KUALA LUMPUR (Aug 12): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Thursday, Aug 13) could include: AirAsia, Super Enterprise, PUC Founder, Affin, Barakah Offshore, Malaysia Smelting, Perisai Petroleum, Syarikat Takaful, Press Metal, Landmarks, Hong Leong, Daibochi, Ancom, Wing Tai, Nestle, Karex and MyEG.
 
AirAsia Bhd stands by its decision to operate from Kota Kinabalu International Airport's (KKIA) terminal two, said AirAsia group chief executive officer Tan Sri Tony Fernandes.

Fernandes said this in response to Malaysia Airports Holdings Bhd’s (MAHB) urging that AirAsia (fundamental: 0.2; valuation: 1.4) move its operations to KKIA's terminal one (T1) to consolidate passenger services into a single terminal.

Fernandes said moving to T1 will increase cost for passengers and with the tremendous competition in the region, it will kill tourism.

Nasdaq-listed Multi-Color Corp’s (MCC) takeover offer for Super Enterprise Holdings Bhd (SEH) became unconditional, after it obtained more than 90% of the company’s voting shares.

In a filing with Bursa Malaysia today, Super Enterprise said MCC’s indirect wholly-owned subsidiary MCC LABL2 Netherlands BV — which launched the takeover offer on June 17 at RM3.80 per share or RM158.4 million in total — has received valid acceptances for 37.87 million shares or 90.87% in the company.

The offer became unconditional as of Tuesday (Aug 11). Its closing date and time for acceptance was extended till Aug 26.

Super Enterprise (fundamental: 2.2; valuation: 1.4) manufactures product decorating and labelling solutions, and sale of labelling machines.

PUC Founder (MSC) Bhd is bidding for more renewable energy quota from theSustainable Energy Development Authority (SEDA) next year, as part of their energy diversification exercise.

Its managing director Cheong Chia Chieh said they will bid for the 50 Megawatt (MW) quota made available by SEDA next year and may purchase others’ unutilised quota.

Their bidding price depends on how much they can get from the irredeemable convertible unsecured loan stocks (ICULS) scheme.

If the ICULS scheme is fully subscribed PUC Founder will be able to raise up to RM127.59 million - where RM106 million would be used to build 15MW capacity power plants.

PUC Founder (fundamental: 1.85; valuation: 1.7) is also looking to explore other renewable energy businesses, such as biogas.

Affin Holdings Bhd said it is getting a RM6 million discount (2.3% of the RM261 million market value) for the RM255 million (RM4,699 per sq ft) it is paying for the 54,266 sq m land at Tun Razak Exchange, from debt laden 1Malaysia Development Bhd (1MDB).

The land was independently valued at RM261 million as at April 3, it noted.

Affin (fundamental: 1.1; valuation: 2.25), controlled by Lembaga Tabung Angkatan Tentera, said in its filing today that they needed a new headquarters, as they have been renting their current head office for the past decade.

The group expects the construction of the 35-storey building to commence no later than 12 months from the date the title is registered under Affin, to complete by Dec 31, 2019.

Barakah Offshore Petroleum Bhd has bagged a two-year contract worth an estimated RM30 million from Petronas Carigali Sdn Bhd, to provide cleaning pig and associated services in East Malaysia.

In a filing with Bursa today, Barakah (fundamental: 1.95; valuation: 0.3) said its wholly-owned subsidiary PBJV Group Sdn Bhd has received the letter of award from Petronas Carigali.

The actual contract value, however, depends on the actual work orders issued by Petronas Carigali during the tenure.

The contract also carries a one-year extension option to June 25, 2018.

Malaysia Smelting Corp Bhd (MSC) narrowed its losses by 49% to RM14.91 million in the second quarter 2015 (2QFY15), compared with last year’s RM28.83 million, as revenue expanded on higher sales of refined tin.

Revenue came in at RM452.98 million, up 5% from RM431.71 in the preceding quarter, according to its filing to Bursa today.

However, it announced a loss before tax from continuing operations of RM19.2 million for 2QFY15, compared with a profit of RM6 million in the same period last year, due to a significant increase in the non-cash adjustments linked to the unfavourable valuation of its Butterworth smelter’s closing stock of in-plant inventory.

A major portion of this inventory is recirculating stock in the smelting operations; and a downward adjustment in inventory value pegged to lower tin prices has contributed to the bulk of its losses in 1HFY15.

MSC's (fundamental: 0.55; valuation: 0.3) earnings were also affected by the negative impact of foreign currency translation, due to ringgit depreciation.

Its cumulative first half 2015 (2HFY15)’s net loss expanded 25% to RM17.8 million, from last year’s RM14.2 million; while 1HFY15 revenue dropped 3% to RM834.62 million, from RM860.81 million last year.

Perisai Petroleum Teknologi Bhd’s net profit jumped 66.5% on-year to RM1.6 million or 0.13 sen per share in the second quarter ended June 30, 2015 (2QFY15), from RM961,000 or 0.08 sen per share, on higher revenue and better contributions from joint ventures, as well as foreign exchange gains.

Its 2QFY15 revenue grew more than four times to RM53.66 million, from RM10.78 million in 2QFY14, on revenue generated by its jack-up drilling rig and Perisai Pacific 101.

But Perisai  (fundamental: 0.65; valuation: 1.1) revealed it is exploring the possibility of deferring taking delivery of a second jack up rig until it secures a rig contract for it, as demand for offshore assets within Southeast Asia has softened, due to capital expenditure cuts among exploration and production companies.

Meanwhile, in its cumulative six months (1HFY15), Perisai Petroleum returned to charting a net profit of RM8.64 million or 0.72 sen per share, as compared to a loss of RM2.03 million or 18 sen per share in 1HFY14; while revenue leapt to RM110.39 million, from RM21.65 million previously.

The group attributed the improved earnings to drilling operations which began in August 2014 with the new jack-up drilling rig Perisai Pacific 101 (PP 101), a higher share of contributions from joint ventures and associates, higher forex gain and higher finance cost.

Syarikat Takaful Malaysia Bhd's net profit for the second quarter ended June 30, 2015 (2QFY15) declined 8.2% on-year to RM38.95 million, from RM42.44 million previously, mainly on lower surplus transfer from both family and general takaful.

Earnings per share fell to 4.78 sen from 5.21 sen, according to its filing to Bursa today.

Syarikat Takaful (fundamental: 1.05; valuation: 2.4)’s latest quarterly revenue came in at RM433.53 million, up a marginal 2.1% from RM424.81 million in 2QFY14.

In the first half of FY15 (1HFY15), it’s net profit was RM85.17 million or 10.45 sen per share, up 9.9% from RM77.52 million or 9.52 sen per share a year ago, mainly on higher wakalah fee income.

Revenue in 1HFY15 also improved 16.2% to RM995.99 million, as compared with RM856.83 million in 1HFY14, on higher sales from both family and general takaful business, and higher net investment income.

Press Metal Bhd’s net profit for the second quarter ended June 30, 2015 (2QFY15) plunged nearly 59% to RM24.73 million or 1.91 sen per share, from RM60.03 million or 11.57 sen per share last year, on unrealised foreign exchange (forex) losses.

Press Metal (fundamental: 0.95; valuation: 2) said the sharply lower earnings was due to a RM50.5 million unrealised forex losses recorded for the quarter under review, arising the group's US dollar-denominated loans.
 
Revenue for the quarter was down 5.27% to RM947.26 million, from RM1 billion a year ago, on lower sales from its Samalaju Smelting Plant, after it shutdown in May due to a fire.  

The group declared a second interim dividend of 1.5 sen, payable on Sept 10.

For the cumulative six months (1HFY15) ended June 30, Press Metal posted a net profit of RM67.86 million or 5.43 sen per share, representing nearly 23% lower versus RM88.06 million or 17.03 sen per share last year.  

Revenue was up 5.26% to RM2 billion, from RM1.9 billion a year earlier.  

Excluding the assets impairment loss, forex loss and unrealised derivatives gain, the adjusted profit before tax (PBT) would be RM111 million, versus RM80.9 million last year.  

Property developer and resort operator Landmarks Bhd narrowed its net loss to RM3.77 million for the second quarter ended June 30, 2015, against a net loss of RM7.03 a year ago.

Quarterly revenue dropped by 0.77% to RM11.59 million, from RM11.68 million in 2QFY14, Landmarks said in a filing to the Bursa today.

For the six months ended June 30, Landmarks' (fundamental: 1.2; valuation: 0.9) net loss declined slightly to RM5.31 million, from RM5.43 million last year; while cumulative revenue grew 5.5% to RM30.9 million, from RM29.3 million a year ago.

For the six-month period, Landmarks said the resort and destination development division recorded an operating loss of RM9.29 million, compared with RM9.19 million in the corresponding period of 2014.

The higher net loss was mainly due to the pre-operating expenses for Phase 1, Chill Cove, Treasure Bay Bintan, it added.

Hong Leong Bank Bhd (HLB) has proposed to undertake a renounceable rights issue to raise up to RM3 billion for the group’s working capital and banking purposes.

Meanwhile, its parent Hong Leong Financial Group Bhd (HLFG) which owns 64.23% of HLB, is also making a cash call to raise money to subscribe to its banking arm’s proposed rights issue.

In the filing to Bursa, HLFG said based on its direct shareholdings of 64.23% in HLB and the intended gross proceeds of up to RM3 billion to be raised from its consumer banking arm’s rights issue, the capital outlay required by HLFG to fully subscribe its entitlements is expected to be about RM1.9 billion.

On HLB’s (fundamental: 2.8; valuation: 2.2) proposed rights issue, the bank said the entitlement basis is assumed to be nine rights shares for every 55 HLB shares held by shareholders.

The bank also said the issue price for the shares have not been fixed at this juncture.

In a separate filing, HLFG said the entitlement basis is assumed to be three rights shares for every 34 HLFG shares held by shareholders.

It also said the issue price is assumed to be RM11.84, which represents a discount of RM3.28 or 21.69% to the TERP of RM15.12, based on the five-day VWAMP of HLFG shares, up to and including the LPD of RM15.41.

The proposed rights issue will enlarge HLFG’s issued and paid-up share capital to 1.15 billion shares, from 1.05 billion shares.

Flexible packaging manufacturer Daibochi Plastic and Packaging Industry Bhd’s net profit rose 15.7% to RM7.19 million in its second quarter ended June 30(2QFY15), from RM6.22 million a year ago, on higher export sales and a favourable product mix.

Its latest quarterly revenue came in 3.1% higher at RM89.67 million, from RM86.98 million in 2QFY14, according to its filing with Bursa Malaysia today.

Daibochi (fundamental: 1.7; valuation: 1.1) also declared a second interim single tier dividend of 4 sen per share, in respect of the financial year ending Dec 31, 2015 (FY15), payable on Sept 29. The stock will go ex-dividend on Sept 3.

Its cumulative six months (1HFY15)’s net profit came in at RM13.38 million, up 4.34% from RM12.82 million a year ago.

1HFY15’s revenue, however, slipped 0.87% to RM175.83 million, from RM177.37 million a year ago.

Ancom Bhd’s wholly-owned subsidiary Redberry Sdn Bhd (RSB) has entered into a share sale agreement with Ng How Han for the acquisition of 654,330 shares or 51% interest in Redberry Solutions Sdn Bhd (formerly known as Will & Henry Marketing Sdn Bhd) for RM650,000 cash.

In a filing with Bursa, Ancom (fundamental: 0.55; valuation: 1.8) said the acquisition of Redberry Solutions, which is involved in “the marketing of credit cards and also as commission agents, event organiser and other related activities”, would be synergistic to RSB’s subsidiary.

On completion of the transaction, the shareholders of Redberry Solutions will be RSB (51%), Ng How Han (29%) and Chai Hann Lin (20%).

The acquisition is not expected to have any material effects on the earnings to the Ancom Group for the financial year ending May 31, 2016.

Property developer cum apparel retailer Wing Tai Malaysia Bhd’s net profit in its fourth quarter ended June 30, 2015 (4QFY15) fell 41.8% to RM17.3 million or 5.46 sen per share, from RM29.7 million or 9.44 sen per share a year ago, as revenue was considerably weaker.

Its latest quarterly revenue has more than halved to RM66.5 million, from RM146.6 million, according to its quarterly report to Bursa today.

Wing Tai said lower revenue from the property development division was mainly attributable to the sale of Plaza DNP in FY14, and lower revenue recognition for its Verticas Residensi project in the current financial year.

Its profit margins from the retail segment also came under pressure from higher import cost due to weaker ringgit, compounded by weaker consumer spending.

Despite weak financials, Wing Tai (fundamental: 1.05; valuation: 2.4) recommended a first and final dividend of 3 sen per share for the financial year ended June 30 (FY15), amounting to RM14.2 million (FY14: 5 sen per share, with a special dividend of 2 sen per share; totaling RM22 million).

Meanwhile, for the full FY15, Wing Tai’s net profit declined a marginal 1.52% to RM69.6 million or 22.06 sen per share, from RM70.7 million or 22.49 sen per share; while revenue fell 27.2% to RM316.3 million against RM434.6 million in FY14.

Separately, Wing Tai announced it has appointed Christopher Chong Lye Sun, 48, as its new chief financial officer to replace Lee Kong Beng, 64, who has resigned to pursue other interests.

Nestle Malaysia Bhd (Nestle)'s profit rose 5% to RM123.9 million in its second quarter ended June 30 (2QFY15), from RM118.48 million a year ago, on lower costs and cheaper raw material prices.

However, revenue shrank 10% to RM1.14 billion, from RM1.27 billion last year, on weaker consumer spending post-implementation of the goods and services tax (GST), which saw its domestic sales slide 2%. Overall, exports were also lower by 5%.

Nestle (fundamental:1.75; valuation: 1.5) declared an interim dividend of 65 sen per share, which amounted to a payout of RM152.43 million, payable on Sept 10. The stock will go ex-dividend on Aug 26.

Meanwhile, its cumulative six months (1HFY15)’s net profit rose 3% to RM311.78 million, from RM302.01 million a year ago, on a healthier profit structure, lower costs and cheaper raw material prices.

However, Nestle’s revenue for its first half 2015 (1HFY15) dropped 5% to RM2.42 billion, from RM2.54 billion last year, again mostly due to weaker consumer spending.

The world’s largest condom manufacturer Karex Bhd has proposed to purchase loss-making company Medical-Latex (Dua) Sdn Bhd (MLD) from Beiersdorf Aktiengesellschaft AG for RM13 million cash.

Karex told Bursa that the acquisition, expected to be completed by early October, will be financed by the proceeds raised from its private placement exercise completed in March this year.

Separately, Karex said MLD and Beiersdorf have signed an original equipment manufacturing and supply agreement to appoint MLD as the exclusive manufacturer of all condoms for Beiersdorf and its subsidiaries.  

Presently, MLD manufactures Beierdorf’s condom brands, such as Duo and Harmony.  

MLD, which has been manufacturing condoms since 1987, also owns the brand ESP, which is growing in the retail market of Singapore and Malaysia.

MyEG Capital Sdn Bhd, a wholly-owned unit of MyEG Services Bhd, has tied-up with Bridge Barn Media Sdn Bhd and Car X Services Sdn Bhd to expand MyEG’s dedicated automotives classified web portal, mymotor.com.my (MyMotor).

MyEG Capital currently has an 80% stake in Car X’s, while the remaining 20% is held by Bridge Barn’s shareholder, Jason Chan Ling Khee.

In a filing with Bursa, MyEG said MyEG Capital has entered into a shareholders agreement with Bridge Barn, Car X, Chan and Dr Ng Kee Aun to develop, manage and expand Car X, the company behind MyMotor.

The deal was primarily to bring Dr Ng, one of the directors of Bridge Barn, and the co-founder of Motor Trader magazine, on board Car X. MyEG thinks Car X would benefit from his expertise and established track record.

Under the agreement, MyEG Capital will reduce its stake in Car X to 55%, while Bridge Barn will take up 35%, and Chan will reduce his stake to 10%.

However, MyEG did not reveal the amount that Bridge Barn will have to pay for the stakes.

(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.)