KUALA LUMPUR (Aug 14): Based on corporate announcements and news flow today, stocks in focus on Tuesday (Aug 15) may include the following: Media Prima, UEM Edgenta, Guan Chong, YFG, Asiamet Education, Asia Knight, Utusan Melayu and Hap Seng
Media Prima Bhd reported a second straight quarterly loss today, blaming it on a RM142.4 million impairment of its investment in associate Malaysia Newsprint Industries Sdn Bhd (MNI).
The group posted a net loss of RM132.91 million for its second financial quarter ended June 30, 2017 compared with a net profit of RM27.92 million for the previous corresponding quarter. Earnings per share showed a loss of 11.98 sen against a profit of 2.52 sen previously.
Media Prima reported a 5.9% drop in second quarter revenue to RM328.77 million, from RM349.55 million a year earlier.
MNI, a 21.36% indirect associate of Media Prima via its 98.17%-owned subsidiary The New Straits Times Press (M) Bhd, had volunteered to wind up on Aug 1 after incurring losses for the past three years due to declining newsprint demand.
UEM Edgenta Bhd is selling its 61.2% stake in New Zealand-listed Opus International Consultants Ltd (OIC) for NZ$1.78 (RM5.57) a share to unlock the value of the seller's stake in Opus.
UEM Edgenta said it was selling its Opus stake to Canada-listed WSP Global Inc, which is offering to buy 100% of Opus. UEM Edgenta, which provides hospital support services, also offers infrastructure management.
"The proposed disposal represents an opportunity for UEM Edgenta to unlock value through an opportunistic divestment and monetise its investment in OIC.
Guan Chong Bhd’s net profit more than doubled in its second quarter ended June 30, 2017 (2QFY17) to RM22.88 million from RM10.66 million last year, mainly due to lower bean prices and higher net gain on foreign exchange.
Earnings per share ballooned to 4.79 sen per share in the quarter from 2.23 sen per share a year ago.
Revenue, however, fell 17% to RM482.3 million in 2QFY17 from RM583.39 million in 2QFY16, mainly on lower cocoa cake sales volume, and lower cocoa butter selling price.
For its cumulative first half (1HFY17), net profit grew 18% to RM28.64 million from RM24.36 million in the corresponding year, though revenue dropped 5% to RM1.11 billion from RM1.17 billion.
Practice Note 17 (PN17) company YFG Bhd has bagged a RM235 million contract to build apartments in Kajang, Selangor, but lost the RM245 million sub-contract for PR1MA (1Malaysia People’s Housing) Homes in Pedas, Rembau, Negeri Sembilan.
The PR1MA project, which was awarded to YFG on Feb 16, was terminated by Wearegold Sdn Bhd (WRG) as the latter is not able to take part in its proposed regularalisation plan due to unforeseen reasons.
Asiamet Education Group Bhd, which operates the Asia Metropolitan University, is disposing of its campus building in Kota Bharu, Kelantan for RM10.2 million.
The building, comprising 11 units of shop lots with a net lettable area of 4,537 sq metres, is being sold to Universiti Teknologi MARA (UiTM), Asiamet said in a filing with Bursa Malaysia.
The sale is in line with its “asset light strategy” to enhance its financial footing and to raise funds as working capital, the group said, adding estimated gain from the disposal is about RM1.25 million.
Asia Knight Bhd plans to undertake a share capital reduction and buy a 60% stake in a plastic products producer for RM48 million, together with a rights issue with warrants to raise about RM34.9 million to part finance the purchase, to regularise its Practice Note 17 (PN17) status.
The proposed capital reduction will reduce its share capital to RM3.6 million from RM60.6 million and give rise to a credit of RM57 million, which it will use to offset its accumulated losses.
As for its planned cash call, Asia Knight said it will involve the issuance of 348.8 million rights shares and 174.4 million warrants, on the basis of six rights shares with three free warrants for every one existing Asia Knight share held on an entitlement date to be fixed.
Asia Knight said the rights issuance should raise gross proceeds of about RM34.9 million, at an issue price of 10 sen a share.
Utusan Melayu (Malaysia) Bhd, which publishes Utusan Malaysia, Mingguan Malaysia and Kosmo, saw its net loss narrow to RM10.68 million in the second quarter ended June 30, 2017 (2QFY17) from RM16.26 million a year ago on lower operating costs.
Loss per share also fell to 9.64 sen from 14.68 sen.
However, quarterly revenue dropped 7.3% to RM53.83 million in 2QFY17 from RM58.08 million in 2QFY16, mainly due to lower advertisement revenue.
The group also recognised gain on disposal of properties of RM3.7 million in the previous corresponding quarter, it added.
For the cumulative six months (1HFY17), Utusan Melayu's net loss also narrowed to RM33.52 million from RM42.54 million a year ago.
However, revenue for 1HFY17 fell 9.9% to RM95.34 million from RM105.82 million in 1HFY16 due to a reduction in revenue from the advertisement segment.
Hap Seng Consolidated Bhd is selling 10.06 acres of leasehold land in Tawau, Sabah for RM175.28 million to a related party, Hong Kong-based Lei Shing Hong Ltd (LSH).
“The proposed disposal enables us to realise an attractive gain and the proceeds will be used to reduce bank borrowings and/or to contribute to the working capital of Hap Seng,” the group said in a filing with Bursa Malaysia.
The disposal consideration of about RM400 per square foot was arrived at on a willing-buyer willing-seller basis based on a valuation by independent valuer VPC Alliance (Sabah) Sdn Bhd, Hap Seng said.