KUALA LUMPUR (Oct 25): Based on corporate announcements and news flow today, stocks in focus tomorrow (Wednesday, Oct 26) may include: Vizione, Willowglen MSC, Globetronics, IGB REIT, Nestle, Tanah Makmur, MNC Wireless, Daiwa Securities, Affin Hwang Investment Bank Bhd (AHIB) and Affin Holdings.
Vizione Holdings Bhd posted a net profit of RM121,000 in the first quarter ended Aug 31, 2016 versus a net loss of RM833,000 a year ago, mainly due to discontinuation of loss-making electronic manufacturing services, after it sold Singatronics (Malaysia) Sdn Bhd on Jan 29.
Revenue, however, slid to RM8.6 million, from RM10.25 million.
The group expects its on-going construction works in Tawau and Kota Belud to contribute positively to the earnings of the group, moving forward.
And with the favourable outlook for the Program Perumahan Rakyat (PPR) projects, the group views its venture into PPR projects as promising, and wishes to increase its involvement in such projects.
Its current orderbook, which consists solely of construction projects, stands at RM140 million and will sustain the company for two years, according to chief financial officer Simon Lim. Property is expected to account for 20-30% of the group’s revenue stream, going forward.
Willowglen MSC Bhd has bagged two contracts worth RM10.81 million from SP Power Assets Ltd, Singapore, through its wholly-owned subsidiary, Willowglen Services Pte Ltd.
In a filling with Bursa Malaysia today, Willowglen said both contracts are for the design, supply and installation of Radio Frequency Identification (RFID) System to Transmission Cable Tunnels. The first contract is valued at RM8.43 million, while the other is valued at RM2.37 million.
The commencement date of the first contract is on Oct 24, 2016, and will be completed by July 8, 2025; while the other contract will commence on October 2016, and be completed by Nov 30, 2024.
Globetronics Technology Bhd's net profit dropped 55% to RM9.15 million in the third quarter ended Sept 30, 2016 (3QFY16), from RM20.49 million in 3QFY15, as it saw lower year-on-year sales and recognised RM3.03 million foreign exchange (forex) loss.
Revenue for the quarter fell 40% to RM52.46 million, from RM88.71 million in the previous year. The group said sales from both its Malaysia and Singapore segments were lower year-on-year.
Going forward, Globetronics said it expects similar performance in the following quarter, with business and product loading to gradually recover in the financial year ending Dec 31, 2017 (FY17).
IGB Real Estate Investment Trust (IGB REIT)'s net property income rose 4.9% to RM89.37 million in the third quarter ended Sept 30, 2016 (3QFY16), from RM85.17 million a year ago, mainly due to higher rental income.
Its distributable income for 3QFY16 amounted to RM78.53 million or 2.25 sen per unit, consisting of realised profit of RM68.8 million and the non-cash adjustment arising mainly from manager fee payable in units of RM8.3 million. This is higher than the distributable income of RM74.71 million or 2.12 sen per unit a year ago.
Its net profit increased 5.6% to RM68.77 million in 3QFY16, from RM65.13 million in 3QFY15; while revenue grew 4.1% to RM125.88 million, from RM120.96 million during the same period under review.
Going forward, IGB REIT said it would continue to strengthen its performance by exploring asset management initiatives at both Mid Valley Megamall and The Gardens Mall, to maintain a stable flow of distributable income and create long-term value for its unitholders.
Nestle (M) Bhd reported a 10% drop in third quarter net profit from a year earlier, on the food and beverage company's higher operating expenses. Operating expenses rose on higher promotional cost.
Nestle said net profit fell to RM160.71 million in the third quarter ended Sept 30, 2016 (3QFY16), from RM179.16 million; while revenue rose to RM1.26 billion, from RM1.22 billion.
It also declared a dividend of 70 sen a share for the period.
"Based on our cautiously optimistic outlook for the Malaysian economy, we will continue with our ‘Fuel the Growth’ strategy: Striving for efficiency increases all over the supply chain and reinvesting the realised improvements into the sustainable growth of the company by innovating/renovating our portfolio and intensifying our trade and consumer promotions," the company said.
Tanah Makmur Bhd's major shareholder, the Tengku Mahkota of Pahang Tengku Abdullah Sultan Ahmad Shah, has upped his takeover offer for the company to RM1.90 apiece, from RM1.80 earlier. The revised terms value Tanah Makmur at RM756.5 million.
In a bourse filing, the property-cum-plantation player said Tengku Abdullah and the parties in concert with him collectively hold 271.06 million shares or a 68.08% stake in Tanah Makmur as at Oct 24, 2016. Of this total, Tengku Abdullah owns 50.84 million or 12.77% of Tanah Makmur shares.
It said the revised takeover offer represents a premium of 29.25% and 34.08% to Tanah Makmur's last closing share price and five-day volume weighted average market price, including April 22, respectively.
The latest offer price of RM1.90 per share is 1.78 times over its price to book value and is higher than its net asset per share of RM1.07 as at Dec 31, 2015.
On April 25, Tengku Abdullah had proposed to privatise the company by way of a selective capital reduction (SCR) and repayment exercise at RM1.80 apiece. Tanah Makmur would then apply for a de-listing.
MNC Wireless Bhd said it will convene a meeting to discuss the proposed removal of its directors, following the receipt of a notice of intention to remove five of them from TA Nominees (Tempatan) Sdn Bhd, and Lee Koh Yung, who were acting on the instruction of Metronic Global Bhd.
Metronic is MNC Wireless’ largest shareholder, with a direct 18.75% stake as of Oct 5.
The parties serving the notice seek to remove MNC Wireless’s chairman Wong Kok Seong, chief executive officer and executive director Christopher Tan Chor How, executive director Pang Siaw Sian, independent non-executive director Thu Soon Shien, and non-independent non-executive director Kua Khai Shyuan.
Nga Koo Koy, Eric Boon Chuan Kit, Ng Wee Peng, Tan Kian Hong and Raja Aida Jasmin Raja Shahrome have been proposed to take their places on the board.
“The board of directors of MNC Wireless will convene a meeting to discuss the matter. In the interim, the company is also in the process of ascertaining whether the requisitionists hold not less than one-tenth of the issued and paid-up capital of the company,” it said in a filing.
Bank Negara Malaysia (BNM) has given the greenlight to Daiwa Securities Group Inc for its proposed acquisition of a minority stake in Affin Hwang Investment Bank Bhd (AHIB), the investment banking unit of Affin Holdings Bhd.
In a bourse filing today, Affin said the approval is subject to certain conditions, such as the finalisation of the shareholders agreement and related documentations to effect the proposal, in accordance with BNM’s approval.
Besides that, AHIB has also to obtain necessary approvals from other regulatory authorities, including the Securities Commission of Malaysia, with regards to the proposed change in shareholder.
“Affin and Daiwa Securities will review and deliberate on the terms and conditions of BNM’s approval towards the finalisation of the proposal. We will make further announcements on any subsequent development in due course,” it said.
The consideration and the size of the stake to be acquired by Daiwa Securities was not revealed, but a news report had said Daiwa is expected to spend more than 10 billion yen (about RM396 million) for an interest of approximately 20% in AHIB.
Talks began between Affin and Daiwa in May last year, after Affin announced that Bank Negara expressed it had no objection in principle to the negotiations. On Feb 29 this year, Daiwa agreed to acquire the stake in AHIB and submitted an application to BNM for approval.