KUALA LUMPUR (Dec 16): Based on corporate news flow and announcements today, stocks in focus tomorrow (Thursday, Dec 17) could include: Berjaya Land, Bina Darulaman, OCK Group, MMC Corp, SWS Capital, Olympia Industries, SYF Resources, Poh Kong, Pos Malaysia and DRB-Hicom.
Berjaya Land Bhd (BLand) is cashing out its Berjaya (China) Great Mall Recreation Centre in Hebei, China — which is still under construction — for RMB2.08 billion (RM1.39 billion), the bulk of which has been earmarked to repay borrowings, creditors and contractors.
The group is expected to record a loss of about RMB51.28 million (RM34.25 million), pursuant to the proposed disposal, according to its Bursa Malaysia filing today.
Berjaya (China) Great Mall Co Ltd (GMOC), a 51%-owned unit of Berjaya Leisure (Cayman) Ltd (BL-Cayman), which is in turn a wholly-owned subsidiary of BLand, entered into a Construction Project Transfer Agreement (contract) with Beijing SkyOcean today to effect the sale.
The remainder 49% stake in GMOC is owned by Berjaya Times Square (Cayman) Ltd, a company owned by Tan Sri Vincent Tan Chee Yioun and his son, Ravin Tan Yeong Sheik.
Beijing SkyOcean is wholly-owned by SkyOcean Holdings Group Ltd, which is owned by Zhou Zheng (80%) and his sister, Zhou Jin (20%).
The proceeds will be received by GMOC over a maximum of 24 months from the signing of the contract. GMOC will cease operations upon the completion of the proposed disposal.
Of the proceeds, RMB1.11 billion (RM743.05 million) will be used to repay borrowings, creditors, contractors, and to defray taxes on sale of the Great Mall Project and incidental expenses within 12 months from the respective dates of receipt of the cash portion, it added.
The balance of RMB967.48 million (RM646.18 million) is proposed to be distributed to the shareholders of GMOC, which BL-Cayman, upon receipt, will use for working capital of the BLand Group.
The proposed disposal is expected to be completed by end-2017.
Bina Darulaman Bhd, 67.3%-owned by Perbadanan Kemajuan Negeri Kedah, has bagged a construction contract to build 630 units of People's Housing Scheme (PPR) in Kubang Pasu, Kedah, worth RM106 million.
The construction outfit said its wholly-owned subsidiary BDB Synergy Sdn Bhd had received the letter of acceptance (LoA) dated Dec 3, 2015 from the Ministry of Housing and Local Government to undertake the job.
Under the contract, Bina Darulaman is tasked to design, construct and complete a total of 630 units of single-storey terrace houses for the PPR Project in Kubang Pasu, Kedah, for a period of 36 months.
It expects the project to contribute positively to its earnings for the financial years ending Dec 31, 2016(FY16), until FY18.
Telecommunication network solutions provider OCK Group Bhd, together with its Myanmar partner King Royal Technologies Co Ltd, intends to build up to 3,000 telecommunications towers in Myanmar, over five years.
For starters, OCK will invest US$75 million to build 920 telco towers for Telenor Myanmar Ltd, which will be delivered next year, under a long-term 'build and lease' business model.
In a statement, OCK said it and King Royal have signed a master services agreement with Telenor for the proposed project.
OCK group managing director Sam Ooi said the group seeks to expand its services regionally, and that Myanmar's mobile phone industry has shown tremendous growth in the past year. This calls for more telco towers, both for coverage and capacity.
Ooi added that the Myanmar investment is part of the OCK’s mission to grow its recurring income.
MMC Corp Bhd has extended an unconditional takeover offer to acquire all the remaining shares in NCB Holdings Bhd for a cash offer price of RM4.40 per share, from Dec 16, 2015 to Jan 6, 2016.
MMC owns approximately 83.55% stakes in NCB, which wholly owns Northport (Malaysia) Bhd, a major gateway for import and export of containers in Port Klang. NCB also operates a haulage cum logistics business via Kontena Nasional Bhd.
Furniture manufacturer SWS Capital Bhd has aborted its planned private share placement that would involve the issuance of new shares of up to 10% of its issued and paid-up share capital, following the Kuala Lumpur High Court's order today.
The Kuala Lumpur High Court has granted an interim injunction until Dec 23, after SWS major shareholders, led by Tan Sri Tan King Tai, took the matter to court to prevent the company from implementing its private placement on Dec 4.
Olympia Industries Bhd has proposed a capital reduction exercise by cancelling nine sen out of RM1 par value of every existing ordinary share, to pare down its accumulated losses.
Olympia Industries' issued and paid-up share capital as at Dec 8, 2015 was RM1.02 billion, with 1.02 billion existing shares.
Following the completion of the proposed exercise, its issued and paid-up share capital will be RM102.34 million, comprising 1.02 billion ordinary shares of 10 sen each.
According to the diversified group, the proposed par value reduction will give rise to a credit of RM921.09 million, a portion of which will be utilised to offset its accumulated losses, while the remaining credit would be retained in the capital reserves account of the company.
It plans to eliminate its audited accumulated losses as at Sept 30, 2014 of RM477.39 million and unaudited accumulated losses as at Sept 30, 2015 of approximately RM446.52 million, via the proposed par value reduction.
The proposals are expected to be completed by the second quarter of calendar year 2016, it added.
SYF Resources Bhd's net profit in the first quarter ended Oct 31, 2015 (1QFY15) has doubled year-on-year (y-o-y) to RM10.83 million, from RM5.15 million, mainly on higher revenue from its property development, improved board sales and rubberwood furniture exports, as well as stronger US dollar.
Its latest quarterly revenue came in 58% higher y-o-y at RM94.92 million, from RM60.04 million.
Going forward, the group is targeting to increase its exports of processed rubber wood materials to other Asian countries, especially China and India.
For its boards segment, it said the additional capacity in 2016 will be a catalyst for growth for the division.
As for property development activities, it expects these to continue contributing significantly to its results, driven by two new projects, namely Kiara Plaza and Wira Heights 3. In addition, a joint venture residential development in Sungai Long is being developed and will be launched in early calendar year 2016.
Poh Kong Holdings Bhd saw its net profit for the first quarter ended Oct 31, 2015 (1QFY16) plunge 89.1% to RM336,000, from RM3.09 million a year ago due to lower sales volume.
Revenue for the quarter came in 11.2% lower at RM172.29 million from RM193.95 million in 1QFY15 due to weak market sentiment, decline in demand for gold investment and jewellery products during the quarter.
According to its filing with Bursa, the jewellery retail chain said the main revenue contributors were gold jewellery and gold investment products.
On a sequential basis, Poh Kong has returned to profitability. It sank into the red in the fourth quarter ended July 31, 2015 (4QFY15) with a net loss of RM5.05 million, due to lower sales volume coupled with higher operating expenses.
Pos Malaysia Bhd's board of directors has accepted DRB-Hicom Bhd offer for sale of the latter's wholly-owned KL Airport Services Sdn Bhd (KLAS) and a parcel of industrial land in Shah Alam, for RM835.16 million.
Pos Malaysia announced in a filing with Bursa that its board accepted DRB-HICOM's conditional offer today, and that the sale and purchase agreements (SPA) to effect the transactions would be executed within three months from the acceptance of the offer.
The acceptance, however, is subject to the results or findings of the due diligence exercise to be conducted by Pos Malaysia and execution of the SPA within the exclusivity period.
The proposed acquisitions of KLAS and the Section 28 land in Shah Alam, would also be conditional upon the approval of the company’s shareholders at an extraordinary general meeting to be convened.
"A detailed announcement on the proposed acquisitions of KLAS and the land, would be made upon finalisation of the terms and conditions of the transactions and execution of the SPA," it added.
On Dec 10, DRB-Hicom had announced its offer to sell KLAS and part of a freehold industrial land in Shah Alam to Pos Malaysia, to consolidate its logistics business under Pos Malaysia.
The disposal, subject to the complete capitalisation of RM552.9 million owed by KLAS to DRB-Hicom and the transfer of 100 acres of land in Kedah from Konsortium Logistik Bhd (owned by KLAS) to DRB-Hicom, would be satisfied via the issuance of 250.8 million new ordinary shares in Pos Malaysia at an issue price of RM3.33 a share.
(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.)