KUALA LUMPUR (Feb 5): Based on corporate newsflow and announcements today, companies that will be in focus next Wednesday, Feb 10 may include: Mudajaya, MRCB, Ekovest, Zecon, Prolexus, SMRT, Mitrajaya, CAB Cakaran, DiGi, MISC and Yong Tai.

RAM Ratings has downgraded the ratings of Mudajaya Group Bhd’s subsidiary, Mudajaya Corporation Bhd’s Islamic Medium-Term Notes Programme (2014/2029) and Islamic Commercial Papers Programme (2014/2021) to A2/Stable/P2 from AA3/Negative/P1.

The ratings reflect the credit profile of Mudajaya Group, and the downgrade was premised on the steeper-than-expected deterioration of Mudajaya’s financial performance, with the group having registered losses for financial year ended Dec 31, 2014 (FY14) and first half of FY15, mainly due to cost overruns in key projects.

“The group’s weakened credit profile is no longer comparable with that of AA3-rated peers,” RAM said in a statement.

Malaysian Resources Corp Bhd (MRCB) plans to dispose of its entire 40% interest in Ekovest-MRCB JV Sdn Bhd (JV1) and Ekovest-MRCB Contruction Sdn Bhd (JV2) to Ekovest Bhd for a total cash consideration of RM8.5 million, to monetise its non-core assets.

According to Bursa Malaysia, the proposed disposal is expected to generate a gain of approximately RM3.824 million for MRCB.

JV1 and JV2 are joint venture companies incorporated between MRCB and Ekovest, based on a shareholding of 40% and 60% respectively. JV1 was appointed as the project delivery partner for the River of Life project, and JV2 is principally engaged in civil engineering and building works.

MRCB recognised the disposal plan is part of its macro strategy to monetise its non-core assets and focus its resources on the core businesses of property development, specialised infrastructure and environment projects, in which MRCB is in the driving seat.

While for Ekovest, the acquisition of the balance 40% interest is to obtain total control over JV1 and JV2; and with the acquisitions, it is in a better position to manage the risks and enjoy full rewards from the operations of the companies.

Construction firm Zecon Bhd's wholly-owned unit Zecon Land Sdn Bhd has been appointed by Unit Perumahan Penjawat Awam 1Malaysia (PPA1M) to build and complete a RM760.78 million housing project in Kuching, Sarawak.

Zecon told Bursa Malaysia that the project involves the proposed construction and completion of 2,117 units of double-story terrace houses, with a gross development cost of RM760.78 million.

"An amount of RM138.25 million has been allocated as facilitation fund for this project. A definitive agreement would be entered into in due course, to bind Zecon Land with the relevant parties in relation to the abovementioned project," it said.

Apparel manufacturer and retailer Prolexus Bhd has partnered with Taiwan's Men-Chuen Fibre Industry Co., Ltd, to expand into upstream garment production and set up a garment manufacturing plant in Vietnam.

Prolexus told the bourse that both parties had on Feb 5 entered into a memorandum of understanding (MoU) to form a strategic partnership, to further enhance their business activities and complement each other's businesses.

Men-Chuen is an established knitted fabric mill involved in knitting and dyeing with operations in Taiwan and Vietnam.

The MoU highlights that Prolexus will set up a fabric mill via its subsidiary Trans Pacific Textile (M) Sdn Bhd, and Men-Chuen will participate in the new fabric mill by investing and subscribing for an agreed amount of shares in Trans Pacific Textile, while providing its relevant expertise.

Besides, Prolexus will be setting up a garment manufacturing plant in Vietnam as part of its capacity expansion plans, while Men-Chuen will invest in the Vietnam plant, or an amount to be mutually agreed upon, and in turn Prolexus will invest a similar stake in Men-Chuen Vietnam Co. Ltd.

Men-Chuen Vietnam is a wholly-owned subsidiary of Men-Chuen, which is principally involved in manufacturing of knitted fabrics operating in Vietnam.

SMRT Holdings Bhd has proposed to acquire 64% or 1.15 million shares of information technology (IT) managed services company, N’osairis Technology Solutions Sdn Bhd, for RM6 million.

SMRT told the exchange that the purchase consideration will be satisfied via the issuance of 25.21 million SMRT shares, to be issued at the issue price of 23.8 sen per consideration share. This represents almost 10% of the issued and paid-up share capital of SMRT as at Feb 4, 2016.

The group said the proposed acquisition represents a new business opportunity for SMRT and its subsidiaries to expand its business in the IT segment, and hence provide an additional income stream, and will also complement SMRT’s existing software development activities by leveraging on N’osairis’ existing customer base, strength and technical expertise.

Mitrajaya Holdings Bhd is selling its 1.28 million shares in the eye correction treatment provider Optimax to Optimax Healthcare Services Sdn Bhd, for RM5.1 million. The gain arising from the proposed divestment is RM1.49 million.

The company told Bursa Malaysia, that the sale consideration of RM5.1 million is at 39% premium to the net asset value of Optimax Group, as per its management accounts as at Dec 31, 2015 of RM7.2 million.

Mitrajaya will use the proceeds raised from the proposed divestment to provide financial assistance to its subsidiary companies to meet their day-to-day business operational needs, which includes the payment for purchase of supplies and repayment of bank borrowings as and when it falls due.

CAB Cakaran Corp Bhd is considering to acquire some of Farm's Best Bhd's assets for an indicative amount of some RM242 million.

In a bourse filing, Farm's Best said three of its wholly owned subsidiaries, namely Farm's Best Food Industries Sdn Bhd (FBF), Sinmah Breeders Sdn Bhd (SBSB) and Sinmah Livestocks Sdn Bhd (SLSB), have received three separate letters of intent (LoIs) from CAB to purchase certain assets.

CAB is looking to acquire certain FBF assets for RM80 million. FBF's assets in question comprise land, building and equipment located at its poultry processing plant in Melaka, and depots at Johor, Selangor, Penang, Negeri Sembilan and Pahang, in addition to trademarks and its customer database.

From SBSB, CAB is looking to buy certain of its assets, comprising land, building and equipment located at SBSB's breeder farms and hatcheries in Melaka, Negeri Sembilan and Johor, in addition to its licences and customer database, for RM88 million.

From SLSB, CAB is interested in buying its land, building and equipment at its broiler farms in Johor, Negeri Sembilan and Melaka, in addition to its licences and customer database, for RM74 million.

Telecommunications provider DiGi.Com Bhd recorded a 31.7% drop in net profit to RM382.36 million or 4.92 sen per share in its fourth quarter ended Dec 31, 2015 (4QFY15), from RM560 million or 7.2 sen per share a year ago, as a result of progressively higher operational and maintenance cost.

According to its filing with the exchange, revenue slipped 4.1% to RM1.72 billion in the quarter under review, from RM1.8 billion last year.

DiGi declared a fourth interim tax exempt single tier dividend of 4.9 sen for the financial year ended Dec 31, 2015 (FY15), which will be paid on March 25. Entitlement date is Feb 29.

The group's FY15 net profit fell 15.2% to RM1.7 billion or 22.15 sen per share, from RM2.03 billion or 26.12 sen per share a year ago. Meanwhile, revenue dipped 1.5% to RM6.9 billion, from RM7 billion in FY14.

Its chief executive officer Albern Murty said moving forward, DiGi will remain focused on growth and value creation, with growth coming from its existing telco business, and driving data momentum from current and new digital services and verticals.

MISC Bhd's net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) fell 21% year-on-year to RM757.72 million or 16.9 sen per share, from RM959.03 million or 21.5 sen per share a year ago, partially due to a net loss on disposal of ships, property, plant and equipment amounting to RM74.99 million.

According to its financial statement, it recorded a RM654.55 million disposal gain in 4QFY14. Its share of profit of joint ventures also tumbled 47% to RM169.07 million, from RM319.91 million a year ago.

Revenue for the quarter came in 44.54% higher at RM3.31 billion versus RM2.29 billion a year ago, as all its business segments performed better during the quarter under review.

MISC declared a total dividend of 22.5 sen. This comprises a second interim dividend of 12.5 sen and a final dividend of 10 sen.

For FY15, MISC's net profit jumped 12.27% to RM2.47 billion or 55.3 sen per share, from RM2.2 billion or 49.4 sen per share; while revenue gained 17.3% to RM10.91 billion, from RM9.3 billion in FY14.

Moving forward, the group expects its petroleum shipping segment to continue enjoying the benefits of the market strength that was seen last year, barring any material cutback in global oil production.

Hong Kong-listed Sino Haijing Holdings Ltd is investing RM280 million in Yong Tai Bhd under a corporate exercise, which saw it emerging as its new substantial shareholder, with more than 33% of the voting rights.

In a statement today, Yong Tai said the corporate exercise involves Sino Haijing's unit Impression Culture Asia Ltd's subscription of Yong Tai's proposed special issue of 150 million new shares, amounting to RM120 million, representing 34.5% of its enlarged and paid-up share capital at an issue price of 80 sen per share.

It also involves the proposed subscription of 200 million new irredeemable convertible preference shares (ICPS) at an issue price of 80 sen each, being the par value of the ICPS, with subscription consideration amounting to RM160 million.

Following Sino Haijing's impending emergence as a new substantial shareholder, it will seek an exemption from the authorities from undertaking a mandatory takeover offer for the remaining Yong Tai shares that it does not already own, after the corporate exercise.