 (3QFY2018).

The JV, in which Titijaya has a 70% stake, will be developing a RM1.8 billion residential and office project called 3rdNvenue on a 6.1-acre parcel near Jalan Ampang, Kuala Lumpur. The parcel was valued at about RM1,500 psf in 2016, pursuant to the JV agreement.

Titijaya posted a net profit of RM21.68 million in 3QFY2018 compared with RM19.23 million in the previous corresponding quarter. Quarterly revenue came in higher at RM79.9 million compared with RM70.47 million the year before.

A filing shows that the company’s second largest shareholder, Titi Kaya Sdn Bhd, sold 27.5 million shares through an off-market transaction on June 8. Titi Kaya is left with 69.23 million or a 5.15% stake in the property firm.

 

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