Wong Engineering, Prestariang, Takaso, CBIP, F&N, EUPE and WCT

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KUALA LUMPUR (Jan 23): Based on corporate announcements and news flow today, the companies that may be in focus next Monday (Jan 26) could include the following: Wong Engineering Corp Bhd, Prestariang Bhd, Takaso Resources Bhd, CB Industrial Product Holding Bhd (CBIP), Fraser & Neave Holdings Bhd (F&N), EUPE Corp Bhd and WCT Holdings Bhd.

Wong Engineering Corporation Bhd (WECB) has proposed a 80:20 joint venture with Widad Builders Sdn Bhd (WBSB) to participate in the facility management contract for the JB Sentral building in Bukit Chagar, Johor Bahru, the company announced in a filing to Bursa Malaysia.

JB Sentral has been operating since 2009, as the transportation hub for Johor Bahru.

To undertake the contract, WECB (fundamental: 0.95; valuation: 0.6) would pay WBSB a participation fee of RM20 million, a refundable performance deposit of RM100,000, and meet the working capital needs of the JB Sentral contract for up to RM12 million within a period of 12 months.

In order to fund the contract, WECB has proposed a special issues of 27.5 million new shares, as well as a renounceable rights issue of up to 59.59 million new shares — on the basis of one-for-two, at 60 sen each. This would raise a total of RM52.25 million.  

The 27.5 million special issue shares alone, would represent approximately 30% of the issued and paid-up share capital of WECB. The shares are proposed to be placed out to Widad Business Group Sdn Bhd (WBGSB), a related company to WBSB. Holders of the special issue shares are also entitled to subscribe for the rights issue as well.

Prestariang Bhd’s wholly-owned unit, Prestariang Systems Sdn Bhd (PSSB), had on Jan 21 received the letter of award from the Minister of Finance (MoF) to provide Microsoft software under the “Master Licensing Agreement 2.0” (MLA) to all government agencies in Malaysia.

In a filing to Bursa Malaysia today, Prestariang (fundamental: 1.95; valuation: 0.9) said the contract is over the course of three years, effective from Feb 1, 2015 until Jan 31, 2018. The group did not provide any details on the value of the contract.

Private property developer OCR Land Holdings Sdn Bhd had acquired today, 15 million shares or a 7.6% stake in Takaso Resources Bhd.

In a filing with Bursa Malaysia, Takaso (fundamental: 1.25; valuation: 0.3) announced OCR had acquired the shares via direct business transaction, and raised its direct interest in Takaso to 13.88% or 27.5 million shares.

A separate filing showed Ong Kah Hoe is a substantial shareholder of OCR Land, and is a deemed interested party in the transaction.

Following the transaction by OCR, Ong is deemed to own a total of 19.05% indirect interest or 37.74 million shares in Takaso, on top of a 9.4% direct interest or 18.63 million shares in the baby products and condoms manufacturer.

CB Industrial Product Holding Bhd (CBIP) has received a contract worth RM31.32 million to supply a Modipalm mill to Thai Eastern Trat Co Ltd.

According to CBIP (fundamental: 3; valuation: 2.4), its responsibilities under the contract includes design, supply, fabrication, delivery to site, erection, testing, commissioning and guarantee of performance for construction of 30/45 metric tonnes per hour Modipalm Continuous Sterilization palm oil mill at Mueang Trat, Thailand.

CBIP said the contract is expected to contribute positively to its earnings for financial years ending Dec 31, 2015 and 2016.

Fraser & Neave Holdings Bhd (F&N) has renewed the manufacturing and distribution contracts with Swiss food giant Société des Produits Nestlé S.A for several dairy product brands.

“Consequently, F&N will continue to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal Milk and Milkmaid in Singapore, Thailand, Malaysia, Brunei and Laos, until 2037,” said F&N in a press release today.

F&N (fundamental:2.1; valuation: 0.9) has entered into agreements with Nestlé and Nestec S.A (Nestec), that extend the terms of its initial licences granted by both companies. The licences are for an initial period of 11 years and 7 months, with a right to extend for a term of 10 years until Jan 31, 2037; and may be renewed for a further five-year terms.

EUPE Corporation Bhd’s net profit increased 5.86% to RM3.43 million or 2.68 sen a share in its third quarter ended Nov 30, 2014 (3QFY15), despite revenue fallen by 22.44% to RM40.88 million.

For the cumulative nine months (9MFY15), net profit was down 14.62% to RM7.71 million, while revenue had dropped 1.43% to RM134.15 million.

The Kedah-based property developer attributed the weaker results to slower take-up rates of its ongoing projects.

EUPE (fundamental: 1.25; valuation: 1.2) expects market conditions to remain challenging in the near term but expects its performance can be sustained, in view of the on-going development projects and the level of work targeted to be completed.

WCT Holdings Bhd's plans to set up its first real estate investment trust (REIT), will likely take another year to realise, said its executive director Wong Yik Kae.

“Depending on market conditions, we have to find the right timing in order to launch the REIT,” he told reporters, after a signing ceremony to mark the appointment of New World Hotels & Resorts, to manage its soon-to-be-completed hotel dubbed "New World Hotel Petaling Jaya" here today.

The hotel is part of WCT’s (fundamental: 0.8; valuation: 1.8) RM1.8 billion Paradigm Integrated Commercial Development here.

(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. Go to www.theedgemarkets.com for more details on a company's financial dashboard.)