KUALA LUMPUR (Dec 15): Based on corporate announcements and news flows today, companies in focus tomorrow (Wednesday, Dec 16) could include: Datasonic, Top Glove, WCT, UEM Edgenta, PPB, Hiap Teck, Pintaras Jaya, VS Industry, OCK, and Berjaya Media.
Datasonic Group Bhd has bagged a RM318.75 million contract from the Home Ministry (KDN) to supply Malaysian passport chips for five years or a total of 12.5 million passport chips.
In a filing with Bursa Malaysia today, Datasonic said its wholly-owned subsidiary Datasonic Technologies Sdn Bhd (DTSB) has accepted the letter of award (LOA) from KDN for the proposed contract, which commenced from Dec 1, 2016 to Nov 30, 2021.
Under the terms of the LOA, DTSB is required to furnish a performance bond for RM3.19 million to KDN, with validity period commencing from Dec 1, 2016 to Nov 30, 2022.
The contract is expected to contribute positively to its future earnings and net assets per share for the financial year ending March 31, 2017 and thereafter, for the duration of the contract, said Datasonic.
Top Glove Corp Bhd’s net profit jumped about 2.6 times or 163.7% to RM128.35 million in the first quarter ended Nov 30, 2015 (1QFY16), from a year earlier, as rubber glove sales volume grew amid weaker raw material prices and ringgit.
In a filing with Bursa, Top Glove said its 1QFY16 net profit rose from RM48.68 million. Revenue was higher at RM800.28 million versus RM567.63 million.
"Sales volume (quantity sold) attained an all-time high, which signifies a growth of 15% against 1QFY15, largely attributed to nitrile glove sales, which increased 54% compared with 1QFY15.
"The strong US dollar and lower raw material prices have further boosted the group’s performance," Top Glove said in notes accompanying its financials.
Top Glove's chairman Tan Sri Lim Wee Chai said in a separate statement that the company's 1QFY16 revenue at RM800.28 million was a quarterly record.
WCT Holdings Bhd has bagged a RM322.57 million construction contract at Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemical Integrated Development (Rapid) in Johor.
In a filing with Bursa Malaysia, WCT said the contract involved storm drainage work at Rapid. WCT said it received the letter of award yesterday (Dec 15) from Petronas’ subsidiary, PRPC Utilities and Facilities Sdn Bhd.
"The scope of works for the contract includes phased demolition and restoration works, excavation and backfilling works, storm drainage works, piling works, roads and paving works, underground piping works, concrete works, structural works, electrical and instrumentation works and any other miscellaneous works, as specified in the contract," WCT said.
The company said the project is expected to be completed in 28 months from the effective date.
UEM Edgenta Bhd is acquiring 80% in integrated facilities management specialist KFM Holdings Sdn Bhd for RM128 million, a deal which is expected to provide it with immediate access to KFM's clientele in Malaysia and abroad.
In a statement to Bursa Malaysia, UEM Edgenta said it signed the share sale agreement with Nurolamin Abas and Fardan Abdul Majeed to buy the 80% KFM stake under a cash and share deal.
Nurolamin and Fardan are currently the sole owners of KFM.
"KFM is a key player in the integrated facilities management sector, with strong track record. Based on its track record, KFM has the necessary expertise and resources to carry out its secured contracts and is well positioned to secure more projects in both Malaysia and UAE," UEM Edgenta said.
According to UEM Edgenta, KFM's outstanding contracts are valued at more than RM700 million, thus offering earnings visibility till 2031.
PPB Group Bhd's 18.3%-owned associate, Wilmar International Ltd, is capitalising on newly-appointed chief operating officer Pua Seck Guan's expertise to undertake property projects.
Singapore's The Straits Times quoted Wilmar chairman and chief executive Kuok Khoon Hong as saying that the Perennial Real Estate chief executive Pua could open the door to ventures into real estate projects for agribusiness-based Wilmar.
"In many places where Wilmar has significant operations, we have been offered attractive projects by the local government, which we declined, as we do not have expertise in property development.
"With the association with Perennial through Mr Pua, these projects can be undertaken by Perennial, with Wilmar maybe taking a small stake. Successful development of these projects will enhance Wilmar's relationship with the government and standing of the company in those places," Kuok said.
Wilmar and Perennial are listed on the Singapore exchange, while PPB is listed on Bursa Malaysia.
Hiap Teck Venture Bhd registered a net loss of RM37.22 million for its first quarter ended Oct 31, 2015 (1QFY16), mainly due to its share of loss from a jointly controlled entity, making it its fourth consecutive quarterly loss.
A year ago, it registered a net profit of RM2.85 million, its filing to Bursa Malaysia showed. Its latest quarterly revenue, however, was 3.2% higher at RM317.31 million, compared with the RM307.46 million it recorded in the same period last year.
Its share of loss from the jointly-controlled entity amounted to RM50.21 million, which is due to unrealised foreign exchange loss arising from US dollar-denominated shareholders' loan and higher costs associated with trial production.
"To minimise its losses, the jointly controlled entity has temporarily suspended its trial production in October 2015," it added.
Pintaras Jaya Bhd's unit, Pintaras Geotechnics Sdn Bhd, has bagged a piling contract for a service apartment project here, valued at RM21.5 million.
In a filing with Bursa Malaysia, the civil engineering company said it had received a Letter of Award dated Nov 27, 2015 from City View Ventures Sdn Bhd.
The contract was for the execution and completion of piling works for a proposed service apartment at Jalan Kia Peng, Kuala Lumpur.
"The said works are to commence tomorrow (Dec 16), with a completion period of 10 months," it added.
Pintaras Jaya expects the contract to contribute positively to its future earnings.
Johor-based electronic manufacturing services provider VS Industry Bhd saw its net profit jump 70.8% to RM60.18 million in the first quarter ended Oct 31, 2015 (1QFY16), from RM35.22 million a year earlier, on higher sales from its Malaysian operations and foreign exchange gain.
1QFY16's revenue grew 12.5% to RM612.47 million, from RM544.56 million, its filing to Bursa Malaysia today showed.
VS Industry said the improved earnings for the quarter was mainly due to higher sales from its Malaysian operations, while it recorded a net foreign exchange gain of RM14.61 million versus RM61,000 in the same period last year.
It also declared a first interim single-tier dividend of 1.5 sen per share for the financial year ending July 31, 2016 (FY16), payable on Mar 11, 2016.
OCK Group Bhd's rights issue with warrants has been oversubscribed by 28.16% at the close of acceptance and payment on Dec 8, with a total of 338.44 million valid applications for the issuance, against a total number of 264.08 million rights shares available for subscription.
The rights shares and warrants are targeted to be listed on Dec 22, 2015.
The group said it aims to expand either through the acquisition of telecommunication companies or assets, or via building its own telecommunication infrastructure and equipment.
OCK said it had, with its partner King Royal Technologies Co Ltd, entered into a memorandum of understanding (MoU) with Telenor Myanmar Ltd, to build and lease tower infrastructure to Telenor, and the agreement is expected to be finalised this month.
Berjaya Media Bhd saw its net profit for the second quarter ended Oct 31, 2015 (2QFY16) plunge 92.7% to RM54,000, from RM741,000 in the previous year, largely on lower revenue registered by Sun Media Corp Sdn Bhd (SunMedia), the publisher of The Sun newspaper.
Revenue for the quarter was down 13.23% to RM11.81 million, from RM13.61 million, due to lower advertising income recorded by Sun Media.
For the six months period (1HFY16), Berjaya Media sank into red with a net loss of RM951,000, compared with a RM1.98 million net profit in 1HFY15.
This was due to lower revenue and impairment loss on fair value of quoted investments, according to the group's filing with Bursa today.
Going forward, Berjaya Media expects it to continue to operate in a competitive business environment, and will continue to focus on improving its advertising revenue.
(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.)