KUALA LUMPUR (May 17): Based on corporate announcements and news flow today, stocks in focus on Thursday (May 18) may include: Seacera Group Bhd, Malaysian Resources Corp Bhd (MRCB), KKB Engineering Bhd, Ire-Tex Corp Bhd, Focus Lumber Bhd, Anzo Holdings Bhd, UEM Sunrise Bhd, Amway Malaysia Holdings Bhd, Hua Yang Bhd, Paramount Corp Bhd, Apex Healthcare Bhd, MyEG Services Bhd, SCH Group Bhd, Petra Energy Bhd, BIMB Holdings Bhd, Formosa Prosonic Industries Bhd, Classic Scenic Bhd, Priceworth International Bhd and Mah Sing Group Bhd.
Loss-making Seacera Group Bhd’s subsidiary Seacera Ceramics Sdn Bhd is acquiring a piece of land in Melaka with a warehouse erected on it for RM16.90 million from QM Sports Sdn Bhd.
Seacera plans to pay RM4.50 million in cash and the balance purchase consideration of RM12.4 million by issuing 8.86 million shares at RM1.40 apiece.
At RM16.9 million, Seacera is purchasing the land at RM99.76 per sq ft. As at end-2015, the 99-year old leasehold land, expiring in 2074, has an audited net book value of RM5.86 million.
Seacera said the property will serve as its warehouse and distribution hub for the southern region.
Malaysian Resources Corp Bhd (MRCB) has proposed a one-for-one renounceable rights issue to pare down its borrowings and to finance the refurbishment of the national sports complex in Bukit Jalil.
The cash call, which will be sweetened by free detachable warrants on one-for-five basis, will raise between RM2.17 billion and RM2.86 billion.
MRCB said the proceeds from the rights issue will be used to finance the refurbishment of the national sports complex in Bukit Jalil, besides paring down its borrowings and developing new property projects, as well as for general working capital.
MRCB plans to issue up to 2.86 billion in rights shares, together with up to 571.34 million free detachable.
KKB Engineering Bhd’s net loss narrowed by 24.6% to RM1.48 million for the first quarter ended March 31, 2017 (1QFY17), from RM1.96 million a year earlier.
Revenue meanwhile surged 93.7% to RM42.92 million, from RM22.16 million, thanks to improved topline from the group’s construction and steel pipes manufacturing divisions.
On outlook, KKB is cautious that the continued uncertainties in the global economic environment, escalation of costs due to inflationary pressure, volatility of global raw material steel prices and fluctuation of exchange rates, are among factors that may impact its performance.
Packaging materials manufacturer Ire-Tex Corp Bhd has lodged another police report against its non-independent and non-executive director Kong Hon Kay, this time in connection with possible breaches of Sections 245 (5) and (6) of the Companies Act 2016.
The two provisions deal with accounting records of a company, kept outside the country.
Ire-Tex said Kong, the legal representative of Suzhou Ire-Tex Sourcing Co Ltd, has failed to provide copies of financial records of Suzhou which are kept outside of Malaysia, despite the board's request to do so.
Focus Lumber Bhd posted a 88.92% increase in net profit in 1QFY17 to RM6.26 million or 6.06 sen per share, from RM3.31 million or 3.21 sen a year earlier.
It attributed increase in earnings to an improved production recovery rate and achieved lower production cost per cubic metre in the current quarter.
In 1QFY17, the company registered an unrealised foreign exchange loss of RM112,000, compared with RM2.58 million last year.
Quarterly revenue, however, was down 10.24% to RM47.83 million, from RM53.29 million a year ago, on lower sales volume, as well as lower selling price in U.S. dollar.
Going forward, Focus Lumber will continuously work towards improving the quality of its products and reducing average product cost, through investment in new machineries.
Anzo Holdings Bhd, a timber product maker and property developer, has reported profit after 16 consecutive loss-making financial quarters.
Anzo reported a net profit of RM1.27 million or 0.42 sen per share for 4QFY17, versus a net loss of RM3.84 million or 1.35 sen per share a year ago.
Anzo said the improvement was mainly due to construction billings from its Porto De Melaka project, amounting to RM5.7 million; reversal on provision for doubtful debts of RM1.3 million; and no further inventory write down in the current quarter.
The group’s earnings were backed by a revenue of RM7.58 million in 4QFY17, equivalent to 5.4 times higher than the RM1.4 million recorded in 4QFY16.
For the whole FY17, however, Anzo still reported a net loss of RM4.63 million, which was 57.37% narrower than its RM10.85 million of net loss back in FY16.
Its cumulative revenue doubled to RM12.26 million for FY17, from RM6.11 million in FY16.
Managing director Datuk Eddie Chai Woon Chet said Anzo’s current total construction order book of RM301 million to date, is expected to sustain its current momentum and meet its objective to turn profitable by FY18.
Former Telekom Malaysia Bhd’s group chief executive and managing director Tan Sri Zamzamzairani Mohd Isa will assume the role of UEM Sunrise Bhd chairman, effective tomorrow (Thursday, May 18).
Zamzamzairani will be replacing Tan Sri Dr Ahmad Tajuddin Ali, who will be retiring after chairing the property development company since September 2008.
Separately, UEM Sunrise announced a 20-fold jump in its net profit for the first quarter ended March 31, 2017 (1QFY17), on higher revenue from its development projects, and revision of estimated cost for completed ones.
Net profit for the quarter came in at RM61.27 million, compared with RM3.02 million a year ago, while revenue grew 110% to RM541.76 million, from RM257.75 million, thanks to higher progress of its property projects in Malaysia and Australia.
UEM Sunrise MD and CEO, Anwar Syahrin Abdul Ajib, said the company's strong results exceeded performances of its 1QFY16, 1QFY15 and 1QFY14, due to strong progress billings.
On prospects, it said the domestic property outlook is expected to be relatively subdued, trending at a flat, to slight sales growth.
Amway Malaysia Holdings Bhd reported a 48% drop in net profit to RM9.45 million in 1QFY17, from RM18.05 million a year ago.
Amway attributed its lower profitability to lower sales and higher import costs, mainly due to a weaker ringgit.
Quarterly revenue fell 22.5% to RM237.15 million, from RM305.94 million in 1QFY16, no thanks to a strong buy up the first quarter last year, ahead of the price increases effective February and April 2016.
Amway has declared a dividend of 5 sen per share.
Amway expects the remaining year to be extremely challenging, based on several factors that include a softer economic landscape arising from declining consumer spending and low consumer confidence, as well as the negative impact of foreign exchange on its margin.
Hua Yang Bhd registered a 56% fall in net profit in 4QFY17 to RM9.46 million, from RM21.32 million a year ago, as revenue shrank 37%.
Its Bursa Malaysia filing showed revenue retreated to RM80.68 million, from RM127.57 million in the same quarter last year (4QFY16), due to completion of three high-rise projects in Klang Valley — namely Metia Residences, Residensi Flora @ One South and Sentrio Suites.
The weaker earnings notwithstanding, the group proposed a final single tier dividend of two sen per share for FY17.
For the full FY17, net profit fell 45% to RM60.74 million, from RM110.07 million in FY16, as revenue declined 33% to RM385.36 million, from RM575.74 million.
Hua Yang expects the property industry's outlook to improve, although some uncertainties may still persist.
Paramount Corp Bhd’s net profit in 1QFY17 was 14% lower at RM8.29 million, compared with RM9.69 million a year ago, mainly due to absence of a one-off disposal gain from the sale of an apartment last year.
Revenue, however, grew 26% to RM142.94 million, from RM113.33 million in 1QFY16.
Although it experienced strong sales in 4QFY16 to continue into 1QFY17, Paramount said it expect a cautious property market in 2017.
Apex Healthcare Bhd's net profit in 1QFY17 rose nearly 3% to RM10.1 million, from RM9.81 million a share in the previous year.
Revenue was up by 4.9% to RM154.65 million, from RM147.48 million a year ago (1QFY16).
Notwithstanding unforeseen circumstances, Apex Healthcare expects the group to deliver another year of satisfactory performance for 2017.
Electronic government services provider MyEG Services Bhd has confirmed it is in negotiation to acquire a stake in popular food review website Eat Drink KL.
The company said the negotiation between its board of directors and existing shareholders of Eat Drink KL is currently ongoing and has not been finalised.
"However, the board will release further announcements once an agreement has been entered with all relevant parties, pursuant to the ongoing negotiation," it added.
This confirmed a report by The Edge Financial Daily today saying MyEG was close to sealing a deal to buy a controlling stake in Eat Drink KL.
SCH Group Bhd, which is involved in the supply of quarry equipment, plans to diversify into the downstream quarry industry through memoranda of understanding (MoUs) inked with three companies.
SCH said it has entered into three separate MoUs with Sewara Engineering Sdn Bhd, Stigma Impiana Sdn Bhd and Dataran 888 Sdn Bhd.
The purpose of the MoUs is to set forth the understanding between SCH and the parties regarding the exclusive collaboration on the excavation and removal, and subsequent distribution and sale of deposits.
After four straight quarterly losses, Petra Energy Bhd returned to the black in the first quarter ended March 31, 2017 (1QFY17), mainly due to profit from the services, and production and development segments.
The group posted a net profit of RM5.29 million or 1.65 sen per share in 1QFY17, compared with a net loss of RM7.08 million or 2.21 sen loss per share in 1QFY16.
Quarterly revenue came in 38.5% lower at RM69.6 million, from RM113.23 million a year ago.
The oil and gas (O&G) service provider said its services segment recorded higher pre-tax profit of RM6.6 million in 1QFY17, from RM3.7 million in 1QFY16.
BIMB Holdings Bhd is in the midst of reviewing its structure, its CEO Datuk Seri Zukri Samat said, with the group looking at various options, including divestment of its stake in Syarikat Takaful Malaysia Bhd and the transfer of listing to Bank Islam Malaysia Bhd.
Zukri revealed that the group is looking at restructuring, but said no decision has yet been made.
"We are reviewing the structure of BIMB and the best way to move forward. We are currently talking about the banks, the takaful business, as well as BIMB Securities Sdn Bhd," he said.
He explained that the group is considering the sale of its 60% stake in Takaful Malaysia, as well as the transfer of listing to Bank Islam, whilst it also eyes roping in a strategic partner for BIMB Securities.
Formosa Prosonic Industries Bhd's net profit in 1QFY17 surged over 11 times, on the back of higher sales and a gain on foreign exchange.
It posted a net profit of RM8.94 million, compared with RM793,000 in 1QFY16.
Revenue, however, only grew 9.2% to RM75.53 million, from RM69.17 million. Improved sales was due to higher orders from customers.
On prospects, Formosa said it is wary of the current economic climate that shows sluggish global economic growth and intensified competition.
Wood picture frame maker Classic Scenic Bhd is expecting a promising year for FY17, driven by the improving U.S. market outlook.
According to its executive director Simon Lim, the higher minimum wages in the U.S. and strengthening of the housing market there, as well as unemployment rate returning to pre-crisis levels, are positive indications for the group's outlook.
Coupled with the strengthening of the U.S. dollar, he said these positive indications from the U.S. give the group confidence in observing positive growth in its bottomline and topline for FY17.
Priceworth International Bhd's wholly-owned subsidiary Sinora Sdn Bhd will immediately start logging operations within Sabah's Forest Management Unit 5 (FMU5) in Trus Madi, following the approval of the state's authorities.
Priceworth said the Sabah Forestry Department had approved Anika Desiran Sdn Bhd's plan to undertake logging operations at FMU5's compartments 57 and 58.
Priceworth's wholly-owned unit GSR Pte Ltd is acquiring the entire stake in Rumpun Capaian Sdn Bhd from Transkripsi Pintar Sdn Bhd for RM260 million.
Mah Sing Group Bhd is buying a 1.42ha (3.56-acre) land fronting the Titiwangsa Lake Garden here for up to RM60 million cash, to undertake an estimated RM650 million condominium project.
In a statement to Bursa Malaysia today, Mah Sing said it is buying the freehold land along Jalan Beserah from Saw Shiuo Shyong @ Sonny Saw, for up to RM60 million.
The proposed development was indicatively priced from RM485,000 per unit, with built-up from 850 square feet, aiming to cater for first-home buyers, working professionals, young families and home upgraders seeking to live in the vicinity of the Kuala Lumpur City Centre and close proximity to public transportation, the statement said.