KUALA LUMPUR (Jan 27): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Thursday, Jan 28) could include the following: Luxchem, Scanwolf, Sunway REIT, LPI Capital, Syarikat Takaful, Pensonic, Poh Kong, DNex and Pavilion REIT.
Industrial chemicals and materials distributor Luxchem Corp Bhd is acquiring Transform Master Sdn Bhd, a chemical product manufacturer, for RM46 million.
According to its bourse filing today, the purchase consideration would be settled through RM36.8 million cash and an issue of 5.18 million new shares in Luxchem at an issue price of RM1.7744 per share.
Luxchem has entered into a heads of agreement with Lee Pei Pei, Lee Chee Sian, Pok Jiun Lim and Oh Wei Wah for the acquisition of Transform Master, which is principally in the manufacturing of chemical products including rubber latex chemical dispersions.
Scanwolf Corporation Bhd's wholly owned subsidiary Scanwolf Properties Sdn Bhd plans to buy a four-storey shophouse with a lift in Falim Business Centre, Ipoh, from its former director and substantial shareholder Datuk Loo Bin Keong for RM2.3 million.
The Perak-based property developer said Scanwolf Properties had entered into a sale and purchase agreement for the purchase of the property with Loo, who resigned from Scanwolf and Scanwolf Properties on Feb 5, 2015 and Nov 28, 2014, respectively.
Scanwolf said in a bourse filing today that the acquisition was to facilitate the centralisation of its operations and relocate its corporate office under one roof to improve efficiency and operational productivity.
The acquisition will be financed partly through internally generated funds and bank borrowings.
Sunway Real Estate Investment Trust (REIT)'s net property income (NPI) for its second quarter ended Dec 31, 2015 (2QFY16) came in at RM97.05 million, up 11.9% from RM86.74 million a year ago, largely on improved performance in its retail and hotel segments.
During the quarter under review, Sunway REIT also recognised a non-recurring income of RM6.2 million, the court award for the loss of income from Sunway Putra, the statement read.
It is proposing a distribution per unit (DPU) of 2.57 sen, up 13.2% year-on-year (y-o-y) from 2.27 sen in 2QFY15, bringing its DPU for the six months ended Dec 31 (1HFY16) to 4.69 sen, 3.1% higher y-o-y from 4.55 sen, a statement from the group today showed.
Its revenue for 2QFY16 came in 15.7% higher y-o-y at RM131.87 million from RM114 million, again due to improved performance in its hotel and retail segments, though that was offset by lower contribution from the office segment.
Profit for the quarter, meanwhile, came in 13% higher y-o-y at RM71.52 million from RM63.27 million.
For the cumulative half-year period (1HFY16), Sunway REIT's NPI came in 7.9% higher y-o-y at RM187 million from RM173.23 million; while revenue rose 11.1% y-o-y to RM253.08 million from RM227.81 million. Profit was up 7.4% y-o-y at RM136.03 million from RM126.72 million.
Moving forward, Sunway REIT Management Sdn Bhd's chief executive officer Datuk Jeffrey Ng said the group is adopting a cautious outlook come 2HFY16, on the back of overall soft business sentiment and intense competition across all sectors that they are operating in, coupled with the planned closure of Pyramid Tower East.
General insurance provider LPI Capital Bhd's net profit declined by 12.7% to RM102.21 million or 30.79 sen per share for its fourth quarter ended Dec 31, 2015 (4QFY15) from RM117.06 million or 35.31 sen per share a year ago, due to lower realised gains on its investment in equities.
Revenue for the quarter, however, rose 6.5% to RM338.62 million, from RM299.17 million in 4QFY14, mainly driven by its general insurance segment.
The insurance group also declared a second interim dividend of 50 sen for the full year (FY15), amounting to RM166 million, payable on Feb 24.
For FY15, LPI Capital's net profit rose 13.4% to RM320.99 million or 96.69 sen a share, compared with RM283.02 million or 85.45 sen a share in FY14, due to stronger performance from its general insurance segment.
Revenue for FY15 grew 9.4% to RM1.28 billion from RM1.17 billion in FY14.
Family and general takaful insurance provider Syarikat Takaful Malaysia Bhd's net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) rose 22.3% y-o-y to RM36.38 million from RM29.75 million, on higher wakalah fee income.
Its revenue inched up 0.46% y-o-y to RM403.34 million for the quarter from RM401.49 million, on higher sales in the Family Takaful and General Takaful business, and higher net investment income.
No dividend was declared for the current quarter under review. It paid a 40 sen dividend last year, its bourse filing today showed.
For FY15, Syarikat Takaful's net profit climbed 11% y-o-y to RM155.98 million from RM140.52 million, while revenue came in 8.5% higher y-o-y at RM1.79 billion from RM1.65 billion.
Electronic and electrical home appliances maker Pensonic Holdings Bhd's net profit rose 4.5 times to RM2.74 million in the second quarter ended Nov 30, 2015 (2QFY16) from RM598,000 a year ago, mainly due to cost rationalisation implemented by management and gains from reversal of impairment for doubtful debts.
In a filing with Bursa Malaysia, the electrical home appliances manufacturer and distributor announced that its revenue for 2QFY16 also increased by 3.95% to RM91.45 million from RM87.98 million in the previous year.
For the cumulative half year ended Nov 30, 2015 (6MFY16), the group's net profit surged 78.58% to RM4.99 million from RM2.8 million a year ago, due to cost control measures as well as gain from reversal of impairment for doubtful debts.
However, revenue fell 1.87% to RM190.39 million from RM194.01 million in 6MFY15, due to current adverse economic situation.
On prospects, the group anticipates competition to remain intense.
Jewellery manufacturer cum retailer Poh Kong Holdings Bhd is cautiously optimistic about its current financial year outlook, underpinned by increased demand for gold for investment and hedging purposes. The jeweller's current financial year ends on July 31, 2016 (FY16).
Today, executive chairman and group managing director Datuk Choon Yee Seiong said the group is anticipating higher demand for gold for investment and hedging, due to the weakening ringgit and oil price slump.
He said Poh Kong's optimism also stemmed from gradual sales recovery after the implementation of Malaysia's goods and services tax.
"We see an improvement in terms of 4QFY15 to 1QFY16, so the board remains confident that (we) should be able to at least maintain the same level of profits that we have enjoyed last year," Choon said at a press conference after Poh Kong's annual general meeting here today.
Technology infrastructure services provider Dagang NeXchange Bhd (DNeX) expects revenue to double in the financial year ending Dec 31, 2016 (FY16), following the completion of its acquisition of OGPC Group.
The information and communications technology (ICT) company is acquiring the entire equity interest in oil and gas (O&G) outfit OGPC Sdn Bhd, and a 52% equity interest in OGPC O&G Sdn Bhd, marking DNeX's first entry into the O&G industry.
Historically, OGPC Group's revenue has been in the range of RM90 million to RM140 million between FY12 and FY15. Its profit margin rose from RM17 million in FY12 to RM23 million in FY15.
In comparison, DNeX's revenue for FY14 stood at RM86.8 million, while net profit was RM12.22 million.
"Come FY16, when we complete the takeover of OGPC, we forecast at least double our revenue and in terms of the (revenue) mix of energy and ICT, it will be about 50/50," DNeX group managing director Zainal Abidin Jalil told reporters after the group's extraordinary general meeting today.
Amanahraya Trustees Bhd has emerged as a substantial shareholder in Pavilion Real Estate Investment Trust (Pavilion REIT), with a 5.003% stake.
In a filing with Bursa today, the property manager for Pavilion Kuala Lumpur said Amanahraya acquired 150.95 million shares last Wednesday (Jan 20) at an undisclosed price.
On Jan 22, the REIT said Amanahraya further acquired an additional 36,100 shares, bringing its stakeholding to 5.003%.
(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.)