KUALA LUMPUR (Aug 11): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, Aug 12) could include: MMC Corp, Ge-Shen, Shell Refining, Mitrajaya, UMW, Benalec, BTM Resources, New Hoong Fatt Holdings, Global Oriental, Weida, KPJ Healthcare, Hong Leong Bank, Kronologi Asia and Sunway REIT.
MMC Corp Bhd has sold three parcels of land, measuring 188.7 acres in Senai to I-Park Sdn Bhd, a member of US-based AME Group, for RM369.97 million cash, which is more than double its purchase price of RM140.5 million.
The disposal is undertaken by Senai Airport City Sdn Bhd (SACSB), a wholly-owned unit of Senai Airport Terminal Services Sdn Bhd, which is in turn wholly owned by MMC. SACSB is a property company.
In an announcement to Bursa Malaysia today, the land was purchased at RM140.5 million in 2009. And the total book value of the tract amounted to RM170.17 million in MMC’s financial accounts as at Dec 31, 2014.
The group said the land disposal would result in an estimated gain of RM153.5 million or five sen per share.
High-precision plastic components maker Ge-Shen Corp Bhd has received a mandatory takeover offer from Pelita Niagamas Sdn Bhd (PNSB) at a cash offer price of 81 sen a share, which is 12.4% lower from its mid-day closing price of 92.5 sen per share today.
The mandatory offer was triggered after PNSB swept up 29.5 million shares of 50 sen each in Ge-Shen or 38.36% of Ge-Shen’s issued and paid up capital for RM23.9 million or 81 sen per share, cash, via direct business transactions today.
This increased PNSB’s stake to 52.67%, with 40.5 million Ge-Shen (fundamentals: 2.2; valuation 1.1) shares.
PNSB also holds 25 million or 83.33% of Ge-Shen’s redeemable convertible preference shares (Ge-Shen RCPS) of 1 sen each, according to a notice of the TO from M&A Securities Sdn Bhd, on behalf of PNSB on Bursa Malaysia today.
PNSB offered to acquire all remaining Ge-Shen RCPS in the market at 81 sen a share, cash.
The offer remains open until 5pm, 21 days from today (Aug 11).
Higher refining margins, once again see Shell Refining Company (Federation of Malaya) Bhd posting a net profit of RM322.19 million or RM1.074 per share in its second quarter ended June 30, 2015 (2QFY15), its second consecutive profitable quarter after returning to the black in 1QFY15.
In the same period last year, Shell Refining saw a net loss of RM28.01 million or 9.34 sen per share.
However, the group’s latest quarterly revenue fell 24% to RM2.97 billion, from RM3.91 billion in 2QFY14, on lower product prices, its filing with Bursa Malaysia showed today.
For the first half ended June 30 (1HFY15), Shell’s net profit came in at RM406.42 million or RM1.35 per share, from a net loss of RM72.09 million or 24.03 sen in 1HFY14, on higher refining margins and stockholding gains of RM101 million.
Meanwhile, revenue for 1HFY15 was down 31% to RM5.45 billion, from RM7.9 billion in 1HFY14, again due to lower product prices.
In 1HFY15, the refinery processed 19.6 million barrels of crude oil and sold 21.3 million barrels of products, up 3% from 1HFY14.
Mitrajaya Holdings Bhd’s net profit rose 70% to RM23.09 million or 5.75 sen per share in the second quarter ended June 30, 2015 (2QFY15), from RM13.58 million or 3.45 sen per share a year ago, on higher contribution from its construction division and South African investment.
Revenue for 2QFY15 jumped 80.5% to RM243.21 million, from RM134.72 million in 2QFY14.
For the six months period (6MFY15), Mitrajaya's net profit grew 48.9% to RM36.49 million or 9.17 sen per share, from RM24.51 million or 6.22 sen per share a year ago.
Revenue in 6MFY15 rose 69.5% to RM404.8 million, as compared to RM238.89 million in 6MFY14.
Going forward, Mitrajaya expects its financial performance for the financial year ending Dec 31, 2015 (FY15) to be strong, with significant contribution from its construction division, as works on on-going projects are progressing well, with an outstanding order book of RM1.75 billion.
UMW Holdings Bhd has promoted its group chief operating officer Badrul Feisal Abdul Rahim to president and group chief executive officer effective Oct 1, replacing Datuk Syed Hisham Syed Wazir, who will be retiring on Sept 30.
In a filing with Bursa Malaysia today, UMW said Syed Hisham had served in the post since 2010 and has intimated his desire to retire upon the expiry of his contract.
Badrul Feisal started his career as an auditor at Arthur Andersen & Co, Khazanah Nasional Bhd, Proton Holdings, Lotus Group International Ltd, DRB-Hicom Group and UMW Group.
Badrul Feisal's current post will be assumed by its executive director of group financial services division and group chief financial officer Azmin Che Yusoff, come Oct 1.
Benalec Holdings Bhd and three of the marine construction services provider’s executive directors were publicly reprimanded by Bursa Malaysia today, for breaching the regulator’s listing requirements regarding some aborted related-party land disposals.
In a local exchange filing, the three are Benalec's managing director Datuk Leaw Seng Hai, and his younger brothers Datuk Leaw Tua Choon and Datuk Leaw Ah Chye. The trio were also fined RM250,000 in total.
Bursa said the company and the trio had breached its Main Market Listing Requirements (Main LR) for failing to make immediate announcement, appoint an independent adviser and procure shareholders' prior approval in relation to the disposal of four pieces of leasehold land in 2012.
Bursa said Benalec had also failed to appoint an independent adviser and procure shareholders' approval prior to the heads of agreement (HoA) announced on Dec 5, 2013, in relation to the rescission and cancellation of the land disposals.
The lands, located in Melaka Tengah, Melaka, measure about 93,126 sq metres. The total consideration for the disposals was RM28 million, to be settled entirely in cash.
Based on its investigation, Bursa said the companies buying the lands were connected to Ah Chye and Tua Choon, connections which the duo had failed to disclose and had persistently denied their interests in, to Benalec's board of directors.
Meanwhile, Bursa Malaysia said Seng Hai, who is in charge of the day-to-day management of Benalec, should have been aware of the anomalies or unusual circumstances of the land disposals.
BTM Resources Bhd plans to acquire no less than a 51% stake in Kuantan-based Pendragon Auto Sdn Bhd, an exclusive BMW car dealer in Malaysia's east coast.
In a filing with Bursa Malaysia today, BTM said its wholly-owned subsidiary BTM Marketing & Trading Sdn Bhd had entered into preliminary talks with Pendragon Auto, to lead up to a definitive shares sale or a share subscription agreement (SSA) on a stake sale.
Pendragon Auto holds the exclusive rights to distribute BMW cars in Pahang, Terengganu and Kelantan, since July 5, 2010.
BTM said it intends to finance the purchase of the shares or the subscription of the new shares in Pendragon Auto, through internal funds and/or banking facility.
New Hoong Fatt Holdings Bhd's net profit slipped 6% to RM5.16 million or 6.86 sen per share in the second quarter ended June 30, 2015 (2QFY15), from RM5.47 million or 7.28 sen per share previously, on higher tax expenses.
The automotive wholesaler's latest quarterly revenue also slipped 9% to RM51.66 million, compared with RM56.81 million in 2QFY14, on lower demand in the local market.
Nevertheless, its cumulative six months (1HFY15)'s net profit rose about 20% to RM9.52 million or 12.67 sen per share, from RM7.95 million or 10.58 sen per share in 1HFY14, on lower operating expenses and favourable impact from foreign exchange (forex) rates.
Revenue for the period, however, declined 3% to RM99.86 million, from RM102.76 million in 1HFY14, again due to lower demand in the local market.
New Hoong Fatt said it continues to face stiff competition in the local and overseas markets, volatility in oil prices and the weakening of the ringgit against the US dollar.
Global Oriental Bhd is disposing of a 19.24-acre parcel of leasehold land in Seri Kembangan, Selangor, for RM43.3 million, cash.
In a filing with Bursa Malaysia, Global Oriental said its wholly-owned subsidiary Pertanian Taman Equine Sdn Bhd has today signed a conditional sale and purchase agreement (SPA) with Kemaris Residences Sdn Bhd for the proposed disposal.
The proposed disposal is expected to give rise to a net gain of RM15.92 million for its financial year ending March 31, 2017.
It plans to use the proceeds to repay bank borrowings and as working capital for property development.
Global Oriental (fundamental: 0.8; valuation: 1.5) expects to complete the proposed disposal by April 2016.
Weida (M) Bhd net profit more than doubled to RM9.38 million in the first quarter ended June 30, 2015 (1QFY16), from RM3.82 million a year ago, on higher contribution from construction of telecommunication towers.
Weida told Bursa Malaysia its progress in construction works of telecommunication towers, which commenced in 4QFY15, continued to contribute positively to the group.
The company’s revenue came in at RM102.91 million in 1QFY16, up 48.7% from RM69.2 million in previous corresponding period.
Moving forward, Weida is cautiously optimistic of achieving satisfactory results for FY16, on strength of the Group's diversified base.
In a separate filing, Weida said its managing director Datuk Lee Choon Chin, 61, has been re-designated as executive chairman, effective today.
KPJ Healthcare Bhd, the country's largest listed healthcare group, will spend RM1.5 billion to build 10 new hospitals here.
KPJ's president and managing director Datuk Amiruddin Abdul Satar said the group will build two hospitals per year over the next five years, and the investment will be funded by internal funds, borrowings and equity.
Speaking to reporters after the launch of KPJ Tawakkal Health Centre on Jalan Pahang here, Amiruddin said the group will allocate about RM200 million from proceeds of a private placement and an Employee Stock Option Scheme (ESOS) exercise recently.
The 10 proposed hospitals will add another 2,000 beds to KPJ (fundamental: 0.95; valuation: 1.1), bringing the total number of beds to 5,000.
Hong Leong Bank Bhd is planning to raise up to RM3 billion ($757 million) in rights issues this year to strengthen its capital, two sources with direct knowledge of the matter told Reuters.
The bank, Malaysia's fifth largest by assets, is the last of its peers to bolster its capital to meet more stringent central bank requirements under the global Basel III framework, sources said.
The news agency said, quoting the sources, that the bank's parent, Hong Leong Financial Group, would be the issues' main subscriber and would raise up to 2 billion ringgit, through a separate rights issue this year.
Kronologi Asia Bhd has received a requisition from its largest shareholder, Piti Pramotedham, who currently holds 53.03% in the company, requiring it to call an extraordinary general meeting (EGM).
Pramotedham, who is Kronologi's executive chairman and group chief executive officer, is seeking to requisition an EGM on Aug 26, to consider ordinary resolutions to appoint four new directors and to remove any person appointed by the directors of the company as an additional director, between the date of requisition and the conclusion of the EGM.
In a filing with Bursa Malaysia today, the enterprise data management solutions provider said the proposed directors are Dr Chew Seng Poh, Anand Padmanabhan, Edward Khor Yew Heng and Tan Bee Kheng.
To recap, on Aug 6, 2015, the majority of the board of directors of the ACE Market-listed company had taken a position to refuse to convene the EGM.
Sunway Real Estate Investment Trust (REIT) has reported a 52% on-year jump in its net profit to RM357.91 million for its fourth financial quarter ended June 30, 2015 (4QFY15), from RM235.21 million, due to better performance of its retail segment.
In a filing with Bursa Malaysia today, Sunway REIT said it is proposing a distribution per unit (DPU) of 2.05 sen for 4QFY15, adding up to a total of 8.73 sen per unit for the full financial year ended June 30, 2015 (FY15), exceeding analyst consensus DPU of 8.7 sen.
The DPU of 8.7 sen translates into a distribution yield of 5.7%, based on Sunway REIT’s market closing price of RM1.54 as at June 30, 2015.
The REIT’s quarterly revenue was slightly higher at RM114.94 million, up 5.2% from RM109.22 million a year ago, mainly contributed by its retail segment.
For full FY15, Sunway REIT (fundamental: 1; valuation: 0.65)’s net profit came in 31.7% higher at RM541.44 million, from RM411.12 million in FY14, mainly from fair value gains.
The REIT reported a 6% increase in FY15 revenue to RM453.45 million, from RM427.79 million in the preceding financial year, on the back of a double digit growth in the retail segment.
Net property income (NPI) for FY15 grew 6.2% to RM340.8 million.
(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.)