KUALA LUMPUR (Feb 12): Based on corporate announcements and news flow today, companies that could be in focus tomorrow (Friday, Feb 13) could include: palm oil companies, AMMB Holdings Bhd, RHB Capital Bhd (RHBCap), Matrix Concepts Holdings Bhd, DiGi.Com Bhd, Tanjung Offshore Bhd, Hong Leong Capital Bhd (HL Cap), Kinsteel Bhd, Dialog Group Bhd, Petronas Dagangan Bhd (PetDag) and Latitude Tree Holdings Bhd.
Palm oil companies could see impact as Malaysia will resume its export duty regime for crude palm oil (CPO) next month, said Plantation Industries and Commodities Minister Datuk Seri Amar Douglas Uggah Embas, citing the export duty rate would be determined on Feb 16 (next Monday).
Malaysia had imposed a zero export duty on CPO from Sept 14, 2014, to end-February this year, to boost CPO exports and reduce inventories, with an aim to prop up local CPO prices.
While this had brought relief to the industry which was bogged down with low CPO prices since mid-last year, the resumption of export duty for CPO could bring impact to plantation players.
AMMB Holdings Bhd recorded a decrease in revenue for the third quarter ended Dec 31, 2014 (3QFY15), falling 11.4% to RM2.13 billion, from RM2.41 billion a year ago.
In the same quarter, the banking group saw its net profit remaining flat, increasing only 0.2% to RM416.65 million, from RM415.83 million a year earlier.
For the cumulative nine month period, Ambank’s revenue had fallen 3.4% to RM6.93 billion, while net profit increased 6.1% to RM1.4 billion.
RHB Capital Bhd (RHBCap) said its group managing director Kellee Kam has tendered his resignation, although Kam will remain in his current post until the end of the transition period, the date of which will be announced later.
The bank said in a statement today, that there is a succession plan in place.
Matrix Concepts Holdings Bhd saw its net profit risen 39% to RM56.53 million or 12.4 sen a share for the fourth financial quarter ended Dec 31, 2014 (4QFY14), due to better product mix in the property development segment, complimented by higher sales recognition for its residential and industrial properties.
The Seremban-based property developer also declared a fourth interim dividend of 5.25 sen per share and a special dividend of 1.25 sen per share for the financial year ended Dec 31, 2014 (FY14), payable on April 9, 2015. This brings total dividends of 17.33 sen per share, with pay outs totalling RM77.2 million for FY14.
For the 12 months period (FY14), Matrix Concepts posted a record net profit of RM182.61 million, from RM151.56 million in FY13; while revenue was 4.3% higher at RM598.29 million, from RM573.5 million.
DiGi.Com Bhd announced today that it has appointed its current chief operating officer (COO) Albern Murty as the company's new chief executive officer (CEO), effective April 1, 2015.
Murty will replace current CEO Lars-Åke Norling, who will assume the role as CEO of dtac (Total Access Communication PCL), which is Telenor Group's business unit in Thailand. Telenor Group is a 49% shareholder of DiGi.
Tanjung Offshore Bhd’s director Tan Sri Datuk Tan Kean Soon, who has been suspended from the company's board due to alleged breaches of fiduciary duty, has filed his intention to remove three directors from the board of the oil and gas services provider.
In a filing to Bursa Malaysia today, Tan and two persons acting in concert, have given special notice of their intention to do so, and proposed an extraordinary general meeting to be called for the removal of the three directors with immediate effect.
Meanwhile, Tanjung (fundamental: 1.95; valuation: 1.8) announced it has appointed a new chief executive officer, Rahmanudin Md Shamsudin, who also happens to emerge as the company's single largest shareholder.
According to a filing with Bursa today, Rahmanudin had acquired some 37.18 million shares, representing a 9.99% stake in Tanjung, yesterday (Feb 11). Following the purchase, Rahmanudin's shareholding has exceeded Lembaga Tabung Haji's (LTH) 8.25% stake. LTH was previously the single largest shareholder.
Hong Leong Capital Bhd (HL Cap) will have its shares suspended effective March 3, in relation to not meeting the public shareholding spread of 25%, unless it files an appeal on or before Feb 23.
In a filing this evening, Bursa Malaysia Securities Bhd said it has commenced enforcement proceedings against HL Cap for breach of paragraph 8.02(1) of the Main Market listing requirements, and due process was accorded to HL Cap.
According to a filing dated Jan 13, HL Cap said it had filed an appeal with Bursa Securities for approval of a lower public spread of 18.67% and alternatively, for a further extension of time of six months to comply with the 25% public shareholding spread requirement.
However, its appeal had been rejected by the regulator.
Kinsteel Bhd and its subsidiary Perfect Channel Sdn Bhd (PCSB) has entered into a Memorandum of Agreement (MOA) with Vibrant Holdings Sdn Bhd, and Beijing Industrial Designing and Researching Institute of China (BIDR), on a proposal to transform PCSB’s steel manufacturing operations in Gurun, Kedah into a more profitable concern.
Under the MOA announced by Kinsteel (fundamental: 0; valuation: 1.2) today, Vibrant and BIDR, being the turnkey contractor, would consider participating in PCSB via the out-right purchase of the plant, or through enhancing the plant with the objective of making the Gurun operation more viable.
The said enhancement project entails new investment plans for PCSB’s businesses, including the installation of new blast furnace facilities and related downstream manufacturing facilities and related infrastructural work, to upgrade and enhance the capacity of the manufacturing operation at the Gurun plant.
“The turnkey contractor has made a proposal to PCSB for the enhancement project, with an approximate value sum of RM200 million,” Kinsteel said.
Dialog Group Bhd’s executive chairman Tan Sri Ngau Boon Keat and parties connected to him, have placed out a total of 85.6 million shares or a 1.7% stake in the company, to certain institutional investors.
Ngau and the parties intend to mainly utilise the net proceeds from the placement, to exercise their current holdings of up to 108.33 million warrants into ordinary shares of Dialog.
Upon conversion, the ordinary shares represent approximately 2.1% of the enlarged total paid-up share capital of Dialog, while the total interest of Ngau and parties connected to him, will be 1.18 billion shares or approximately 23.3% of the enlarged total paid-up share capital of the group.
The net effect of the placement and conversion of warrants by Ngau and parties connected to him, will be the increase in the working capital of Dialog.
Petronas Dagangan Bhd (PetDag) saw its net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) plunge 99.7% to RM445,000, from RM151.32 million a year ago, mainly due to a decrease in sales volume and average selling price.
Revenue for 4QFY14 dropped 11% to RM7.45 billion, from RM8.39 billion in 4QFY13.
Nevertheless, the group declared a special dividend of 22 sen per share for the quarter, payable on March 27.
For the full year (FY14), PetDag's net profit fell 38.2% to RM501.57 million, from RM811.75 million the previous year, due to lower gross margin attributed to the steep decline in global crude oil prices.
Revenue fell slightly by RM924,000 to RM32.34 billion from FY13, largely due to the decrease in sales volume. EPS for FY14 was lower at 50.5 sen, from 81.7 sen in FY13.
Latitude Tree Holdings Bhd’s net profit for the second quarter ended Dec 31, 2014 (Q2FY15) increased 44.4% to RM27.4 million or 28.19 sen per share, despite a marginal 2.5% climb in revenue to RM189.1 million.
For the six months period ended Dec 31, 2014, the group posted a net profit of RM44.05 million — an increase of 31.19% from the same period a year earlier. Revenue was mostly flat at RM364.82 million, from RM361.49 million previously.
Latitude (fundamental score: 2.1; valuation score: 1.8) said it will continue to take a cautious approach in its business strategy, especially in managing rising labour costs.
(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.)