Ho Wah Genting, Tropicana, K-One, UWC, Axis REIT, Astro, TNB and Hibiscus Petroleum

Ho Wah Genting, Tropicana, K-One, UWC, Axis REIT, Astro, TNB and Hibiscus Petroleum
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KUALA LUMPUR (Sept 3): Based on corporate announcements and news flow today, stocks that may be in focus tomorrow (Sept 4) include: Ho Wah Genting Bhd, Tropicana Corp Bhd, K-One Technology Bhd, UWC Bhd, Axis REIT, Astro Malaysia Holdings Bhd, Tenaga Nasional Bhd and Hibiscus Petroleum Bhd.

Ho Wah Genting Bhd has called off its proposed placement of up to 63.69 million irredeemable convertible preference shares (ICPS) shares to 15 investors, including its substantial shareholder Ho Wah Genting Sdn Bhd (HWGH) for 49.7 sen per ICPS share. It will still issue 40.25 million new ordinary shares at 49.7 sen apiece to settle RM20 million worth of debts owed to HWGH and Prime King Investment Ltd.

Tropicana Corp Bhd issued RM100 million worth of sukuk out of its RM1.5 billion Sukuk Wakalah programme to repay borrowings and defray financing expenses. The Islamic bond has a five-year tenure, senior ranking and a security cover of 1.5 times. The Sukuk Wakalah programme has been assigned a credit rating of A+IS with a stable outlook by the Malaysian Rating Corp Bhd.

K-One Technology Bhd has received the greenlight from the Medical Device Authority to supply nasal swabs in Malaysia. It plans to sell the swabs on their own or in a bundle with vials, depending on the requirements of end users. This follows its May announcement that it would be venturing into nasal swab manufacturing in light of the COVID-19 pandemic.

UWC Bhd's 4QFY20 net profit jumped 85.2% to RM18.65 million, from RM10.07 million a year earlier, on higher revenue from its sheet metal fabrication and value-added assembly services segment (which contributed 91.3% of its top line). Quarterly revenue grew 30.9% to RM61.41 million from RM46.91 million. The group declared a dividend of two sen per share, payable on Oct 8. Full year net profit grew 59.4% to RM57.76 million, from RM36.24 million previously. Annual revenue climbed 51.7% to RM219.05 million, from RM144.35 million.

Axis REIT is to buy a single-story warehouse located on 8,732.6 sq m of leasehold industrial land in Section 15, Shah Alam for RM11.87 million from Melewar Industrial Group Bhd. The purchase is aimed at strengthening its portfolio of industrial properties. Axis REIT will use a financing facility from existing credit lines to buy the warehouse. As such, its gearing ratio will increase to 28.98% of its audited total assets as of Dec 31, 2019.

Astro Malaysia Holdings Bhd is ramping up to provide its most far-reaching coverage of the Premier League football competition that begins on Sept 12. As the official and exclusive Premier League broadcaster in Malaysia, it will televise all 380 matches live on television and on Astro Go.

Tenaga Nasional Bhd (TNB) is projecting a slightly lower electricity tariff next year following the current reduction in production costs for coal and gas. President and CEO Datuk Seri Amir Hamzah Azizan said that this would depend on the Energy Commission, which will submit any tariff proposals to the Cabinet. The proposal would also be based on the movement and projection of coal and gas prices until the end of the year. The commission is expected to announce a new electricity tariff at the end of the year for January-June 2021 following Cabinet approval.

Hibiscus Petroleum Bhd has won three licences from the UK Oil and Gas Authority. One license is for Block 21/24d, located 4km away from the Teal Manifold of the Anasuria Cluster. Another license is for Blocks’ 21/19c and 21/20c which are contiguous with the Cook field. The third licence is for Block 15/17a which is 8km away from the Marigold field operated by the group.

S Kanagaraju