KUALA LUMPUR (March 25): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (March 26) could include: AirAsia, Media Prima, Public Bank, Eco World, Managepay, Poh Kong, Reach Energy, Tanjung Offshore, Imaspro, Paramount Corp and Progressive Impact.
AirAsia Bhd is appealing against the Malaysia Competition Commission’s (MyCC) earlier ruling that AirAsia and Malaysian Airline System Bhd (MAS) were guilty of anti-competition practices.
The ruling had led MyCC to impose a fine of RM10 million each on AirAsia (fundamental: 0.2; valuation: 0.6) and MAS.
AirAsia said in a statement today that court proceedings for the appeal would take place today (March 25) and tomorrow (March 26).
Meanwhile, Media Prima Bhd has fully redeemed its five-year redeemable fixed rate bonds of RM150 million.
Media Prima (fundamental: 1.65; valuation: 1.2) announced it had received confirmation today that its bonds were fully redeemed on Monday.
Its counter climbed 0.58% or 1 sen to close at RM1.72 today, giving it a market capitalisation of RM1.92 billion.
In a filing with Bursa Malaysia today, Public Bank Bhd said it had received approval from the State Bank of Vietnam to buy the remaining 50% stake it does not own in VID Public Bank (VPB) from the Bank for Investment and Development of Vietnam (BIDV).
Public Bank would buy the remaining stake for US$76.6 million (approximately RM245 million based on exchange rates in July 2014). Public Bank had then signed a conditional equity capital transfer agreement with BIDV for the planned transaction.
Public Bank said the acquisition of the balance 50% in VPB would transform VPB into a 100% foreign-owned bank in Vietnam.
Eco World International, an associate company of Eco World Development Group Bhd (fundamental: 0.50; valuation: 0.30), will be developing a 300-unit residential project in Paramatta, Sydney, in Australia.
Group president and chief executive officer Datuk Chang Khim Wah said the project would sit on a one-acre land, which has a gross development value of A$300 million.
"This development will be mainly apartments and will be launched sometime in the middle of this year," he said today.
This will be Eco World’s (fundamental: 0.5; valuation: 0.3) second foray into international markets, following its joint venture with Ballymore Group to develop three large scale residential projects in London.
ACE-listed Managepay Systems Bhd announced a private placement of up to 30% of its issued and paid-up share capital to third party investors that it has yet to identify, with the issue price fixed at 23 sen per share.
Managepay told Bursa (fundamental: 1.5; valuation: 1.5) that the issue price of 23 sen per share represents an 8.25% discount to its 5-day volume weighted average market price (VWAMP) of 25.07 sen, calculated from March 18 to March 24.
At the issue price of 23 sen per share, the group expects to raise a minimum of RM27.78 million, assuming none of its outstanding warrants are exercised prior to the private placement.
If all of its outstanding warrants are exercised, Managepay said it could raise a maximum proceed of RM40.41 million.
Poh Kong Holdings Bhd saw its net profit jump 496% to RM7.71 million or 1.88 sen a share for the second financial quarter ended Jan 31, 2015 (2QFY15), from RM1.29 million or 0.31 sen a share a year ago, on improved gross profit margin.
This was despite revenue for the quarter falling 4.6% to RM216.45 million, from RM226.91 million in 2QFY14, due to decreased demand for gold investment products and jewellery items.
Poh Kong (fundamental: 0.65; valuation: 1.2) said the improved earnings was due to improvement in gross profit margin during the quarter under review.
For the cumulative six months (1HFY15), Poh Kong's net profit grew 81.8% to RM10.79 million or 2.63 sen per share, from RM5.94 million or 1.45 sen per share a year ago.
Revenue increased a marginal 0.83% to RM410.41 million, from RM407.04 million in 1HFY14.
Going forward, Poh Kong said it would continue to consolidate its business, realign business strategies and undertake new initiatives to pursue sustainable growth and ultimately enhance profitability of the group.
Reach Energy Bhd, the largest special purpose acquisition company (SPAC) listed on the local bourse, saw its net loss for the six months ended Jan 31, 2015 (1HFY15) widen 95.28% to RM4.84 million, compared to RM2.48 million in the corresponding period last year.
Its revenue in 1HFY15 was RM12.31 million, primarily derived from profit earned from shariah-compliant fixed deposit placements, compared to RM67,000 in the previous corresponding period.
The company said it will only start generating operating income once it has completed its qualifying acquisition (QA). Its deadline for the QA is 2017.
Tanjung Offshore Bhd has withdrawn a legal suit against its director Tan Sri Tan Kean Soon and related parties.
In a press statement today, Tanjung Offshore (fundamental: 1.85; valuation: 0.60) said it has dropped the suit against Kean Soon, Muhammad Sabri Ghani Sabri, Datuk Harzani Azmi, HMS Oil & Gas Sdn Bhd, Datuk Nik Norzrul Thani N. Hassan Thani and Datin Norhafizah Mohd Nordin.
It added Kean Soon has dropped his suit against Tanjung Offshore’s legal adviser Datuk Seri Krishna Kumar Sivasubramaniam, independent non-executive director Shahrizal Hisham Abdul Halim, executive director Eric Tan Wee Koh, corporate finance head Joachim Tan Seow Hoe and corporate finance officer Khairil Annuar Mohd Said.
Meanwhile, Datuk Dr Yu Kuan Chon has emerged as a substantial shareholder in agriculture chemicals manufacturer Imaspro Corp Bhd with a 5.96% stake, after recently acquiring an additional 361,000 shares in the company.
In a filing with Bursa Malaysia today, Imaspro (fundamental: 1.45; valuation: 0.60) noted Yu acquired the 0.45% stake on March 17 this year, from the open market. The transacted price was not disclosed.
As a result of the latest acquisition, Dr Yu, who is also chairman and executive director of YNH Property Bhd, now owns 5.96% or a 4.76 million equity interest in the company.
Paramount Corp Bhd (fundamental: 1.6; valuation: 3) is gearing itself for an upturn of the property market’s mid-sized segment, as it prepares to launch a second township development in the Klang Valley, after its shareholders approved its RM227.4 million plan to buy 12 contiguous parcels of freehold land in Dengkil today.
This Dengkil development will be its second township after the 525-acre Kemuning Utama township in Shah Alam.
The proposed development is expected to commence in end 2015 or early 2016, and be completed over a span of eight years.
Progressive Impact Corp Bhd has bagged an extension of concession agreement for an interim period of one year, worth RM22 million, from the Ministry of Natural Resources and Environment (NRE).
In a filing with the local bourse today, the company said its wholly-owned subsidiary Alam Sekitar Malaysia Sdn Bhd had yesterday (March 24) received a letter from the ministry to notify them about the extension.
Progressive Impact (fundamental: 2.4; valuation: 1.2) said the extension of the contract, which is for the provision of environmental monitoring and data management activities, is to commence on April 14 this year and will end on April 13, 2016.
(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.)