MHB, Nexgram, YNH Property, Public Bank, Oversea, MEGB, GAB and Fututech

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KUALA LUMPUR (Feb 5): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, Feb 6) could include: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), Nexgram Holdings Bhd, YNH Property Bhd, Public Bank Bhd, Oversea Enterprise Bhd (Oversea), Masterskill Education Group Bhd (MEGB), Guinness Anchor Bhd (GAB) and Fututech Bhd.

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) (fundamental: 1.4; valuation: 1.8) saw its net profit fall 84% to RM16.48 million for the fourth quarter ended Dec 31, 2014 (4QFY14), on lower profit contribution from its offshore and marine segments.

Revenue for 4QFY14 also dropped 30% from a year ago, to RM508.34 million.

The weak quarterly results pulled down the group’s net profit for the full financial year, which declined 45% to RM129.93 million; while revenue fell 6% to RM2.7 billion.

Nexgram Holdings Bhd (fundamental: 2.3; valuation: 2.4) has entered into a joint venture agreement with Top Valley Properties Sdn Bhd (TVP) to construct and develop a 2.15 hectare leasehold agriculture land in Dengkil, Selangor.

TVP has granted the sole and exclusive development rights on the said property to Nexgram Land Sdn Bhd, which is wholly-owned by Nexgram for a mixed property development, comprising three blocks of towers with service apartments, commercial and retail shops.

TVP will be entitled to 4.5% of the gross development value of the proposed development, while Nexgram Land will be entitled to the remaining 95.5%.

Nexgram will be responsible for the development financing, which will be funded by internally-generated funds and bank borrowings.

YNH Property Bhd (fundamental: 0.6; valuation: 1.6) announced it had signed a memorandum of understanding with Hilton Worldwide Manage Ltd on Feb 4, to manage a hotel to be branded as "Hilton Kuala Lumpur City Center & Residences", to be incorporated in its Menara YNH development along Jalan Sultan Ismail.

While the details are scarce, the announcement could indicate the company’s long-delayed Menara YNH development could kick-off soon.

Public Bank Bhd (fundamental: 2.8; valuation: 1.2) reported a 21% rise in its fourth quarter ended Dec 31, 2014 net profit to RM1.25 billion, on higher interest, fee and commission income.

Higher Islamic banking and foreign exchange income, besides lower bad loan allowance, also supported profit growth.
For the full year, Public Bank registered a higher net profit of RM4.52 billion, versus RM4.06 billion a year earlier; while revenue rose to RM16.86 billion, from RM15.26 billion.

The bank proposed a second interim dividend of 31 sen per share in 4QFY14, bringing full-year dividends to 54 sen per share.

Chinese restaurant operator Oversea Enterprise Bhd (Oversea) will undertake a special Bumiputera issue of 35 million new shares, in order to comply with the Bumiputera equity condition set by regulators.

Oversea (fundamental: 2.5; valuation 1.8) said it was part of its listing conditions to allocate 12.5% of its enlarged issued and paid-up share capital to Bumiputera investors recognised by the Ministry of International Trade and Industry (MITI).

The price of the new shares will be determined at a later date; and the funds raised, will be used for working capital.

As part of its asset-light strategy, Masterskill (M) Sdn Bhd, a subsidiary of Masterskill Education Group Bhd (MEGB), has proposed to dispose properties in Petaling Jaya, Selangor, and Masai in Johor, to Brilland Property Sdn Bhd for RM79.7 million cash.

Brilland Property is 59%-controlled by Siva Kumar Jeyapalan, 44, while the remaining 41% is held by his family via Transaction Opinion Sdn Bhd. Siva Kumar has a 23% interest in MEGB (fundamental value: 0.8; valuation 0.6), and is the group’s chairman and executive director.

Guinness Anchor Bhd (GAB) posted a 15.2% year-on-year rise in net profit for the second quarter ended Dec 31, 2014 to RM76.1 million, mainly on higher revenue, and improved cost efficiencies and working capital management.

Revenue for the quarter was up 4.3% to RM520.8 million, due to favourable pricing and brand mix.

The company has (fundamental: 1.9; valuation: 0.9) declared a single-tier interim dividend of 20 sen per share, payable on April 22.

Fututech Bhd has requested its securities be suspended from trading from 9:00am on Friday (Feb 6), pending a material announcement. Speculation is that the company’s major shareholder will inject construction assets and job orderbook into Fututech.

(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.)