KUALA LUMPUR (Nov 17): Based on corporate announcements and filings today, stocks that are likely to be in focus tomorrow are as follows: Batu Kawan Bhd, Chemical Company of Malaysia Bhd (CCM), AirAsia Group Bhd, Petronas Dagangan Bhd (PetDag), MISC Bhd, FGV Holdings Bhd, Unisem (M) Bhd, Tenaga Nasional Bhd (TNB), Iskandar Waterfront City Bhd (IWCity), K-One Technology Bhd and AT Systemization Bhd.
Batu Kawan Bhd is acquiring a 56.32% stake in Chemical Company of Malaysia Bhd (CCM) from Pemodalan Nasional Bhd (PNB) for RM292.97 million or RM3.10 per share. Batu Kawan will make a mandatory general offer of RM3.10 per share for all remaining shares in CCM — whose listing status Batu Kawan intends to maintain.
The RM3.10 transaction price constitutes a premium of 11.11% over CCM’s closing price of RM2.79 — the highest level in 12 years. The acquisition is subject to the consent of a lender bank in respect of the banking facilities provided to the CCM group for the transfer of the sale shares and are not subject to shareholder approval. The proposals are expected to be completed in the first quarter of 2021.
AirAsia Group Bhd’s 33%-owned associate AirAsia Japan Co Ltd (AAJ) has filed for bankruptcy. The move was due to insolvency stemming from the demand slump in travel that was induced by lockdown restrictions related to the Covid-19 pandemic. The total cost of investment in AAJ has been fully written down. AAJ ceased operations last month.
Separately, AirAsia said that its third-quarter operating statistics showed improvements against the immediate preceding quarter. AirAsia Malaysia saw a 36% increase in passengers, AirAsia India a 79% passenger increase and AirAsia Thailand a 65% passenger increase. Revenue improved, with sales rising 57% this week versus last week on its latest airasia.com Super Sale that started yesterday.
Petronas Dagangan Bhd (PetDag)’s third quarter ended Sept 30, 2020 (3QFY20) net profit was up to RM212.66 million from RM3.5 million in 2QFY20 following recovery from the impact of the Covid-19 and the various movement restrictions implemented. Revenue was up by 65% to RM4.83 billion from RM2.93 billion on higher sales volume. Still, net profit was down 11% from RM239 million in 3QFY19 and revenue was 38% lower from RM7.81 billion a year prior.
It declared an interim dividend of 11 sen per share payable on Dec 16 from 16 sen per share declared in the previous corresponding quarter. The latest payout will raise 9MFY20 dividend to 21 sen, versus 45 sen in the previous year.
9MFY20 net profit was at RM186.75 million, down 73% from RM702.95 million a year ago, as revenue sank 36% to RM14.32 billion from RM22.5 billion.
MISC Bhd’s 3QFY20 net profit slipped 2.93% to RM258.3 million from RM266.1 million a year prior on lower revenue from liquefied natural gas (LNG) and petroleum shipping, and offshore oil and gas support services. It declared a dividend of seven sen a share. 3QFY20 group revenue fell to RM2.06 billion from RM2.15 billion. 9MFY20 saw a net loss of RM599 million from a net profit of RM1.18 billion a year prior despite revenue climbing to RM6.76 billion from RM6.59 billion.
FGV Holdings Bhd posted a net profit of RM136.89 million in 3QFY20 from a net loss of RM262.41 million a year prior on higher crude palm oil (CPO) price and lower loss at the company's sugar segment. Quarterly revenue rose to RM3.99 billion in the third quarter ended Sept 30, 2020 (3QFY20) from RM3.55 billion. For 9MFY20 net profit stood at RM15.09 million versus a net loss of RM317.98 million a year earlier. Nine-month revenue declined at RM10.07 billion versus RM10.1 billion.
Unisem (M) Bhd is to have a private placement of 72.71 million shares to raise up to RM399.9 million to fund expansion plans in Malaysia and China. The placement will be 10% of its total issued shares and will be allocated to a third-party inventory. RM124.19 million of the proceeds will be used for expansion plans in Ipoh, RM204.01 million for plans in Chengdu and RM67.29 million is earmarked as working capital.
Tenaga Nasional Bhd (TNB) has sued Iskandar Waterfront City Bhd (IWCity) for RM76.56 minion for damage to its undersea cables. TNB is alleging that IWCity encroached and trespassed on a part of TNB’s transmission main intake and the right-of way/easement of its undersea cable project in October 2013. In addition, TNB alleges that IWCity a had caused damage to undersea cable 230 KV PLTG - WAV No 1 on Nov 5, 2014. It accused IWCity and its subsidiary of negligence and claimed they are liable for the damage.
K-One Technology Bhd secured a contract to provide Amazon Web Services’ (AWS) cloud services to a new customer in Singapore for at least RM30 million. This is based on the minimum average contract value of RM10 million per year throughout the contract's three-year duration, starting Dec 1, 2020. The exact identity of the customer was not disclosed, but K-One noted that it is one of the world’s largest digital stock image agency with an evenly distributed footprint globally.
AT Systemization Bhd is raising RM99.31 million through another private placement, which will involve it issuing up to 750.04 million shares or 20% of its total issue price. RM71.16 million would be used for its glove business and RM25.09 million for working capital, with the balance to be used to defray expenses related to the exercise, which it expects to be completed by the first quarter of next year. It just completed private placement involving 679.97 million shares for RM43.27 million in proceeds (for its glove business) last week.