E&O, Chin Well, Axis REIT, Quill Capita Trust and Genetec Technology

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KUALA LUMPUR (Jan 19): Based on corporate announcements and newsflow today, the companies that may be in focus tomorrow (Tuesday, Jan 20) could include the following: Eastern & Oriental Bhd, Chin Well Holdings Bhd, Axis Real Estate Investment Trust (Axis REIT), Quill Capita Trust and Genetec Technology Bhd.

Eastern & Oriental Bhd (E&O) is adding two more properties to its London portfolio, by acquiring vintage office buildings Landmark House and Thames Tower for a total of £57 million (RM308.94 million as quoted by the company).

In a filing with Bursa Malaysia, E&O (fundamental: 1.5; valuation: 0.6) said its wholly-owned unit Hammersmith Properties Ltd had on Jan 16 (Friday), signed a property sale contract with GEMS Hammersmith (Luxembourg) SARL for the purchases.

The agreement was for Hammersmith Properties to acquire two office buildings, namely Landmark House and Thames Tower, collectively covering 1.2 acres of site at Hammersmith Bridge Road. The two buildings, which were constructed in the 1960s, are close to the A4 — the principal road connecting Central London to Heathrow Airport.

E&O’s group managing director Datuk Terry Tham said there is potential for a major refurbishment of both office towers.

“This prime freehold parcel in the established commercial hub of Hammersmith, represents a significant refurbishment or redevelopment opportunity for E&O in the future. Subject to the relevant authority approvals, there is the potential to create Grade A office space and residential accommodation in an area, where demand for quality new build property is strong,” he said in a press statement.

Chin Well Holdings Bhd (fundamental: 2.1; valuation: 2.4) is poised to fully consolidate the earnings of its subsidiary Chin Well Fasteners (Vietnam) Co Ltd (CW Vietnam) into the second half of its financial year ending June 30, 2015, following Bursa Malaysia's approval today, for the acquisition of the remaining 40% stake it does not already own in the unit.

In a filing with Bursa Malaysia today, Chin Well said the local bourse had approved the listing and quotation of 27 million new Chin Well shares, pursuant to the acquisition.

“With the upcoming completion of this acquisition exercise, Chin Well is poised to fully consolidate the earnings of CW Vietnam to the group, in the second half of its financial year ending June 30, 2015(FY15),” Chin Well managing director Tsai Yung Chuan said in a separate media statement.

Axis Real Estate Investment Trust’s (Axis REIT) realised net income fell 9.9% year-on-year to RM19.33 million in the fourth quarter ended Dec 31, 2014 (4QFY14), from RM21.45 million in the previous corresponding quarter.

Realised rental revenue slipped 4.5% to RM34.37 million, from RM36.01 million previously.

The REIT (fundamental: 1.3; valuation: 0.5) has declared a distribution per unit (DPU) of 4.15 sen for 4QFY14, down 11.7% from 4.7 sen previously. This translates to a full year DPU of 19.75 sen for FY14 — an increase of 6.8%, from 18.5 sen paid out for FY13.

In a separate announcement, Axis REIT proposed a second issuance of 236,000 new units as payment of management fee, at an issue price of RM3.61 per unit. The proposed second issuance would increase Axis REIT’s issued fund size to 547.75 million units, from 547.52 million units.

Quill Capita Trust (fundamental: 0.75; valuation: 3) has reported a realised net income of RM8.5 million for the fourth quarter of 2014 (4QFY2014), which is a marginal decrease of 1.1% from the realised net income of RM8.6 million recorded in the previous corresponding quarter.

“Despite recording a higher net property income of 2.7% compared to 4Q 2013, the trust recorded a slightly lower realised net income for the quarter, mainly due to higher administrative and finance cost,” said the property trust in a statement.

According to the property trust, an interim distribution of 4.1 sen was paid to unitholders on Aug 29, 2014.

As at Dec 31, 2014, Quill Capita’s property portfolio value had increased to RM837.7 million, after recognising a fair value gain on investment properties of RM6.1 million.

Genetec Technology Bhd (fundamental: 0.8; valuation: 1.2) will be conducting a special issue of new ordinary shares to Bumiputera investors.

In a filing to Bursa Malaysia today, the company said this was to comply with the Bumiputera Equity Requirements for Public Listed Companies, which require the company to allocate 12.5% of its enlarged issued and paid-up share capital to Bumiputera investors recognised by the Ministry of International Trade and Industry (MITI).

Genetec has submitted an application to both the Securities Commission and MITI, to seek approval for the exercise. It is also seeking recognition from MITI in order to qualify its existing Bumiputera shareholders, in order to qualify for the equity condition.

(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.)