KUALA LUMPUR (Dec 3): Based on news flow and corporate announcements today, companies that may be in focus tomorrow (Thursday, Dec 4) could include the following: Muhibbah Engineering (M) Bhd, Magni-Tech Industries Bhd, Bio Osmo Bhd, Censof Holdings Bhd, Glomac Bhd, Kulim (M) Bhd, Sime Darby Bhd, and Oriental Holdings Bhd.
Muhibbah Engineering (M) Bhd has secured a RM135 million contract from Westport Holdings Bhd to construct and complete the first 300 meter of Container Terminal 8 wharf and access bridges and associated works (Part A) at Westports, Pulau Indah.
Muhibbah told Bursa Malaysia that it has received a letter of award today from Westports Malaysia Sdn Bhd, a wholly owned subsidiary of Westport Holdings, with regards to the contract.
Muhibbah said Westport has an option, within six months from the date of site possession for Part A, to award to Muhibbah the second 300 m of Container Terminal 8 wharf (Part B) which is worth RM256 million.
"The possession of Part A is scheduled in this month and is expected to be completed within 12 months from the date of site possession," it said. Part B, if awarded, can be completed by the third quarter of 2016.
Muhibbah said the contract is expected to contribute positively to the earnings and net assets of the group in future financial years. Its share price fell five sen or 2.44% at RM2, giving it a market capitalisation of RM858.46 million.
Garment and plastic packaging manufacturer Magni-Tech Industries Bhd's net profit dropped 15.6% to RM8 million in the second financial quarter ended Oct 31 (2QFY14) from RM9.5 million in the previous corresponding quarter, due to higher operating expenses.
Quarterly revenue, however, rose 7.5% to RM162.04 million from RM150.77 million a year ago, mainly due to an 8.5% increase in sales orders received by the garment business.
For the half-year period, net profit slipped 2.8% to RM18.09 million from RM18.62 million in the same period last year, while revenue jumped 12.4% to RM339.3 million from RM301.8 million previously.
Magni-Tech blamed the dip in profit on lower other operating income and higher operating expenses incurred. Its share price dropped two sen or 0.7% to close at RM2.76 today, translating to a market capitalisation of RM300.51 million.
Bottled water manufacturer Bio Osmo Bhd has aborted a planned deal to venture into the provision of catering and hospitality services to the oil & gas (O&G) industry as well as other related support services.
The company told Bursa that it has mutually terminated a conditional share sale agreement to buy 49% equity stake in Bayam Enterprise Sdn Bhd for RM17.15 million.
"The board has resolved not to undertake the proposed acquisition and the proposed diversification," the company said.
The new venture was proposed in late May. Prior to the official announcement, months of speculation of the company venturing into oil & gas sector had sparked interest in hardly traded shares.
Its share price shot up to a multi-year high of 23.5 sen in early January from 11 sen in December last year. Bio Osmo ended flat at 11 sen today with a market capitalisation of RM52.36 million.
Censof Holdings Bhd announced its 80%-owned Knowledgecom Corp Sdn Bhd has clinched an "Upskilling ICT Sector" contract from Talent Corp Malaysia Bhd worth RM2.8 million.
In a filing to Bursa Malaysia this evening, Censof said the contract will start from the date of the definitive agreement until six months after the final batch of participants have been trained.
The group said the definitive agreement must be signed by both parties within 30 days from Nov 24.
Censof said the contract would contribute positively to its future earnings. Censof shares have fallen 36% from 66.5 sen on Oct 9 to close at 42.5 sen today, giving it a market capitalisation of RM192 million.
Censof is controlled by group managing director Ameer Shaik Mydin and non-independent non-executive director Datuk Samsul Husin, with an indirect stake of 42.33% held through SAAS Global Sdn Bhd.
Glomac Bhd's net profit shrank 66.4% to RM13.17 million for its second financial quarter ended Oct 31, 2014 (2QFY15) compared to RM39.2 million in the previous corresponding period due to lower revenue.
Quarterly revenue retreated to RM86.29 million, almost 45% down against RM155.8 million a year ago. Earnings per share (EPS) fell substantially to 1.81 sen per share against 5.39 sen per share a year earlier.
In a filing with Bursa Malaysia today, Glomac said the decline in revenue was due to completion of Damansara Residences and tail-end projects in Bandar Saujana Utama.
For the six months ended Oct 31 (1HFY15), the property developer saw its net profit decline sharply to RM34.02 million or 4.68 sen per share from RM63.33 million or 8.78 sen per share a year ago, on lower revenue of RM192.83 million versus RM318.07 million in 1HFY14.
Going forward, Glomac said the property market would continue to be challenging. Shares of Glomac closed unchanged at RM1.05, translating to a market capitalisation of RM755.88 million.
Shareholders have given Kulim (M) Bhd the go-ahead to dispose its 49% stake in London-listed New Britain Palm Oil Ltd (NBPOL) to Sime Darby Bhd at £525.40 million or RM2.75 billion.
In a filing with Bursa, Kulim said the resolution on the proposed disposal was duly approved at the extraordinary general meeting (EGM) which was held in Johor Bahru, Johor, this afternoon.
"The board of directors of Kulim is also pleased to announce that Kulim has accepted the offer made by Sime Darby Plantation Sdn Bhd on Oct 9, 2014," it said.
The acceptance will result in Kulim disposing its entire stake in NBPOL, comprising more than 73.48 million shares, at the offer price of £7.15 apiece.
With the closing price of £6.75 yesterday, Kulim's 49% stake in NBPOL is worth some £496 million.
Sime Darby had in October launched a takeover offer for the entire 100% stake in NBPOL for £1.07 billion (about RM5.7 billion) in cash. The takeover offer is conditional upon Sime Darby receiving not less than 51% of the voting rights in NBPOL.
In Nov 13, Sime Darby Bhd president and group chief executive Tan Sri Mohd Bakke Salleh reportedly said "to own 51% stake in NBPOL is ideal" for the conglomerate. He also said the Papua New Guinea (PNG) government intended to raise its stake in NBPOL from 18% to 30%.
Kulim closed 9 sen lower to RM3.24 today, giving it a market capitalisation of RM4.3 billion; while Sime Darby closed 7 sen lower to RM9.51 billion translating to a market capitalisation of RM57.67 billion.
Oriental Holdings Bhd's unit Ultra Green Sdn Bhd will partner Oriental Boon Siew (M) Sdn Bhd to complete reclamation works on selected phases of foreshore land in Melaka that covers about 275 acres for RM135.1 million.
Ultra Green is expected to enter into a joint-venture agreement with Oriental Boon Siew to "allow Oriental Boon Siew to carry out and complete the reclamation works" on phases 2A, 3A, and 3B of the foreshore tract, the group's statement to Bursa Malaysia said this evening.
It said its 51%-owned Oriental Boon Siew has appointed Benalec Sdn Bhd as its main contractor, given the latter's requisite expertise. The remaining 49% in Oriental Boon Siew is held by Boontong Estates Sdn Bhd.
Oriental said the reclamation work on the three phases mentioned is expected to be completed in 30 months from the date of commencement. Oriental closed 20 sen lower at RM6.90 today, giving it a market capitalisation of RM4.28 billion.