KUALA LUMPUR (Aug 1): Based on corporate announcements and news flow today, stocks in focus on Friday (Aug 2) may include: Magni-Tech Industries Bhd, Tashin Holdings Bhd, Datasonic Group Bhd, Bursa Malaysia Bhd, Star Media Group Bhd, Trive Property Group Bhd and Sinmah Capital Bhd.
Magni-Tech Industries Bhd has proposed to undertake a two-for-one share split to improve trading liquidity and a one-for-three bonus issue to reward existing shareholders.
The garment manufacturer said the share split would involve the subdivision of every one existing ordinary share into two ordinary shares, while the bonus issue would entail the issuance of one bonus share for every three subdivided shares.
The proposed share split would result in a proportionate downward adjustment to the market price of Magni-Tech shares.
Tashin Holdings Bhd shares closed 9.5 sen or 16.38% at 48.5 sen lower on its trading debut after opening at its initial public offering (IPO) price of 58 sen today.
The stock, with a market capitalisation of RM169.26 million, is the seventh ACE Market listing on Bursa Malaysia this year. Tashin is 51% owned by Main Market-listed Prestar Resources Bhd.
It is the second counter to close lower than its IPO price on its maiden trading day, after Kim Hin Joo (Malaysia) Bhd.
Datasonic Group Bhd has expressed an interest in taking part in the Government's open tender for a new Integrated Immigration System (IIS).
"Basically all components of the tender, we are there. We have experience in every facet of the tender," its managing director (MD) Datuk Abu Hanifah Noordin told reporters after the identification products and solutions provider's annual general meeting today.
The due date for submission is Aug 19 and deputy MD Chew Ben Ben said the management is confident of the company's chances in the upcoming tender.
Chew also said as the Government has resumed orders for MyKads from Datasonic, expecting the group's financial performance to be normalised moving forward.
Bursa Malaysia Bhd, which posted a 23.6% decline in first-half net profit to RM93.19 million, expects a better second half, mainly driven by foreign fund inflows as the country’s fundamentals remain strong, said its chief executive officer Datuk Muhamad Umar Swift.
Earlier, Bursa reported a drop in net profit for the fifth straight quarter, hurt mainly by lower operating revenue across the securities and derivatives markets.
Its net profit fell 20.4% to RM46.34 million for 2QFY19, from RM58.21 million a year ago. Quarterly revenue also dropped 11.8% to RM123.96 million, from RM140.56 million for 2QFY18.
Nevertheless, the group declared a first interim dividend of 10.4 sen per share for the financial year ending Dec 31, 2019 (FY19), payable on Aug 30.
The weak quarterly performance lowered the group's net profit for the cumulative six months (1HFY19) by 23.6% to RM93.19 million from RM122 million a year ago. Revenue declined 14% to RM250.49 million, from RM291.27 million for 1HFY18.
Star Media Group Bhd, pressured by short-term financial needs, has proposed to vary the utilisation of RM86 million — part of the remaining balance from its disposal of former subsidiary Cityneon Holdings Ltd — to be reallocated for working capital instead of future investments.
The board of directors will reallocate RM86 million for working capital — repaying its trade and other payables as well as staff salaries — while the remaining RM66.5 million will still be utilised for future investments.
It said the allocation for working capital is expected to further enhance the cash flow and financial position of the company as well as maximise value to shareholders.
Trive Property Group Bhd has blamed the US safeguard tariffs on imports of solar cells and modules from Malaysia for the termination of a joint venture (JV) with Jiangxi Fujing New Energy Technology Co Ltd.
Yesterday, Trive announced that it had aborted the JV with the Chinese firm entered into on Nov 10, 2017 to undertake research and development, assembly, production, distribute and marketing of photovoltaic products such as solar cells, panels or modules.
The JV was intended to provide Trive with an opportunity to develop its solar business, which was expected to provide an additional source of earnings, while improving its financial performance.
Sinmah Capital Bhd's wholly-owned subsidiary Sinmah Development Sdn Bhd is buying a 4.52ha piece of freehold vacant land within Melaka's Durian Tunggal enclave for RM7.3 million to expand the group’s property development activities.
The board expects the proposed acquisition to contribute positively to the group’s income base on the sustained growth in the property development industry and after considering the prospects and outlook of the property development industry.
The poultry firm plans to finance the acquisition through internal funds and bank borrowings.