PETALING JAYA (July 20): Based on corporate announcements and news flow today, companies that could be in focus tomorrow (Tuesday, June 21) are: Sunsuria, Nexgram, Ire-Tex, Y&G, Kejuruteraan Samudra Timur, KKB and Kinsteel.
Sunsuria Bhd has announced an oversubscription of its rights issue by 14.05%.
The property developer had offered a total of 475.08 million new shares in Sunsuria at 80 sen per rights share on the basis of three new shares for every one share held, together with 158.36 million free warrants on the basis of one warrant for every three rights shares subscribed.
The company targets to raise RM433.49 million.
In a filing with Bursa Malaysia today, Sunsuria (fundamental: 2.5; valuation: 0) said as at the close of acceptance on July 10, 2015, it received applications for 541.86 million shares together with 180.62 million warrants representing an over-subscription of 14.05%.
It added that the over-subscription monies received totaling RM53.42 million will be refunded.
The rights shares and warrants are expected to be listed on Bursa Malaysia on July 27, 2015.
Nexgram Holdings Bhd’s wholly-owned subsidiary Nexgram Land Sdn Bhd has obtained the development order from the Sepang Municipal Council for the RM1.15 billion “Angkasa Icon City” project in Cyberjaya, according to Nexgram’s filing with Bursa Malaysia today.
To recap, Nexgram’s (fundamental: 1.95; valuation: 1.1) subsidiaries Nexgram Land and Nextnation Datacity Sdn Bhd had entered into an off-take cum sale and purchase agreement with MyAngkasa Bina Sdn Bhd in December last year, which would see Nexgram Land undertaking the Angkasa Icon City mixed commercial development project on 5.906 acres owned by Nextnation in Cyberjaya, Selangor.
The Cyberjaya project will be developed by Nextnation in three phases; the first phase is office and commercial lots, second phase will comprise shop office or virtual office, while the final phase will have service suites.
The development will then be sold by Nexgram Land and Nextnation to MyAngkasa Bina, a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd, for RM1.15 billion.
Ire-Tex Corp Bhd’s group managing director and co-founder Datuk Dr Yap Tatt Keat has ceased to be a substantial shareholder of the group, which manufactures a range of polymer-based protective packaging products.
In a filing with Bursa Malaysia today, it was revealed that Yap had on July 14, 2015 disposed 13.3 million shares representing a 10.68% stake in the company via an off-market disposal at 31 sen per share or a total of RM4.12 million, to US incorporated Ko Ltd Partnership.
After the disposal, Yap’s stake in Ire-Tex (fundamental: 0.55; valuation: 0.9) remains at 464,802 shares, or a 0.35% stake.
Ko Ltd is now a substantial shareholder of Ire-Tex with a 10.68% stake.
Y&G Corp Bhd is set to acquire a leasehold tract of 10.828 acres in Dengkil, Selangor, after signing a share sale agreement (SSA) to take over dormant firm Ikramin Sdn Bhd (ISB) for RM13.428 million cash — as ISB is acquiring the said land from a Selangor government agency.
In a filing with Bursa Malaysia, Y&G said its wholly-owned direct subsidiary Rukun Warisan Sdn Bhd (RWSB) signed the SSA with Ang Ah Buay and Zuraidi Aziz for the proposed acquisition of ISB today, which is currently inactive.
The land’s registered owner is Perbadanan Kemajuan Pertanian Selangor (PKPS) and it is categorised for agricultural use. As at June 30, 2015, the land’s unaudited net book value was RM978,034.
ISB had entered into a sale and purchase agreement dated July 19, 2002, and a supplemental agreement on March 18, 2015, with PKPS to acquire the tract.
Y&G (fundamental: 3, valuation: 2) said RWSB is proposing to construct a mixed development on the land.
However, as the development is subject to the planning, conversion of land use and the development approvals from the relevant authorities, Y&G is unable to ascertain the indicative gross development value of the project at this juncture.
Y&G said the proposed acquisition — to be satisfied by cash and funded by internally generated funds — is part of the group’s objective to increase its land bank to focus on its property development segment.
The acquisition is expected to be completed by the fourth quarter of the current financial year ending Dec 31, 2015 (4Q15) and to contribute positively to the group’s figures for the financial year ending FY16 onwards.
Oil and gas service provider Kejuruteraan Samudra Timur Bhd (KSTB) has exited the Practice Note 17 (PN17) status after Bursa Securities approved its upliftment and considered it a cash company.
In a filing with Bursa Malaysia, KSTB said Bursa Securities approved its application to be de-classified as a PN17 company given, and that the de-classification will take effect from tomorrow.
KKB Engineering Bhd has clinched two contracts worth RM14.6 million to supply fabricated steel structures and 14kg liquified petroleum gas (LPG) cylinders.
In a filing with Bursa Malaysia today, KKB Engineering (fundamental: 1.95; valuation: 1.4) said it has accepted the purchase orders from JGC (Malaysia) Sdn Bhd for the supply of fabricated steel structures for Petronas LNG Train 9 Project, and from Petron Malaysia Refining & Marketing Bhd for the LPG cylinders.
The completion date for the supply of fabricated steel structures to JGC is progressive until the third quarter of 2016, while the second contract is scheduled to be completed in October 2015.
The two purchase orders are expected to contribute positively to the earnings and net assets of KKB Group for the financial years ending Dec 31, 2015 to 2016, KKB Engineering added.
Kinsteel Bhd has disposed of 37.2 million units of seven-year 7% coupon redeemable convertible unsecured loan stocks (RCULS) 2012/2019 of Perwaja Holdings Bhd, representing 13.29% of the total issued RCULS of Perwaja, to non-related parties for a total cash consideration of RM9.3 million.
In a filing with Bursa Malaysia today, Kinsteel said the disposals were done on July 8, July 14 and July 16 this year.
Kinsteel (fundamental: 0; valuation: 0.3) said the Perwaja RCULS were originally acquired in March 2012 and the average carrying amount of Perwaja RCULS in the its books as at March 31, 2015 is about 15 sen per Perwaja RCULS.
The disposal is expected to result in a gain on disposal of approximately RM3.72 million based on the net carrying value of Kinsteel’s investment in Perwaja RCULS as at March 31, 2015 of RM31.5 million
Kinsteel said the disposal enables the group to raise funds for its working capital.
(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.)