Integrax, Perak Corp, Tenaga, Coastal Contracts, Shangri-La, MRCB, Pharmaniaga, Perdana Petroleum, MFM, Sime Darby and Kulim


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KUALA LUMPUR (Feb 23): Based on corporate announcements and newsflow today, companies that may be in focus tomorrow could include: Integrax Bhd, Perak Corp Bhd, Tenaga Nasional Bhd, Coastal Contracts Bhd, Shangri-La Hotels (Malaysia) Bhd, Malaysian Resources Corp Bhd (MRCB), Pharmaniaga Holdings Bhd, Perdana Petroleum Bhd, Malayan Flour Mills Bhd (MFM), Sime Darby Bhd and Kulim (Malaysia) Bhd.

Integrax Bhd's second largest shareholder Perak Corp Bhd (fundamental: 1.9; valuation: 1.2) is not selling its 15.74% stake (47.34 million shares) in Integrax to Tenaga Nasional Bhd, if the utility giant does not up its offer of RM2.75 per Integrax (fundamental: 1.65; valuation: 0.6) share to RM3.25 apiece.

This latest development could further erode Tenaga’s (fundamental: 1.3; valuation: 1.8) hope to take over the port operator, given Integrax’s co-founder and biggest shareholder Amin Halim Rasip, who holds a 23.15% stake, has already rejected Tenaga’s offer and has consequently bought more shares in Integrax.

Perak Corp’s filing with Bursa Malaysia today said its rejection was made after reviewing the independent advice circular by M&A Securities Sdn Bhd — which viewed Tenaga’s offer as “not fair” but “reasonable” — and receiving the recommendation of its appointed adviser Affin Hwang Investment Bank Bhd.

Coastal Contracts Bhd’s wholly-owned subsidiary, Coastal Offshore (Labuan) Pte Ltd, has sold two units of offshore support vessels (OSV) for approximately RM197 million, bringing its order book to-date to RM2.81 billion, of which RM1.46 billion is from vessel sales.

In a filing with Bursa Malaysia, Coastal Contracts (fundamental: 2.6, valuation: 1.8) said the vessels were sold to its new customers in Mexico for deliveries in 2015 and 2017, like all its other vessels.

The company notes the revenue stream from these vessels are expected to contribute positively to the top and bottom line performance of Coastal Group for the financial years ending Dec 31, 2015, and Dec 31, 2017.

Shangri-La Hotels (Malaysia) Bhd saw an 85% plunge in its net profit to RM9.95 million for its fourth quarter ended December 31, 2014 (4QFY14), from RM67.76 million in the previous corresponding quarter, bringing its earnings per share to 2.26 sen, from 15.4 sen previously.

The hotel operator’s quarterly revenue fell 5% to RM125.05 million, from RM131.74 million in the year before, its filing to Bursa Malaysia showed today.

The weaker financials notwithstanding, the group has declared a final single-tier dividend of 9 sen per share for the period ended Dec 31, down from the 15 sen in the previous year, payable on June 30, 2015. This brings its FY14 dividends to 12 sen per share, compared to 18 sen in FY13.

For the full FY14, Shangri-La’s (fundamental: 2.15; valuation: 2.10) net profit dropped 39% year-on-year (y-o-y) to RM79.34 million, from RM130.37 million; while cumulative revenue was slightly higher at RM513.68 million, compared to RM511.23 million a year earlier.

Malaysian Resources Corp Bhd (MRCB) dipped into the red, posting a net loss of RM5.28 million for its fourth quarter ended Dec 31, 2014, compared to net profit of RM2.22 million in the same quarter the year before.

Its revenue jumped 32% to RM487.17 million, from RM369.0 million in the previous year.

For the year, MRCB (fundamental: 0.45; valuation: 0.60) returned to black, reporting net profit of RM152.63 million, compared to its net loss of RM109.13 million a year earlier.

Cumulative revenue soared 61% year-on-year (y-o-y) to RM1.51 billion, from RM940.91 million.

Pharmaniaga Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2014 jumped 76% to RM36.69 million, from RM20.81 million a year earlier, on the back of a 10% increase in revenue to RM627.1 million, versus RM567.86 million previously.

Pharmaniaga (fundamental: 0.75; valuation: 2.10) also declared a dividend of 12 sen per share. For the financial year ended Dec 31, Pharmaniaga’s net profit surged to RM93.84 million, from RM55.2 millionl; revenue rose to RM2.12 billion, from RM1.95 billion.

Perdana Petroleum Bhd’s (fundamental: 1.15; valuation: 1.80) net profit declined 31% to RM15.01 million for the financial quarter ended Dec 31, 2014, from RM21.89 million in the previous year’s same quarter.

Revenue for the quarter fell slightly to RM77.55 million, down 1% from RM78.04 million in the year before.

For the financial year ended Dec 31, net profit jumped 42% year-on-year (y-o-y) to RM88.05 million, from RM61.66 million; while revenue increased 26% to RM347.22 million, from RM274.65 million.

Malayan Flour Mills Bhd (MFM) reported a 79.88% drop in its net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) to RM4.64 million, from RM23.09 million a year ago, mainly due to lower profit margins in both flour and trading in the grains segment, as well as the poultry integration segment.

MFM (fundamental: 1.1; valuation: 1.8) also reported a 9.28% drop in revenue to RM574.14 million in 4QFY14, from RM632.89 million in 4QFY13, due to lower sales in the poultry integration segment.

Earnings per share (EPS) for 4QFY14 was lower at 0.86 sen, from 4.29 sen in 4QFY13.

For the full year ended Dec 31, 2014 (FY14), MFM reported a 1.19% increase in net profit to RM67.78 million, from RM66.98 million in FY13. However, revenue fell by a marginal 0.84% to RM2.29 billion, from RM2.31 billion in FY13, due to lower sales for the poultry integration segment.

MFM also declared a second interim dividend of 3.5 sen per share for FY14, payable on March 25. This brings its total dividend for the year to 6.5 sen per share.

Sime Darby Bhd’s offer to take over New Britain Palm Oil Ltd (NBPOL) at £7.15 (RM39.25) cash per share, has turned unconditional and is due to be completed by the first half of 2015.

In a filing with Bursa Malaysia today, Kulim (Malaysia) Bhd (fundamental: 0.65; valuation: 1.2) said Sime Darby (fundamental: 1.3; valuation: 1.3) had on Feb 18, 2015 (last Wednesday), announced the offer was free of all conditions specified in Section 12.1 of the offer document, and is now unconditional.

The privatisation of UK and Papua New Guinea-listed NBPOL will see Sime Darby delisting NBPOL from the UK bourse.

The acquisition of NBPOL includes Kulim's 48.97% stake in NBPOL.

(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.)