(Feb 2): Based on corporate announcements and the filings to Bursa Malaysia today, companies that may be in focus tomorrow (Wednesday, Feb 3) could include: HB Global, Only World Group (OWG), Lay Hong, Hong Leong Industries (HLI), DiGi.Com, SMRT, Axiata, Fraser & Neave (F&N), MAHB, Shell Refining, MBSB, DRB-HICOM and Bursa Malaysia.
Loss-making HB Global Ltd is in the midst of looking for a white knight to inject new capital and/or new businesses into the group, which may involve a reverse takeover exercise or right issues.
The Chinese-based company told Bursa Malaysia, should there be any unsuitable investors, the company shall explore other available options in the best interest of the company.
HB Global fell into Practice noted 17 (PN17) status in May 2013, after its external auditors made a disclaimer opinion on its audited financial statements for 2012.
Only World Group Holdings Bhd (OWG) has fixed the issue price for its proposed private placement of up 10% of its total issued and paid-up share capital at RM2.20 per placement share, and it is expected to raise RM48.84 million.
OWG told the exchange that the issue price represents a discount of approximately 3.6% to the five-day volume weighted average price (VWAP) of OWG shares up to and including Jan 29, 2016, being the market day immediately prior to the price fixing date of RM2.2822 per OWG share.
Lay Hong Bhd has proposed to undertake a bonus issue of shares, a share split and a free warrants issue.
In a statement today, the egg producer said it has proposed a one-for one bonus issue, followed by a share split on the basis of one share to be split into five. Shareholders would also be entitled to free warrants on the basis of one free warrant for two shares held after share split.
The exercise will also expand Lay Hong's share base by at least 10 times.
Lay Hong's share price has gained over 50% in the past month. The stock exchange has advised investors to exercise caution in the trading of Lay Hong shares, following the recent share price rally.
Hong Leong Industries Bhd’s (HLI's) net profit in the second financial quarter ended Dec 31, 2015 (2QFY16) more than doubled to RM74.25 million, from RM35.62 million a year ago, due to higher profit contribution from an associated company.
In a filing with Bursa Malaysia today, HLI said profit contribution from the associated company helped to partially offset the higher production cost from its consumer product segment, having been affected by the weak ringgit against the US dollar.
The group’s revenue for 2QFY16 also grew 1.4% to RM542.88 million, from RM535.56 million a year ago.
For the first half ended Dec 31, 2015 (1HFY16), HLI recorded a net profit of RM119.08 million or 38.61 sen a share, 42.1% higher than the net profit of RM83.79 million or 27.17 sen a share recorded in 1HFY15. Revenue for 1HFY16 was unchanged at RM1.06 billion.
DiGi.Com Bhd said the spectrum allocation will allow the company to better plan its investment and network design.
DiGi, who has been allocated the spectrum of 2x5 megahertz (MHz) of 900MHz and 2x20MHz of 1,800MHz for 15 years beginning July 1, 2017, told Bursa Malaysia that the allocation will improve its spectrum portfolio for the 900MHz band.
"The certainty on allocation and tenure of these two bands will allow for better investment planning and optimal network design. With the improved spectrum portfolio for the 900MHz band, DiGi looks forward to continue bringing quality high-speed internet to its 11.7 million customers and more nationwide," it said.
Syed Mohd Muzakir Syed Hussin has been appointed as the chief executive officer (CEO) of SMRT Holdings Bhd, with effect from today.
SMRT announced to Bursa Malaysia today that Muzakir, 42, will take over the CEO position from its founder Datuk Dr R Palan, 60, who has been re-designated to the role of executive chairman.
Muzakir joined SMRT on March 3, 2014 as the CEO of its corporate office. Prior to that, he was attached with UMW Corporation Sdn Bhd and UEM Group Bhd.
Axiata Group Bhd, which owns 66.4% of Indonesian operator PT XL Axiata Tbk (XL), intends to fully subscribe to the pro rata rights entitlement under the rights issue announced by XL yesterday (Feb 1).
In a statement, the group said the remainder of the rights issue is expected to be fully underwritten.
“The rights issue is to repay its US$500 million shareholder's loan [and] will help XL improve its debt to earnings before interest, tax, depreciation and amortisation (ebitda) ratio,” it said.
Fraser & Neave Holdings Bhd's (F&N's) net profit in the first quarter ended Dec 31, 2015 (1QFY16) net profit, soared to RM151.66 million, from RM69.94 million a year ago, on favourable product mix and commodity prices.
According to its quarterly report to Bursa Malaysia, the group had also benefitted from lower advertising and promotion expenses, as well as the East Coast flood insurance claim recovery, in addition to the absence of flood-related costs, and provisions made in the corresponding quarter.
F&N's revenue for 1QFY16, however, increased marginally by 1.64% to RM1.05 billion, from RM1.04 billion in 1QFY15, mainly due to the termination of distribution right from Red Bull.
Malaysia Airports Holdings Bhd (MAHB) has appointed Raja Azmi Raja Nazuddin as chief financial officer (CFO), effective yesterday (Feb 1).
The group announced in Bursa Malaysia that Raja Azmi's appointment is to fill the vacancy after the departure of former MAHB CFO Faizal Sham Abu Mansor, who left on Aug 17, 2015, citing the pursuit of a new opportunity as the reason.
Raja Azmi was the executive director cum group CFO of UDA Holdings Bhd, before he joined the airport operator.
Shell Refining Co (Federation of Malaya) Bhd, whose major shareholder Shell Overseas Holdings Ltd is selling its 51% stake in the company to Malaysian Hengyuan International Ltd (MHIL) for US$66.3 million or 43 cent per share (RM274.98 million or RM1.80 per share), said it is now in the process of selecting an independent adviser to advise the non-interested directors of the company.
Shell Refining chairman Datuk Iain Lo said in a statement that MHIL was selected by Shell based on its financial, technical and operational capability, one of which was that it was already producing Euro IV and V fuels in China.
Malaysia Building Society Bhd (MBSB), DRB-HICOM Bhd and Khazanah Nasional Bhd have decided to end negotiations for the proposed merger of MBSB and Bank Muamalat Malaysia Bhd.
MBSB said in an announcement to the bourse that the parties have not been able to reach an agreement on the terms and conditions of the proposed merger, after a series of discussions and negotiations.
"Accordingly, the parties have mutually agreed to end all discussions and not proceed with the proposed merger," it said.
Bursa Malaysia Bhd’s net profit fell 4.8% to RM50.6 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM53.14 million a year ago, dragged mainly by higher operating expenses (opex).
In a filing with the bourse, the group said that staff costs, which formed the largest portion of its opex, was 14.23% higher at RM37.69 million in 4QFY15, compared with RM32.99 million a year ago.
Revenue for 4QFY15 increased by 5.51% to RM135.56 million, from RM128.48 million in 4QFY14.
For the financial year ended Dec 31, 2015 (FY15), the group's net profit rose by a marginal 0.2% to RM198.61 million or 37.2 sen a share, from RM198.23 million or 37.2 sen a share a year ago. Revenue grew 2.93% to RM518.5 million, from RM503.76 million in FY14.
Bursa is proposing a final dividend of 18 sen per share, bringing the full year 2015's total dividend to 34.5 sen per share.