KUALA LUMPUR (Apr 29): Based on corporate announcements and news flow today, companies in focus tomorrow (Thursday, April 30) could include: My E.G. Services Bhd, Sunway Real Estate Investment Trust, Yokohama Industries Bhd, UEM Sunrise Bhd, Chin Teck Plantations Bhd, AirAsia X Bhd, NCB Holdings Bhd, Malaysian Pacific Industries Bhd, Tiger Synergy Bhd, Willowglen MSC Bhd, Tambun Indah Land Bhd and Westports Holdings Bhd.
My E.G. Services Bhd (MyEG), which saw its shares plunge as much as 5.5% in intraday trade today, has clarified that the government will bear the convenience fee of RM35 which is charged by the company, for online renewal of foreign workers’ permit.
As such, the processing fee for the renewal will remain at RM125.
MyEG (fundamental: 3; valuation: 1.1) also noted that the Immigration Department announced today that the renewal of foreign workers’ permit will be implemented fully online with effect from this Saturday (May 2).
Sunway Real Estate Investment Trust (fundamental: 1; valuation: 0.15) posted a higher higher gross revenue of RM110.7 million and net property income (NPI) of RM83.2 million for the third financial quarter ended March 31, 2015 (3QFY15), up 2.4% and 3.2% respectively from the year-ago period, contributed by the retail segment.
In a statement, Sunway REIT said the retail segment continued to drive growth for the trust’s asset portfolio, despite increasingly challenging operating environment.
However, the performance was however affected by lower contributions from the hotel and office segment.
It also proposed a distribution per unit of 2.13 sen for 3QFY15, bringing the cumulative DPU to 6.68 sen, representing an increase of 5.5% as compared with the year-ago period.
This translated into annualised distribution yield of 5.7%, based on market closing price of RM1.57 as at March 31.
Fordington Pte Ltd will compulsorily acquire within two months, any remaining shares for which acceptances have not been received for its proposed takeover of Yokohama Industries Bhd (fundamental: 0.8; valuation: 0.8).
In a filing with Bursa Malaysia today, Yokohama said Fordington intends to invoke provisions under Section 222 (1) of the Capital Markets and Services Act 2007, to compulsorily acquire any remaining shares for which acceptances have not been received as at May 5, 2015, being the final closing date.
Fordington seeks to acquire all the remaining shares in Yokohama not already held by the offeror and persons acting in concert for RM1.70 per offer share.
Yokohama said Fordington’s offer will remain open for acceptances up to 5pm next Tuesday, and no further extension of the closing time as well as date for the offer will be made.
Yokohama also reiterated that Bursa will suspend the trading of its shares on May 13.
UEM Sunrise Bhd (fundamental: 1.5; valuation: 2) said the joint venture agreement (JVA) it entered into with Medini Security Services Sdn Bhd (MSSSB) and Nusajaya Five O Sdn Bhd (NFO) to form a security service company to provide enhanced security for Nusajaya, has been rescinded.
The deal collapsed because NFO was not able to secure the approval from the Ministry of Home Affairs for NFO “to be granted a waiver of the primary condition to obtain the security licence”, it said in its filing to Bursa Malaysia.
The primary condition is that 30% of the equity in NFO has to be held by an individual shareholder or a group of shareholders who is either a former senior police officer with the rank of at least senior assistant commissioner II (SAC II), a former senior army officer with the minimal rank of a colonel, or a former civil servant with a job grade of at least 52 – with five years’ experience in the security sector.
The rescission of the JVA notwithstanding, UEM Sunrise said it intends for NFO to continue providing the services of auxiliary policemen for its projects in Nusajaya.
Chin Teck Plantations Bhd (fundamental: 1.65; valuation: 1.4) sank into losses during the second financial quarter ended Feb 28, 2015 (2QFY15).
The plantation firm incurred a net loss of RM486,000, compared with a net profit of RM1.85 million in the previous corresponding period, partly because its harvesting activities were affected by the unrest in the villages near its plantations in Indonesia.
Revenue for 2QFY15 contracted 21% to RM19.25 million, from RM24.43 million during the same period last year. This was a result of lower average selling prices of fresh fruit branches (FFB) and crude palm oil (CPO), and lower sales volume of FFB, CPO and kernel.
In a filing with Bursa Malaysia, Chin Teck said its losses came from its investment in oil palm plantations in Indonesia whereby investment in oil palm plantations in Lampung Province, Indonesia encountered a suspension in routine harvesting due to unrest in the villages located in the vicinity of the plantations.
It also said harvesting of newly mature fields in a joint venture plantation in South Sumatera, Indonesia has been delayed, because of unrest in the villages neighbouring the estate.
Commencement of harvesting is pending clearance by relevant authorities.
Long-haul budget airline AirAsia X Bhd (AAX), which had proposed a rights issue with warrants in January this year, has fixed the issue price of 22 sen apiece for the rights shares at an entitlement basis of 3 rights share for every 4 existing AAX shares.
Meanwhile, the exercise price of the warrants has been fixed at 46 sen each at an entitlement basis of one warrant for every two rights shares subscribed by the entitled shareholders.
The last entitlement date for the rights issue with warrants is by 5pm, May 15.
The issue price of 22 sen per rights share represents a discount of 50% to the 5-market day volume weighted average market price (VWAMP) of AAX shares up to and including April 28, 2015 of 44 sen, being the last trading day of AAX shares prior to the date of this announcement.
The issue price also represents a discount of approximately 37% to the TERP (theoretical ex-right price) of AAX shares of 35 sen, based on the 5-market day VWAMP of AAX
Shares up to and including April 28, 2015. The exercise price of 46 sen for each warrant represents a premium of approximately 30% over the TERP of AAX share.
Based on the existing issued share capital of AAX, the proposed rights issue with warrants will involve the issuance of 1.7 billion rights shares to raise gross proceeds of up to RM391.1 million.
Should all the warrants be exercised, it would also involve the issuance of 888.88 million warrants to raise potential proceeds of up to RM408.88 million.
NCB Holdings Bhd (fundamental: 1.95; valuation: 1.4) saw its net profit for the first quarter ended Mar 31, 2015 (1QFY15) rise 144% to RM11.64 million or 2.5 sen a share, on better performance from its port operations and lower operating expenditure.
In a filing with Bursa Malaysia today, NCB attributed the improvements to higher container handling from its port business and 16.9% reduction in operating expenses in 1QFY15.
NCB operates Northport at Port Klang. For 1QFY15, the number of containers it handled had increased to 685,091 TEUs (20-foot equivalent units) from 609,335 TEUs a year ago.
The much higher profit was achieved despite a 3.7% fall in 1QFY15 revenue to RM197.98 million. The reduction was mainly dragged by 19.6% decrease in revenue from the group’s logistics operations.
Malaysian Pacific Industries Bhd (MPI) saw its net profit rise 187.6% year-on-year to RM30.18 million in the third financial quarter ended March 31, 2015 (3QFY15) on higher sales of smartphones, strong US dollar and lower material costs.
This translates to 15.89 sen in earnings per share in 3QFY15 compared with 5.55 sen earnings per share in 3QFY14.
In a filing with Bursa Malaysia, MPI (fundamental: 1.8; valuation: 2) also disclosed that revenue in 3QFY15 rose 8.76% to RM351.27 million.
The group’s nine-month net profit rose 103.65% to RM74.15 million compared to RM36.41 million a year ago, while revenue rose 4.9% to RM1.017 billion compared with RM969.97 million in 9MFY14.
MPI attributed the sharp rise in net profit to higher revenue from the smartphone sector, strengthening of the US dollar against the ringgit and lower material cost arising from lower commodity prices during 3QFY15.
Tiger Synergy Bhd (fundamental: 1.2; valuation: 0.9) has entered into a joint venture agreement with Credence Property Management Sdn Bhd (CPMSB) to undertake a residential cum commercial development project in Klang, Selangor.
According to a filing with Bursa Malaysia, CPMSB will contribute the development land while Tiger Synergy will bear the cost of development.
The cost of the entire project is estimated to be approximately RM36.34 million and is expected to be completed three years from the date of obtaining relevant approvals from authorities.
Further, Tiger Synergy would also have to pay RM3 million as consideration sum to enter the joint venture.
In exchange for contributing the land, CPMSB will be entitled for 30% of the total gross development value (GDV) of the project, which is slated to have a minimum GDV of RM80 million.
Willowglen MSC Bhd’s (fundamental: 3; valuation: 0.9) net profit for the first quarter ended March 31, 2015 (1QFY15) rose a marginal 1.3% on-year to RM3.92 million from RM3.87 million, despite significantly higher revenue, due to lower margins and higher research and development expenses.
Revenue for the quarter under review for the supervisory control and data acquisition systems (SCADA) company was at RM31.2 million, up 18.8% from RM26.3 million the year before, its filing to Bursa Malaysia showed.
For 1QFY15, the Singapore market accounted for 69% of group revenue, while Malaysia contributed the remaining 31%.
Willowglen said the Indonesia operations are still at the development stage and will focus on providing SCADA and security solutions to the data centers, utilities and oil and gas market.
Penang-based property developer Tambun Indah Land Bhd’s (fundamental: 2.7; valuation: 2.4) net profit came in 18.3% higher at RM29.91 million or 7.1 sen a share for the first financial quarter ended March 31, 2015 (1QFY15) from RM25.29 million or 6.41 sen a share a year ago, on positive take-up for its new launches and sustained revenue recognition from ongoing projects.
The group’s 1QFY15 revenue was at RM130.41 million, up 16.4% on-year from RM112.02 million.
Tambun Indah also proposed a final single-tier dividend of 6.7 sen per share for FY14.
If approved by shareholders, this, together with an earlier 3 sen interim dividend that has already been paid, will make its total dividends declared for FY14 at 9.7 sen or RM40.6 million, which is 40% of the group’s FY14 earnings of RM102.14 million. The group has a dividend policy to distribute 40% to 60% of net profits to shareholders.
Tambun Indah said there were 87.3% average take-up rate in 1QFY15 for its ongoing projects, which have a total gross development value (GDV) of RM1.2 billion; unbilled sales amounted to approximately RM443.57 million.
These, it said, should contribute positively to the group’s earnings for the next two to three years.
Westports Holdings Bhd expects container traffic growth at the port to slow to 5% to 10% this year, compared with a 12% increase to 8.4 million TEUs (20-foot equivalent units) in 2014.
Its chief executive officer Ruben Emir Gnanalingam said nevertheless, it is still expecting positive growth, supported by its three key shipping clients — CMA CGM, China Shipping Container Lines and United Arab Shipping Co — which form the Ocean Three Alliance (O3).
"We expect to handle over 9 million TEUs this year," he told reporters after the group's annual general meeting today.
Since O3's services commenced on Jan 17 this year, Westports has seen an increase in container volume in the first quarter of this year, said Ruben.
(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.)