KUALA LUMPUR (Sept 25): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Sept 28) could include the following: PNE PCB, Talam Transform, CME, Mieco Chipboard, Destini, SYF Resources, HCK Capital, Xingquan and Teck Guan.
PNE PCB Bhd dropped its private placement exercise after assessing the current market conditions. The company announced on Bursa Malaysia today that it has retracted its application for an extension of time to complete the implementation of the proposed private placement.
Earlier, PNE proposed a private placement of up to 6.57 million new ordinary shares of RM1 each in PNE, representing up to 10% of the issued and paid up share capital of PNE.
The private placement exercise was aimed to raise working capital for the group’s existing business.
Talam Transform Bhd posted a net loss of RM11.99 million or 0.28 sen per share for its second financial quarter ended July 31, 2015, a big contrast to a net profit of RM6.86 million or 0.47 sen per share in the previous corresponding quarter.
In its results announcement to Bursa Malaysia, the property company attributed its net loss position to lower proceeds from the sale of development lands as well as lower other operating income and finance income and a provision for impairment of land held for development.
Meanwhile, revenue plunged 87.3% to RM10.92 million from RM86.04 million previously due to lower proceeds from the sale of development lands.
Going forward, the group said that its joint venture projects are ongoing, and it has also submitted new development plans on various parcels of land which will be launched once approvals are obtained from the relevant authorities.
CME Group Bhd is suing its former joint-venture partner Ruark No 11 Pty Ltd (Ruark) for AU$2.115 million following the termination of their partnership.
CME, together with its wholly-owned subsidiary CME Properties (Australia) Pty Ltd (CMEPA), has served a writ and indorsement of claim — filed in the Supreme Court of Western Australia dated Sept 21 — against Ruark today.
Nevertheless, in lieu of the sum, CME and CMEPA are willing to accept an account of the loan monies received by Ruark or paid out to third parties by Ruark, according to CME’s filing to Bursa Malaysia today.
This alternative has to come with an order for the payment by Ruark to CME and CMEPA of the amount found due to them under their joint venture agreement (JVA).
The other alternative is for Ruark to declare that the JVA was validly terminated by CME and CMEPA and that Ruark has defaulted on the JVA and that pursuant to the terms of the JVA, the development relating to the joint venture now vests in CME and CMEPA.
Alternatively, it seeks damages suffered on account of Ruark’s breaches of the JVA and the termination of the JVA, together with other interest, costs and other relief deemed fit by the court.
Mieco Chipboard Bhd is selling its wholly-owned unit Mieco Wood Products Sdn Bhd, which is principally engaged in reforestation, for RM35 million in cash to repay borrowings and for additional working capital.
Mieco said that it has inked a conditional sale and purchase agreement with Anjakan Kekal Sdn Bhd, which is engaged in the cultivation of rubber trees, for the entire issued and paid-up capital of Mieco Wood.
The sale is expected to fetch a disposal gain of RM34.95 million that will boost the basic earnings per share by 16.65 sen, the chipboard maker said in its filing with Bursa Malaysia today.
Mieco Wood has forest management rights on about 10,000 acres in Kemasul, Pahang, for no more than 60 years with an initial approved period of 30 years.
Barring unforeseen circumstances, the proposed sale is expected to be completed within four months from the date of the execution of the agreement, said Mieco.
Destini Bhd is buying the remaining 49% stake it does not own in Vanguard Composite Engineering Pte Ltd, for S$3.5 million cash to improve the latter’s business performance and, in turn, its profit contribution to the Destini Group.
Destini holds a 51% stake in the company through its wholly-owned subsidiary Destini Armada Pte Ltd.
Destini announced through Bursa Malaysia today that it had entered into a share sale agreement with vendor Ng Tuck Whye on Sept 23, for the proposed acquisition.
Vanguard is principally engaged in the provision of the manufacturing of lifeboats, hyperbaric lifeboats, fast rescue boats and life rafts.
As at Dec 31, 2014, Vanguard’s net tangible asset (NTA) stood at S$4.8 million.
This means that the purchase consideration of S$3.5 million for the 49% stake is equivalent to a 33% premium to the NTA of Vanguard.
SYF Resources Bhd’s net profit for the fourth quarter ended July 31, 2015 almost doubled to RM10.13 million or 1.66 sen per share from RM5.27 million or 1.92 sen per share a year ago, lifted by the contribution from its property development segment.
The group’s revenue jumped 80% to RM114.9 million from RM63.86 million in the previous year. This was attributable to the significant revenue increase in the property development segment as construction progressed and more deals closed.
Revenue was boosted by higher board sales as a result of improved production capacity and higher rubber wood furniture exports due to a stronger US dollar.
For the full financial year ended July 31, SYF’s net profit came in at RM24.94 million or 5.01 sen per share, 15% higher from RM21.7 million or 7.93 sen per share in the previous financial year. Annual revenue grew 14% to RM316.24 million from RM277.13 million previously.
The group says that it foresees challenging operating conditions on the back of gradual improvement in the US economy.
HCK Capital Group Bhd, formerly known as Golsta Synergy Bhd, saw three of its founders resign today, 19 months after current executive chairman Tan Sri Clement Hii Chii Kok’s takeover offer.
Filings with Bursa Malaysia today revealed that Teng Swee Eng, Dai Kuang Yen and Liow Teck Eng have all resigned from the position of executive director.
Before Hii’s takeover offer, the company was mainly involved in the manufacturing and supply of industrial machinery and undertook related engineering projects.
After Hii’s takeover exercise, the company diversified into property development, hospitality and media.
Xingquan International Sports Holdings Ltd has proposed a renounceable rights issue with warrants to raise RM50.71 million to buy machinery.
In a filing with Bursa Malaysia today, the group said the proposed rights issue entails the issuance of up to 253.55 million shares on the basis of one rights share for every two existing shares held.
The rights issue came together with up to 84.52 million free detachable warrants on the basis of one warrant for every three rights shares subscribed.
The entitlement date will be determined later by the board, it said.
Based on the indicative issue price of 30 sen per right share and exercise price of 40 sen for each warrant, Xingquan expects to raise up to RM50.71 million from the corporate exercise, which will be used for purchasing machinery (RM49.71 million).
Teck Guan Perdana Bhd is back in the black with a net profit of RM2.59 million, or 6.45 sen per share, for its second quarter ended July 31, 2015. A year ago, it recorded a net loss of RM1.86 million or 4.65 sen per share.
Revenue jumped to RM66.09 million from RM45.69 million in the previous year.
In a filing with Bursa Malaysia, the group said that its palm oil products segment saw a 46% rise in revenue during the period, posting a RM4.81 million operating profit instead of a RM990,000 net loss in the previous year.
“The increase was mainly attributed to the increase in operating margin and also a favourable currency exchange rate of the ringgit versus the US dollar,” said Teck Guan, adding that it saw higher sales volume during the quarter.
(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.)