KUALA LUMPUR (Nov 30): Based on corporate announcements and news flow today, companies in focus tomorrow (Dec 1) may include the following: MMWE, RHBCap, Boustead, Eversendai, IFCA, EG Industries, Kenanga, Damansara Realty, Mpay, Karex, Heitech Padu, Carlsberg, Iskandar Waterfront City (IWCity), FGV and Taliworks.
MWE Holdings Bhd has received a takeover offer from Tan Sri Surin Upatkoon, via his private vehicle Pinjaya Sdn Bhd, to acquire its entire business and undertaking, including all assets and liabilities, for RM391.4 million of RM1.70 per share.
In a filing with Bursa Malaysia today, MWE said the purchase consideration will be satisfied by way of RM267.49 million cash, and a deferred amount of RM123.91 million left owing by Pinjaya to MWE.
Pinjaya proposed that upon completion of the acquisition, MWE will declare a distribution via a special dividend of RM1.70 per share as a capital repayment exercise, and thereafter, the existing MWE shares will be cancelled.
On completion of the proposed distribution, Pintaja intends to delist MWE.
RHB Capital Bhd's (RHBCap) net profit fell 64.3% to RM194.44 million in the third quarter ended Sept 30, 2015 (3QFY15), from RM544.61 million a year earlier. Profit fell on lower non-interest income, as the group registered workforce-downsizing cost and higher operating expenses.
In a statement to Bursa, RHBCap said revenue declined to RM2.64 billion, from RM2.72 billion in 3QFY14.
"The group expected 2015 to be challenging and has focused on maintaining asset quality and improving operational efficiency," RHBCap said.
RHBCap's workforce-downsizing programme was known as the career transition scheme (CTS).
The group said the net profit for the nine-month period (9MFY15) fell to RM1.2 billion, from RM1.55 billion. Revenue was, however, higher at RM7.98 billion versus RM7.58 billion.
Excluding a one-off CTS expenses of RM308.8 million, the group's normalised pre-tax profit for 9MFY15 was at RM1.94 billion, lower by 7.2%.
Boustead Holdings Bhd’s net profit for the third quarter ended Sept 30, 2015 (3QFY15) fell 67% to RM6 million, from RM18.2 million, due mainly to a decline in revenue in all its divisions.
In a filing to Bursa, Boustead said revenue for the quarter fell to RM2.12 billion, from RM2.69 billion a year earlier. Earnings per share fell to 0.58 sen, from 1.76 sen in 3QFY14.
The conglomerate declared a third interim dividend of 6 sen per share for the financial year ending Dec 31, 2015, to be paid on Jan 12, 2016.
For the nine months ended Sept 30 (9MFY15), Boustead's net profit fell 91.76% to RM9 million, from RM109.2 million a year ago; while revenue fell to RM6.22 billion versus RM7.78 billion in 9MFY14.
In a statement today, Boustead's deputy chairman and managing director Tan Sri Lodin Wok Kamaruddin said it has been a trying economic period, with external pressures impacting the group's earnings.
Eversendai Corp Bhd saw its net profit for its third quarter ended Sept 30, 2015 (3QFY15) surge 401% to RM14.58 million or 1.88 sen per share, underpinned by higher value of contract executions during the quarter.
The oil and gas (O&G) services provider posted a net profit of RM2.91 million or 0.88 sen per share in 3QFY14, its filing to Bursa Malaysia today showed.
Its latest quarterly revenue came in 1.95 times higher at RM471.48 million, compared with RM241.03 million in the same period last year.
For the cumulative nine months (9MFY15), Eversendai's net profit soared 126.9% to RM48.08 million or 6.21 sen per share, from RM21.19 million or 2.74 sen per share in 9MFY14.
Revenue for the period came in 85.9% higher at RM1.3 billion, as compared to RM694.3 million a year ago.
Multimedia super corridor-status company IFCA MSC Bhd expects to earn between 1% and 5% income from the value of each property sold through its "Property365.my" website, targeted for launch in early December.
In a filing with Bursa Malaysia today, IFCA said the property portal marked its entry into the e-commerce business, where it would also earn subscription fees from property developers who utilised Property365.my's services.
“It is designed with an online booking feature to help property developers market and sell their projects smarter and faster. Potential property buyers can access all the information on their preferred projects, as well as register and proceed to book their preferred units through this platform,” it said.
EG Industries Bhd has clinched new orders for box-build products worth approximately RM150 million, which is expected to be recognised in financial year ending June 30, 2016 (FY16).
In a statement today, EG Industries revealed the orders entail undertaking end-to-manufacturing services, from designing to shipping of completed products to customers' end users.
Of the RM150 million of orders, RM25 million for the box-build of ICT and consumer electronic products has been recognised in 1QFY16, with the balance to be recognised for the rest of FY16, said EG Industries' group chief executive officer cum executive director Alex Kang.
"We anticipate the revenue contribution from [the] box-build segment to increase to 20% in FY16, from approximately 10% a year ago," he added.
It also announced its first quarter ended Sept 30, 2015 (1QFY16) results, which saw net profit fall by 33.35% to RM5.04 million, from RM7.56 million, due to absence of a gain on disposal of other investments of RM6.7 million that was seen in 1QFY15.
Netting off the gain on disposal, its pre-tax profit grew to RM5.34 million for the quarter under review, approximately 5.2 times or RM4.31 million, from RM1.03 million in 1QFY15, mainly driven by favourable product mix and enhanced operational efficiency.
Nevertheless, the group's revenue for 1QFY16 fell 1.45% to RM190.88 million, from RM193.69 million a year ago, due to a change of product sales mix to focus on high margin products.
Investment banking group K&N Kenanga Holdings Bhd slipped into the red in the third financial quarter ended Sept 30, 2015 (3QFY15) with a net loss of RM13.06 million or 1.8 sen per share, against a net profit of RM20.09 million or 2.74 sen a share a year ago, due to losses in its stockbroking, investment management, as well as money lending and financing segments.
Kenanga’s quarterly revenue declined 25.4% to RM125.37 million, from RM168.05 million a year ago.
The poor performance in 3QFY15 resulted in the group incurring a net loss of RM6.25 million or 0.86 sen a share for the nine month period ended Sept 30, 2015 (9MFY15), from a net profit of RM27.25 million a year ago, according to the announcement to Bursa Malaysia today. Its accumulative revenue dropped by 9.2% to RM400.87 million, from RM441.46 million in 9MFY14.
The group attributed its drop in revenue to a decline in brokerage fee income, which was a result of lower trading value on Bursa Malaysia; and lower management fee income from its investment management division, which was adversely impacted by volatilities and uncertainties in the market.
Damansara Realty Bhd, which saw its net loss widen to RM4.24 million or 2.54 sen per share in its third financial quarter ended Sept 30 (3QFY15), from RM1.75 million a year ago, has secured the contract for the proposed development of Perumahan Penjawat Awam 1Malaysia (PPA1M) and the commercial part of a mixed development at Presint 5, Putrajaya, which carries a total estimated gross development cost of RM467.31 million.
In a filing with Bursa Malaysia today, the property developer said Putrajaya Corporation (PJC) awarded the job to its wholly-owned subsidiary Damansara Realty (Johor) Sdn Bhd, via a letter of award dated today.
Damansara Realty said it would construct 1,350 PPA1M units (675 units of 1,000 sq ft and 675 units of 1,200 sq ft) and 45 units of six-storey shop offices. The contract is for a period of 30 months.
The property developer said the contract is expected to contribute positively to its earnings for the financial period ending Dec 31, 2016 (FY16) and beyond.
Meanwhile, its 3QFY15 net loss widened due to higher employee benefit and higher depreciation.
This is the second consecutive quarterly loss after the property developer registered a net loss of RM3.71 million or 1.42 sen per share in 2QFY15.
Revenue inched up 9.4% to RM50.63 million, from RM46.28 million last year, due to higher revenue recognition from property development.
For the cumulative nine months (9MFY15), Damansara Realty's net loss widened to RM2.66 million or 1.29 sen per share, from RM162,000 or 0.14 sen per share last year; revenue for the period came in 4.6% higher at RM154.21 million, from RM147.44 million in 9MFY14.
Managepay Systems Bhd (Mpay) has accepted a letter of intent from Oversea-Chinese Banking Corp Ltd (OCBC) to provide terminal services to the bank's merchants.
The electronic payment specialist announced to Bursa Malaysia today that its subsidiary MPay International had, also today, accepted a letter of intent (LoI) from OCBC dated Nov 25 to negotiate a proposed arrangement, whereby MPay International will be appointed as vendor for the bank's project, 'OCBC MPOS PinPad Terminal Programme for Bank Leased Merchant and Merchant Leased Merchant'.
Under the project, it would provide certain services to OCBC, including the rental of its MPOS PinPad Terminal to the bank's merchants, and the provision of installation/deployment and maintenance services to the same.
Karex Bhd’s net profit soared 74% year-on-year to RM22.29 million or 3.34 sen per share for the first quarter ended Sept 30, 2015 (1QFY16), from RM12.83 million or 2.11 sen per share, mainly due to a gain in foreign exchange (forex), higher margin products and lower raw material prices.
The group registered a forex gain of RM12.13 million for 1QFY16, versus the RM699,000 recorded in 1QFY15, its filing to Bursa Malaysia today showed.
Revenue for the quarter rose 8% to RM76.09 million, from RM70.13 million a year earlier, which it attributed to higher volume from its condom commercial sales segment.
HeiTech Padu Bhd has secured a contract worth RM39.5 million to develop passport and visa issuance systems for the Myanmar's Ministry of Foreign Affairs.
In a filing with Bursa, HeiTech Padu said it had entered into an agreement with Diamond Palace Co Ltd for the supply, delivery, installation, configuration, testing, commissioning and maintenance of the passport issuance system (PIS) and visa issuance system (VIS) for the Myanmar government.
The contract is for five years, from 2015 to 2020. HeiTech Padu expects the contract to have a positive effect on its earnings per share.
Carlsberg Brewery Malaysia Bhd’s net profit grew 11.03% to RM62.49 million or 20.44 per share in the third quarter ended Sept 30, 2015 (3QFY15), from RM56.28 million or 18.41 sen per share a year ago, mainly driven by higher sales contribution from Singapore and effective cost management.
Revenue, however, was down 0.9% to RM405.66 million, from RM409.32 million.
In a filing with Bursa, Carlsberg said after adjusting for the revenue impact of the divestment of Luen Heng F&B Sdn Bhd (LHFB), underlying revenue grew 4.5% for the quarter.
While its Malaysian operations recorded a decline in revenue of 10% to RM263.2 million due to revenue impact from the LHFB divestment, its Singapore business continued to gain traction. Revenue grew by 21.8% to RM142.5 million, while operating profit improved by 80.4% to RM36 million.
Carlsberg also noted that the improved result was driven by higher sales volume, effective cost control, and increase in contribution from the Maybev Pte Ltd acquisition, as well as the strengthening of the Singapore dollar against the ringgit.
For the nine months period (9MFY15), Carlsberg posted a net profit of RM141.43 million or 46.26 sen per share, a decline of 4.86% from RM148.65 million or 48.62 sen per share.
Iskandar Waterfront City Bhd (IWCity), which reported a fivefold improvement in net profit for the third quarter ended Sept 30, 2015 (3QFY15), said it has received a notice from Pentadbir Tanah Johor Bahru for the compulsory acquisition of two parcels of land by the state government for RM170.1 million.
In an announcement to the exchange, the company said its wholly-owned subsidiary, Tebrau Bay Sdn Bhd, has accepted the offer for the two lands in Plentong, Johor, measuring a combined 92.83 acres.
“The said land acquisition by the state government will result in a profit of approximately RM69.3 million for IWCity Group, and accordingly will increase the earnings per share and net tangible asset per share of IWCity by 10.35 sen,” said the company.
Meanwhile, the company reported a 406% surge in its net profit for 3QFY15 to RM20.82 million or 3.11 sen per share, from RM4.12 million or 0.61 sen per share a year earlier, primarily on compulsory land acquisitions by the state government.
Revenue for the quarter improved significantly to RM148.47 million, from RM25.49 million.
For the nine months ended Sept 30 (9MFY15), net profit soared 206% to RM17.21 million, from RM5.625 million in the previous year’s corresponding period; while revenue jumped 40% to RM175.33 million, from RM124.89 million.
Felda Global Ventures Holdings Bhd (FGV), the world's biggest crude palm oil producer, plans to start new discussions to buy a stake in Indonesia's PT Eagle High Plantations in the first quarter, after aborting an earlier plan for a US$680 million (RM2.4 billion) deal.
Bearish crude palm oil prices and a weakening ringgit "forced us to renegotiate the deal," chief executive officer Mohd Emir Mavani Abdullah said in an interview in Kuala Lumpur on Monday.
"Indonesia is still very important to us, compared to other countries."
Felda and Eagle High reached a preliminary agreement on June 12 for a 37% stake and planned to announce a final pact by mid-August, a deadline that has since been extended twice to the end of November. Since the first deal, the ringgit has fallen 12%, while crude palm oil prices have fallen 6.9%.
Felda and Eagle High are still keen to pursue a deal and renegotiation will involve issues such as the size of the stake, pricing and the partnership in areas such as research and development, Mohd Emir said, declining to be specific. Both parties may re-start discussions in the first quarter, when "there is more certainty" on market conditions, he said.
Taliworks Corp Bhd will sell 50% of its equity interest in wholly-owned subsidiary Pinggiran Muhibbah Sdn Bhd (PMSB), which has a majority stake in the concessionaire which operates and maintain the New North Klang Straits Bypass Expressway (NNKSB), to the Employees Provident Fund Board (EPF), for RM66.75 million.
The NNKSB, previously known as Shapadu Highway, is a 17.5km two-lane dual carriageway highway, which links North Port to Bukit Raja.
In its filing to Bursa Malaysia today, Taliworks said it had entered into a joint venture (JV) arrangement via a share sale and purchase agreement (SPA) with EPF and its wholly-owned unit Pinggiran Ventures Sdn Bhd, to dispose of the 50% stake in PMSB.
The group is expected to realise a gain on disposal of approximately RM57.07 million, or an earnings per Taliworks share of approximately 4.7 sen, from the proposed JV.
(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.)