KUALA LUMPUR (July 14): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Wednesday, July 15) could be the following: Asia Poly, OCK Group, Puncak Niaga, Tasco, Icon Offshore and AYS Ventures.

Asia Poly Holdings Bhd is acquiring 120,000 unit shares or 30% equity interest in FDL Technology Sdn Bhd (FDLTSB) for RM2.4 million, paving the way for the company to diversify into the information technology (IT) industry.

In a filing with Bursa Malaysia today, Asia Poly (fundamental: 0.55; valuation: 0.5) said the proposed acquisition will enable it to diversify its sources of income as well as to venture into IT business.

Asia Poly has entered into a sale and purchase agreement (SPA) with FDLTSB's shareholders Tan Tian Sin, Zakaria Jusoh and Then Hui Chan for the shares acquisition deal.

It said the RM2.4 million will be funded entirely by the company's internal generated fund.

According to its filing, the vendors have jointly guaranteed that FDLTSB shall achieve a profit after tax of no less than RM2.5 million for the financial year ending Dec 31, 2016 (FY16) and RM3.5 million for FY17.

OCK Group Bhd has proposed to undertake a renounceable rights issue with warrants to raise up to RM145.24 million for business expansion and working capital.

The amount is based on the indicative issue price of 50 sen per rights share and the exercise price of 73 sen a share for the warrants.

In a filing with Bursa, OCK (fundamental: 1.25; valuation: 1.4) said the proceeds raised from the corporate exercise will be used to fund its business expansion (RM130 million) and for working capital (RM12.89 million), which will be utilised within 24 months.

The remaining RM2.35 million will be used to cover expenses relating to the exercise.

Under the proposal, the telecommunications network services provider will issue up to 290.49 million new shares on the basis of one rights share for every two existing shares held. The warrants are on the basis of one warrant for every one rights share subscribed.

Upon the exercise, OCK's gearing ratio will be reduced to 0.13 times from 0.36 times.

Puncak Niaga Holdings Bhd has announced today that it has decided to extend the disposal of its water assets to Pengurusan Air Selangor Sdn Bhd (Air Selangor) by two months to Sept 14 — the seventh extension so far.

In a filing with Bursa, Puncak Niaga (fundamental: 1.9; valuation: 2.1) and Air Selangor had today mutually agreed on the further extension for the fulfilment of the conditions precedent stated in the conditional SPA dated Nov 11 last year.

"The board's decision is premised on the fact that both the federal and state government had executed the Supplemental Master Agreement on July 10," it added.

The supplementary agreement inked between the federal and state governments last Friday was to extend the deadline for the state's water asset consolidation exercise.

Under the SPA, Puncak Niaga will dispose of its entire equity interest in Puncak Niaga (M) Sdn Bhd, together with a 70% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to Air Selangor, for RM1.55 billion, cash.

Under the terms and conditions of the SPA, all conditions precedent were originally supposed to be fulfilled on Jan 12.

Tasco Bhd has proposed to undertake a share split involving the subdivision of every one existing Tasco share into two shares in the logistics company.

Pursuant to the proposed share split, the issued share capital of Tasco will be subdivided from RM100 million comprising 100 million Tasco shares of RM1 each into RM100 million comprising 200 million shares of 50 sen each.

Based on the market price of Tasco shares of RM3.76 as at July 13, 2015, being the last practicable date, the theoretical adjusted market price of the subdivided shares upon completion of the proposed share split is RM1.88.

In a filing with Bursa Malaysia today, Tasco said the proposed share split is expected to adjust the market price of Tasco shares and will result in the subdivided shares being more affordable, "which will enable a wider group of investors to participate in the growth of our company".

"The proposed share split is expected to enhance the marketability and trading liquidity of the shares of our company as a result of the increase in the number of shares in issue," it added.

Icon Offshore Bhd, which is 42.2%-owned by Ekuiti Nasional Bhd, has bagged two long-term contracts worth RM55 million from an oil major to supply two anchor handling tug/supply vessels (AHTs).

In a filing with Bursa Malaysia today, Icon Offshore said its wholly-owned subsidiary Icon Offshore Group Sdn Bhd has received two letters of award for the proposed jobs.

Under the contracts, the company is required to provide, among others, transportation of supplies from supply bases to drilling rigs/platforms and vice-versa to the oil major.

"The long-term contracts shall be effective from July 5, 2015 and shall continue for a period of two years, with an option for an extension of one year," Icon Offshore added.

It said the value of RM55 million is inclusive of the extension period, and is expected to contribute positively to the group's earnings and net assets for the financial year ending Dec 31, 2015 and beyond.

"The risks associated with the contracts are mainly operational risks, such as accidents and unexpected breakdown of vessels. In mitigating such risks, Icon Offshore carries out routine dry docking inspections, afloat repairs and regular maintenance, based on the group’s comprehensive preventive maintenance programme," it added.

AYS Ventures Bhd, which is in the trading and marketing of steel products and construction materials, is hopeful of a better financial year amid a challenging global economic outlook.

AYS group managing director Oh Chiew Ho said demand for building materials is expected to improve going forward, supported by a number of ongoing and new infrastructure projects.

The group said ongoing developments such as the Pengerang Integrated Petroleum Complex in Johor and the railway infrastructure projects in the Klang Valley such as the mass rapid transit (MRT) and light rail transit (LRT) projects are expected to spur demand for building materials.

“As you know, the MRT Line 2 contract has recently been awarded. With these infrastructure projects, we believe the demand will be better. We have been in the market for over 30 years, and we have a strong network," Oh told a press conference after the group’s annual general meeting (AGM) today.

“For whichever mega projects in Malaysia, AYS is usually one of the companies involved in the supply chain. We always view these projects positively,” he added.

(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.)