KUALA LUMPUR (Nov 23): Based on corporate announcements and news flow today, stocks that are likely to be in focus tomorrow (Nov 24) are as follows: Karex Bhd, Tiong Nam Logistics Bhd, Boustead Plantations Bhd, Sime Darby Plantation Bhd. Lotus KFM, MESB Bhd, Guan Chong Bhd, Dayang Enterprise Bhd, Malaysian Resources Corp Bhd (MRCB), Serba Dinamik Holdings Bhd, Hextar Global Bhd, Top Glove Corp Bhd, TA Enterprise Bhd, TA Global Bhd, Kanger International Bhd, Samaiden Group Bhd, Mesiniaga Bhd and Maxis Bhd.
Karex Bhd saw a net profit of RM4.46 million for the first quarter ended Sept 30, 2020, from RM167,000 in net losses a year prior, due to favourable sales mix and improved cost control initiatives. Revenue rose 6.27% to RM101.73 million from RM95.73 million, driven by condom sales from its sexual wellness segment and record-high contribution from its medical segment.
Tiong Nam Logistics Holdings Bhd saw its net profit increase to RM3.69 million in its second quarter ended Sept 30, 2020, from RM1.31 million a year earlier. Revenue dipped to RM149.05 million, from RM155.54 million. The group’s logistics and warehousing services segment saw an increased net profit. For the half year, the group saw a net loss of RM1.84 million, compared with a net profit of RM3.25 million in the same period last year. Half-year revenue fell 10.98% to RM272.04 million from RM305.57 million.
Boustead Plantations Bhd posted a net profit of RM17.97 million in the third quarter ended Sept 30, from a net loss of RM34.31 million a year prior, on higher palm commodity production volume and prices. Revenue was up 48% to RM205.68 million, from RM139.24 million For the nine months ended Sept 30, net profit was down 46% to RM15.5 million, from RM28.72 million last year. Revenue for the period grew 34% to RM389.1 million from RM137.33 million.
Sime Darby Plantation Bhd posted a third quarter net profit of RM190 million, compared with a net loss of RM243 million a year ago, on higher palm commodity prices. Quarterly revenue was up 13% to RM3.18 billion from RM2.82 billion previously. For the nine months ended Sept 30, net profit surged to RM1.04 billion from a net loss RM142 million a year ago, on the back of a 9% increase in revenue to RM9.44 billion against RM8.69 billion.
Lotus KFM Bhd directors Wong Sak Kuan and Yau Ming Tek’s general offer for MESB Bhd failed to secure any acceptance from MESB shareholders. At the offer’s close, MESB shares held by the two remained at 46.83 minion or a 44.14% stake. The offer was triggered on Oct 12, after they bought 29.49 million shares for RM8.85 million.
Guan Chong Bhd’s third quarter net profit declined 23% to RM46.78 million from RM60.53 million a year prior, on lower cocoa sales, narrower margins and higher tax expenses. Quarterly revenue was 13% higher at RM841.59 million from RM744.61 million. Nine-month net profit was up 1% at RM175.93 million from RM174.67 million, with revenue growing 24% to RM2.66 billion from RM2.15 billion. The group declared a second interim dividend of 1.5 sen per share, payable on Jan 20, 2021.
Dayang Enterprise Bhd’s 3Q net profit declined 66.3% to RM36.08 million, from RM107.10 million a year ago. Quarterly revenue was down 35.6% at RM230.21 million, from RM357.58 million last year. The lower earnings were due to lower vessel utilisation and extra costs as from Covid-19 standard operating procedures. Nine-month net profit was down 72% at RM44.42 million, from RM158.05 million a year prior. Nine-month revenue fell 24.7% to RM573.22 million from RM761.16 million.
Malaysian Resources Corp Bhd (MRCB) saw its 3Q net profit slump 63% at RM920,000 from RM2.52 million a year prior, on slower construction activities amid Covid-19. Quarterly revenue was down 20% to RM297.63 million, from RM372.74 million a year prior. The group posted a net loss of RM203.04 million for the January-September period, from a net profit of RM17.71 million a year prior, on impairment provisions, Nine-month revenue was 5% at RM890.56 million from RM847.76 million previously.
Serba Dinamik Holdings Bhd’s 3Q net profit grew to RM148 million from RM113.16 million a year prior, on a strong performance from its operation and maintenance (O&M) segment. Revenue was 41.8% higher at RM1.48 billion, from RM1.05 billion previously. Nine-month net profit rose 20.76% to RM429.6 million from RM355.76 million in the same period last year, while revenue rose 32.52% to RM4.2 billion from RM3.17 billion. The group declared a third interim dividend of 1.35 sen per share, payable on Dec 30.
Hextar Global Bhd’s agriculture segment brought its 3Q net profit 43% higher at RM12.47 million from RM8.74 million a year prior, while revenue rose to RM111.56 million from RM97.18 million. The group declared a third interim dividend of one sen per share or about RM8.21 million in total, to be paid on Dec 28. This brings its year-to-date dividend declared to 3.2 sen per share, 79% of its current year's earnings.
Top Glove Corp Bhd will temporarily shut down 28 factories in Klang due to a high number of Covid-19 cases among its workers. Senior Minister (Security) Datuk Seri Ismail Sabri Yaakob said the factories would cease operations in stages, to allow for factory workers to undergo screening and mandatory quarantine to contain the spread of the virus. The Teratai cluster linked to Top Glove’s workers saw 1,067 new Covid-19 cases today.
TA Enterprise Bhd’s substantial shareholder and co-founder Datuk Tony Tiah’s takeover to acquire the remaining 39.83% stake in TA Global Bhd has been deemed as not fair but reasonable. Independent adviser BDO Capital Consultants Sdn Bhd said the share exchange option is more favourable, as the implied offer price of TA Global of 94.9 sen to 95.2 sen represents a discount of approximately 2.96% to 3.26% to the fair value per TA Global share. As the Covid-19 pandemic is still ongoing, the independent adviser has also recommended holders to accept the cash option.
Kanger International Bhd has received support from the Ministry of Science, Technology and Innovation to purchase Covid-19 vaccines for private-sector use in Malaysia. The ministry’s agency, National Institutes of Biotechnology Malaysia (NIBM), had no objection for the company to liaise with China National Pharmaceutical Group Corp (Sinopharm) on the purchase of the vaccines.
Samaiden Group Bhd has secured an RM115.6 million contract from BTM Resources Bhd to develop a biomass-based power plant in Terengganu. Samaiden has taken on an engineering, procurement, construction and commissioning (EPCC) contract for the development of a 10MWac biomass power plant in in Teluk Kalong, Terengganu. Work will start on Jan 2, 2021, for completion within 23 months.
Mesiniaga Bhd has signed an agreement with Maxis Bhd to provide the latter with hardware and software services for an information technology and engineering network modernisation project. The contract will last until Dec 31, 2025.