Off-Market Trades: Chee Wah, YSP Southeast Asia Holding, CWorks, Pesona Metro, Cahya Mata Sarawak, Microlink Solutions

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This article first appeared in Capital, The Edge Malaysia Weekly, on January 4 - January 10, 2016.

BETWEEN Dec 18 and 28, 743.5 million shares worth RM1.85 billion were transacted off market in blocks of at least 500,000 units. Among the notable transactions was the disposal of 6.25 million Chee Wah Corp Bhd shares by its largest shareholder on Dec 22.

According to Chee Wah’s filing with Bursa Malaysia, executive director Khor Say Beng disposed of the 14.85% stake to Ooi Chin Soon for RM7.4 million.

Chee Wah (fundamental: 0.90; valuation: 1.40), a manufacturer and distributor of stationery and books, reported a net profit of RM2.76 million in the first quarter ended Sept 30, 2015 (1QFY2016), compared with a net loss of RM365,000 in the previous corresponding period.

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At YSP Southeast Asia Holding Bhd, pilgrim fund Lembaga Tabung Haji reappeared as a substantial shareholder on Dec 18 after acquiring four million shares or a 2.97% stake at RM2.43 apiece for a total of RM9.7 million.

On Dec 16, Tabung Haji had disposed of the same number of shares at an undisclosed price, according to YSP’s announcement to Bursa. Tabung Haji now has a 5.13% stake in the importer and distributor of pharmaceutical products.

YSP’s net profit for the nine months ended Sept 30, 2015 (9MFY2015), almost tripled to RM22.6 million from RM9.47 million in the previous corresponding period. YSP (fundamental: 3; valuation: 2) is part of the Yung Shin Pharmaceutical Industrial Co Ltd of Taiwan.

At CWorks System Bhd, Law Li Li emerged as a substantial shareholder after acquiring 20 million shares or a 16.53% stake on Dec 21 at 28 sen per share for a total of RM5.6 million.

Azmi Zainudin had acquired the same number of shares through an off-market transaction on June 2. Besides Law and Azmi, who each have a 16.53% stake in the computerised maintenance management system provider, Raja Abdullah Raja Baharuddin is also a shareholder with a 12.07% stake.

CWorks announced in February that it was diversifying into metal stamping, entering into a heads of agreement with Datin Anitha 

Krishna Murthi and Koormavalanan Laxmanan to acquire TNM MFG Sdn Bhd at an undetermined consideration.

The deal fell through on Nov 30 when the parties failed to agree on the terms and conditions. However, CWorks (fundamental: 2.25; valuation: 0) says the proposed diversification is ongoing.

Construction outfit Pesona Metro Holdings Bhd saw its largest shareholder Kombinasi Emas Sdn Bhd increase its holding to 265.5 million shares or a 40.6% stake. The latter acquired 14.54 million shares or a 2.22% stake on Dec 23 at 44 sen apiece. Kombinasi Emas is owned by Wie Hock Beng and Wie Hock Kiong.

In 2015, Pesona Metro (fundamental: 2.10; valuation: 1.10) announced that it was buying concession holders SEP Resources (M) Sdn Bhd and Selasih Asli Sdn Bhd for a total of RM89.15 million. However, the acquisitions are yet to be completed.

At Cahya Mata Sarawak Bhd (fundamental: 2.50; valuation: 0.50), state investment firm Sarawak Economic Development Corporation disposed of 20 million shares or a 1.86% stake in a direct deal at RM4.80 apiece. SEDC’s stake in the conglomerate stood at 5.67% on Dec 21.

JobStreet Corp Bhd saw its substantial shareholder Ng Kay Yip dispose of 2.1 million shares or a 1.5% stake at RM1.38 apiece on Dec 28. Ng’s stake decreased to 6.15%.

The shares were acquired by Mark Chang Mun Kee, whose stake increased to 12.6% as at Dec 29. In 2014, JobStreet (fundamental: 1.35; valuation: 3) disposed of its job listing businesses in Malaysia, Singapore, the Philippines, Indonesia and Vietnam, to SEEK Asia Investments Pte Ltd for RM1.89 billion.

Omesti Bhd disposed of two million shares or a 1.31% stake in Microlink Solutions Bhd (fundamental: 1.70; valuation: 1.20) for RM2.4 million on Dec 18. Omesti’s (fundamental: 0.55; valuation: 0.90) shareholding in the banking solutions provider stood at 71.28% as at Dec 21.


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. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.