KUALA LUMPUR (June 25): Based on corporate announcements and news flow today, stocks in focus for Tuesday (June 256) may include the following: Serba Dinamik Holdings Bhd, Grand-Flo Bhd, Euro Holdings Bhd, Malaysia Building Society Bhd, MB World Group Bhd, D&O Green Technologies Bhd, Kelington Group Bhd, Gabungan AQRS Bhd and NTPM Holdings Bhd.
Serba Dinamik Holdings Bhd secured about RM465.1 million worth of new contracts involving operations and maintenance (O&M) besides engineering, procurement, construction and commissioning (EPCC) projects via wholly-owned subsidiaries Serba Dinamik Sdn Bhd (SDSB) and PT Serba Dinamik Indonesia.
Serba Dinamik said SDSB secured seven O&M contracts and one EPCC contract, while Serba Dinamik Indonesia clinched three O&M contracts and two EPCC projects.
The contracts involve projects in Malaysia, Indonesia, Bahrain, Kazakhstan and the United Arab Emirates. Among the clients it clinched the jobs from were Petronas Dagangan Bhd, Petronas Carigali Sdn Bhd and Pertamina Balikpapan Hospital.
Tracking solutions provider Grand-Flo Bhd sees the information technology (IT) business picking up post the 14th general election (GE14) with stronger earnings expected, fueled by positive consumer sentiment.
Its president Derrick Tan Bak Hong is bullish on the group's earnings this year, driven by its IT segment as consumer sentiment turns more positive and with more clarity, following GE14.
Euro Holdings Bhd is eyeing up to 15% growth in revenue for the financial year ending Dec 31, 2018 (FY18), mainly driven by its property development segment.
Group managing director Datuk Seri Jeffrey Choong Yuen Keong said the anticipated top line growth will come from Euro's ongoing RM180 million property project Damai Vista in the Klang Valley.
Choong said about 75% of Damai Vista will be ready and handed over to buyers by the first quarter of 2019. Today, Choong said Euro should see about 60% of sales realised in FY18.
Non-bank lender Malaysia Building Society Bhd (MBSB) aims to convert its conventional assets worth about RM1 billion, which makes up about 10% of its assets, to Islamic assets over the next two years, as part of its plans to becoming an Islamic bank.
President and chief executive officer Datuk Seri Ahmad Zaini Othman said the conventional assets include home mortgage loans.
Ahmad Zaini said the group is now in the integration stage to further boost its operation by putting in place a single platform for internet banking.
As part of its digital transformation journey, Ahmad Zaini said the board has approved about RM250 million investment over the next 15 to 24 months to build up its digital capabilities and it plans to launch fintech capabilities in partnership with third parties providing better customer banking experience.
MB World Group Bhd plans to develop a 6.26-acre land in Johor, a project that comprises 406 units of apartments worth RM176 million in gross development value, after securing the developmental rights to the land from its owner.
According to MB World, its wholly-owned MB Max Sdn Bhd has inked a development rights agreement with Shiya Sdn Bhd, which owns the freehold land that is made up of 76 plots in Sierra Perdana, Johor Bahru.
MB World said it opted for the DRA as opposed to an outright land bank purchase, as the latter “will require significant cash outlay”. In granting MB World developmental rights and all claims to the land, Shiya will get a RM24 million entitlement from the deal.
D&O Green Technologies Bhd is spreading its wings into Japan, as it seeks to increase its market share in the country’s light-emitting diode component markets after it was granted approval to incorporate Dominant Opto Technologies Japan K.K, a wholly-owned subsidiary of its 89.79%-owned Dominant Opto Technologies Sdn Bhd.
D&O, which sells optoelectronics and semiconductor products catering for the automotive industry, said the Japanese subsidiary will have an initial issued and paid-up capital of one million yen (RM36,155), sourced from internal funds.
The subsidiary will carry out activities that include the merchandising of semiconductor components such as wholesale and retail of semiconductor devices, electronic components, electrical equipment for lighting, electronic display screen and lighting fittings.
Integrated engineering solutions provider Kelington Group Bhd has secured new orders worth RM104 million, bringing the group’s accumulated value of new orders secured year-to-date to RM181 million.
It said the new orders were primarily from the Ultra High Purity (UHP) segment for Kelington to provide specialised engineering services for the semiconductor and electronics companies. Most of the new contract wins were from Malaysia followed by Singapore, China and Taiwan.
On top of projects carried forward from the previous year, the group's total outstanding order book now stands at RM285 million.
Gabungan AQRS Bhd has proposed to undertake a bonus issue of Warrants B on the basis of one Warrant B for every four existing shares held to reward existing shareholders and to raise additional working capital, when Warrants B are exercised in future.
The property developer and construction outfit said the actual number of Warrants B to be issued pursuant to the proposed exercise will depend on the total number of issued Gabungan AQRS shares as at the entitlement date.
Assuming full exercise of Warrants B at the illustrative exercise price of RM1 per Warrant B, and up to 142.34 million new Gabungan AQRS shares issued, the company could potentially raise maximum gross proceeds of RM142.34 million.
Higher raw material cost continued to drag down the net profit of NTPM Holdings Bhd, which fell 86.8% to RM1.18 million for the fourth financial quarter ended April 30, 2018 (4QFY18) from RM8.95 million a year ago.
Quarterly revenue, however, was up 3.3% to RM164.52 million from RM159.25 million in 4QFY17, mainly due to the increase in sales of tissue and personal care products.
The group also proposed a final dividend of 0.8 sen per share for the financial year ended April 30, 2018 (FY18), which will be recommended to the shareholders for approval at the forthcoming annual general meeting.