MSM, F&N, Kluang Rubber, PRG, Axis REIT and Mi Technovation

-A +A

KUALA LUMPUR (Oct 8): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Oct 9) may include: MSM Malaysia Holdings Bhd, Fraser & Neave Holdings Bhd (F&N), Kluang Rubber Co (Malaya) Bhd, PRG Holdings Bhd, Axis Real Estate Investment Trust (Axis REIT) and Mi Technovation Bhd.

MSM Malaysia Holdings Bhd, a 51% subsidiary of FGV Holdings Bhd, is selling a 4,453.92ha land in Chuping, Perlis, to Fraser & Neave Holdings Bhd (F&N) for RM156 million. MSM said it will use proceeds from the disposal to repay bank borrowings and for working capital.

The selling price is an 18% discount on the market value of the land.

MSM said it believes the disposal is in the best interest of the group, as the land generates negligible revenues but requires unsustainable financial commitments due to the high operating costs of maintaining the plantation activities.

Kluang Rubber Co (Malaya) Bhd has proposed a special dividend of five sen per share for the financial year ended June 30, 2019 (FY19), additional to a first and final dividend of one sen.

The company said the dividends are subject to shareholders' approval at the forthcoming annual general meeting.

They will be payable on Jan 6, 2020 to shareholders whose names appear on the record of depositors at the close of business on Dec 12, 2019.

PRG Holdings Bhd, which is mainly involved in the manufacturing of webbings, furniture components, other fabric items, as well as the property sector, is now venturing into the timber export business as a means to diversify its revenue stream amidst an economic slowdown.

The loss-making group said its financial performance has been volatile due to the decline in sales of its elastic textile and webbings products, as well as the slowdown in the Malaysian property development and construction industries.

Today, the group secured its shareholders' approval to buy two teak tree plantation lands located in Kelantan, measuring 364.79 hectares and worth RM89.2 million from Alifya Forestry Sdn Bhd.

Axis Real Estate Investment Trust (Axis REIT) is buying a property in the industrial area of Nilai from K-Plastics Industries Sdn Bhd for RM50 million. The acquisition will be accretive to Axis-REIT’s distributable income, and enable the fund to strengthen its portfolio of industrial properties.

The leasehold land with a gross floor area of 246,500 sq ft, houses a single-storey factory with a double-storey office annexed. It is currently being used for the manufacturing and sale of plastics and packaging products.

The proposed acquisition of the property is expected to contribute positively to the earnings of the fund for the financial year ending Dec 31, 2019 (FY19), upon its completion date which is targeted to be by end-2019.

Mi Technovation Bhd has proposed a bonus issue of up to 250 million new shares on the basis of one bonus unit for every two existing shares held, to reward shareholders of the semiconductor assembly equipment solutions provider.

The proposed bonus issue is not expected to have any effect on the earnings of Mi Technovation Group for the financial year ending  Dec 31, 2019 (FY19).

However, there will be a corresponding dilution in the earnings per share of Mi Technovation Group for FY19, as a result of increase in the number of Mi Technovation shares in issue, arising from the proposed bonus issue.