Top Glove, CIMB, RHBCap, MRCB, Quill Capita, GDEX, Ge-Shen, IFCA MSC, KSL, AmFIRST REIT, IRCB and REDTone

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KUALA LUMPUR (Jan 8): Based on corporate announcements and newsflow today, the companies that may be in focus on tomorrow (Friday, Jan 9) could include the following: Top Glove Bhd, CIMB Group Holdings Bhd, RHB Capital Bhd (RHBCap), Malaysian Resources Corp Bhd (MRCB), Quill Capita Trust (QCT), GD Express Carrier Bhd (GDEX), Ge-Shen Corp Bhd, IFCA MSC Bhd, KSL Holdings Bhd, AmFIRST Real Estate Investment Trust (AmFIRST REIT), Integrated Rubber Corp Bhd (IRCB) and REDTone International Bhd.

Top Glove Corp Bhd is keeping its 10% net profit and revenue growth forecast for the financial year ending Aug 31, 2015 (FY15), even though its chairman Tan Sri Lim Wee Chai recognises a double-digit growth rate would be more difficult to achieve, amid higher operating costs.

Lim said achieving a double-digit growth rate will be a challenge, as labour cost has escalated. However, the group aims to offset higher labour cost in FY15, with increased automation.

Top Glove shares remained unchanged at RM4.58 today, giving it a market capitalisation of RM2.84 billion.

Bloomberg, quoting unnamed sources, reported CIMB Group Holdings Bhd and RHB Capital Bhd (RHBCap) are considering changing the terms of the proposed merger that would create Malaysia’s largest banking group.

Quoting the sources, Bloomberg said RHB investors may oppose the all-stock deal, after CIMB shares tumbled 24% as of today’s close, since the transaction was announced in October. RHB shares dropped 14% in the same period.
 
The report also stated the banks may need to renegotiate terms of what could become the nation’s biggest-ever merger, after both reported lower earnings in the most recent quarter.

CIMB shares closed up 4 sen or 0.76% today to RM5.29, resulting in a market capitalisation of RM44.6 billion; whilst RHB shares closed up 21 sen or 2.88% to RM7.51, arising to a market capitalisation of RM19.3 billion.

Malaysian Resources Corp Bhd (MRCB) and Quill Capita Trust (QCT) have mutually agreed to extend the completion of the sales and purchase of Platinum Sentral between both parties, by a further three months to April 9, 2015, a filing to Bursa Malaysia revealed this evening.

In a deal first mooted in January 2014, MRCB has proposed to dispose Platinum Sentral to QCT for a total consideration of RM750 million, in exchange for RM486 million cash, as well as 206.25 million new units in QCT at an issue price of RM1.28 per unit.

QCT was not traded today. It was last traded at RM1.20 on Jan 7, with a market capitalisation of RM468.16 million, whilst MRCB closed up 2 sen or 1.85% to RM1.10, with a market capitalisation of RM1.94 billion.

GD Express Carrier Bhd (GDEX) has proposed to undertake a private placement of up to 10% of its issued share capital to raise up to RM227.12 million, at an illustrative issue price of RM1.58 per placement share.

In a filing with Bursa Malaysia today, GDEX said the proceeds from the private placement will be used for working capital (RM65 million), capital expenditure (capex) and business development (RM161.42 million), and estimated expenses in relation to the proposed exercise (RM700,000).

Prior to the proposed private placement, GDEX had proposed to undertake a 3-for-1 bonus issue and a 5-for-1 warrants issue, as well as a dividend reinvestment plan (DRP) on its final dividend of 1.125 sen per share.

GDEX shares closed up 6 sen, or 2.93% today to RM2.11, rising to a market capitalisation of RM1.89 billion.

High precision plastic components manufacturer Ge-Shen Corp Bhd said its controlling shareholders will try placing out some shares within six months, in order to comply with the public shareholding spread requirement.

Based on the Register of Depositors as at Dec 31, 2014, the public shareholding spread of Ge-Shen is 22.83%, which represents a shortfall of 2.17% from the minimum percentage of 25% of the total issued and paid-up share capital.

Ge-Shen said its controlling shareholders will endeavour to place out their shares within 6 months, to comply with the public shareholding spread; and the company will also apply to Bursa Malaysia for an extension of 6 months, to rectify the shortfall in the public shareholding spread.

The stock closed at 55.5 sen today, up 1.5 sen or 2.78%, rising to a market capitalisation of RM44.4 million.

IT outfit IFCA MSC Bhd saw its shares gaining interest, having risen to an intra-day high of 83 sen in the afternoon trading session, and had eased to close at 82.5 sen, up 11 sen or 15.38%, with a market capitalisation of RM396.20 million. Some 36.67 million shares were transacted today.
 
IFCA, described by analysts as one of the major beneficiaries of the goods and services tax (GST) implementation and consultation works, had said in a filing to Bursa Malaysia on Dec 30, 2014, that its former chief financial officer Chow Chee Keng had been redesignated to "head a new business unit in training education services of the company".

While IFCA did not elaborate on the new business unit, it said Chow has extensive experience in financial management, group accounting, taxation, treasury management, corporate planning and notably “GST training”.

Similarly, Johor-based property developer KSL Holdings Bhd also saw its share price rise as much as 18 sen or 10.4% to RM1.91 in the afternoon trade today, after the group had an announced an interim dividend of 10% or 5 sen per share for its financial year ended Dec 31, 2014 (FY14), before easing to close at RM1.89 today with a market capitalisation of RM1.49 billion. Some 3.02 million KSL shares were traded today.  

In an earlier filing with the local bourse, KSL said the issue price of the new shares in KSL, to be issued pursuant to the dividend reinvestment plan (DRP), has been fixed at RM1.57 per share, a substantial discount to its current market price.

The ex-date for the dividend will be on Jan 27, while the entitlement date falls on Jan 29 and the payment date will be on Feb 25, with the new KSL shares arising from the DRP to be listed on the Main Market of Bursa on Feb 26.

AmFIRST Real Estate Investment Trust (AmFIRST REIT) has appointed Wong Khim Chon as its new CEO and executive director effective today, whilst its acting CEO Zuhairy Md Isa has been redesignated as deputy CEO.

In a filing with Bursa Malaysia, AmFIRST REIT said Wong, 55, was the senior general manager—property of Hap Seng Land Sdn Bhd, before his appointment at AmFIRST REIT, and was then in charge of Hap Seng Land’s property management and sales and marketing department.

Previously, he was also in senior management positions in IGB Corporation Bhd and Great Eastern Life Assurance (M) Sdn Bhd.

AmFIRST REIT closed down 0.5 sen or 0.55% today to 91 sen, giving it a market capitalisation of RM624.63 million.

Two new substantial shareholders, Lau Eng Guang and Brian Lau Joo Kien, have emerged in Integrated Rubber Corp Bhd (IRCB), following the acquisition of a total of 78.2 million shares in the company on Jan 5.

According to Bursa filings, Eng Guang holds a direct interest of 9.72 million shares or a 2.25% stake, based on IRCB's issued and paid up capital of 433 million shares. He also has an indirect interest of 68.5 million shares or 15.82%, by virtue of his shareholding in Keen Setup Sdn Bhd. Brian Lau is also deemed indirectly interested in PN17-status IRCB, via Keen Setup.

IRCB shares closed down 1.5 sen or 2.27% to 64.5 sen today, giving it a market capitalisation of RM279.29 million.

REDTone International Bhd has entered into a joint venture and shareholders agreement XS21 Wireless Sdn Bhd (XS21), for the provision of high capacity wireless connectivity services, through a proposed new joint venture company, a filing to Bursa Malaysia revealed today.

The initial issued and paid up share capital for the JV company shall be RM100,000, divided into 100,000 ordinary shares of RM1.00 each in accordance with the terms of the agreement, and to be held in the proportions of 60% and 40% by REDTOne and XS21 respectively.

REDTone was up 1 sen or 1.38% today to 73.5 sen, with a market capitalisation of RM378.1 million.