KUALA LUMPUR (July 11): Based on corporate announcements and news flow today, stocks that may draw attention on Thursday (July 12) include: Sentoria, MCE, KESM, DNeX, G3 Global and Handal Resources.
Sentoria Group Bhd has bought 150 acres of land in Morib, Kuala Langat in Selangor for RM20.25 million, to be used for development purposes.
Sentoria said its wholly-owned subsidiary Sentoria Morib Bay Sdn Bhd had on July 10 inked a sale and purchase agreement with Seriemas Development Sdn Bhd for the acquisition.
Property development firm Seriemas is wholly owned by PNB Development Sdn Bhd, which in turn is wholly owned by Permodalan Nasional Bhd.
The purchase price comprises RM2.97 million for water theme park land (22 acres), resort and convention centre land for RM5.13 million (38 acres), Safari Park land for RM10.53 million (78 acres) and a boutique hotel land for RM1.62 million (12 acres).
Sentoria said the land acquisition will be financed via a bank borrowing of RM13.5 million, with the balance RM6.75 million to be settled with internal funds.
MCE Holdings Bhd has secured a second contract from Proton Holdings Bhd this year to supply various electronics components and mechatronic parts for new car models over a nine-year period.
Without disclosing the value of the contract, MCE said in a stock exchange filing that the contract will generate a total revenue of RM105 million, while the estimated total investment cost to be incurred will be at RM800,000.
MCE said the contract will commence in the fourth quarter of financial year ending July 31, 2019.
KESM Industries Bhd has announced a higher interim dividend of 12.5 sen per share for the financial year ending July 31, 2018.
"Our company has done well. The strategies and investments we have made are creating long-term value," said chairman and chief executive officer Sam Lim. "Our free cash flow has increased and the board has proposed an increase in interim dividend of 92% compared to 2017."
The dividend, totalling an aggregate payment of RM5.4 million, will be paid on Aug 17, the group said in a statement.
The Malaysia Competition Commission (MyCC) has proposed to fine Dagang Net Technologies Sdn Bhd, a subsidiary of Dagang NeXchange Bhd, RM17.4 million for abusing its position as a monopoly in the provision of trade facilitation services under the National Single Window.
"The investigation on Dagang Net was commenced pursuant to complaints received by the Commission. The investigation has provisionally found that Dagang Net had abused its dominant position by refusing to supply new and/or additional electronic mailboxes to end users who utilized front-end software from software solutions providers which were not considered to be Dagang Net's authorised business partners," said MyCC in a statement.
This is an infringement of Section 10(1), read together with Section 10(2)(c) of the Competition Act 2010.
MyCC said it has proposed to impose a financial penalty of RM17.4 million, as well as to have Dagang Net cease and desist its infringing conduct and any future conduct which may disrupt competition in the present and future market.
Additionally, it has proposed that the directors and senior management of Dagang Net and its related companies undergo a competition law compliance program within three months of the issuance of the proposed decision.
Apparel manufacturer G3 Global Bhd has teamed up with two American companies to venture into a car cloud platform across Asean markets as part of its expansion into the Internet of Things (IoT).
G3 Global said its wholly-owned subsidiary Atilze Digital Sdn Bhd has entered into a joint venture (JV) agreement with US-based Gosuncn Welink (USA) Technology Co Ltd and Prospect Industry LLC, and this would eventually lead to the incorporation of a JV company between the three parties in Malaysia.
Under the agreement, Atilze will hold 55% of the JV company, while Welink and Prospect will own 30% and 15% respectively.
Atilze will fund its RM55,000 investment in the JV company via internally generated funds.
G3 Global said the JV is in line with the company's plans to collaborate with a leading provider of a software platform as it is needed to operate the connected car cloud platform and mobile application solutions to undertake the IoT business.
Handal Resources Bhd's 51%-owned subsidiary Handal Simflexi Sdn Bhd has entered into an initial stage of technology collaboration with Petroliam Nasional Bhd's (Petronas) research and development arm Petronas Research Sdn Bhd to develop subsea technology solutions.
Petronas Research had issued the letter of award to Handal Simflexi.
"The duration of the contract is for a fixed period commencing from 13th June 2018 until 12th August 2018. The details of the scope of works in relation to the contract are in accordance with the detailed scope of works and deliverables as provided under the contract, as stated in the letter of award and R&D collaboration agreement term sheet between Petronas and HSSB (Handal Simflexi).
"The contract rates to be charged for the services to be rendered will be in accordance with the payment terms and conditions as detailed in the term sheet that the service is being provided during the tenure of the contract. The contract is expected to contribute positively towards the earnings and net assets of the company for the duration of the contract," Handal Resources said.