KUALA LUMPUR (Sept 25): Based on corporate announcements and news flow today, stocks that may be in focus next Monday include NTPM Holdings Bhd, United Malacca Bhd, Sanichi Technology Bhd, Gamuda Bhd, Kossan Rubber Industries Bhd, Parlo Bhd, Serba Dinamik Holdings Bhd and Destini Bhd.
Tissue paper maker NTPM Holdings Bhd's net profit for the first quarter ended July 31, 2020 skyrocketed to RM14.64 million, from RM503,000 a year earlier. The Penang-based company said this was mainly due to lower raw material costs, such as virgin pulp and waste paper prices, and overhead costs. However, its revenue declined by 3% to RM179.29 million from RM184.89 million due to lower sales.
United Malacca Bhd is halting the operations of its 60%-owned Indonesian joint venture PT Wana Rindang Lestari (WRL) in Sulawesi to address environmental issues highlighted by non-government organisations (NGOs). The group said the NGOs had highlighted environmental issues surrounding the operations of WRL, which has a business licence to source timber products over a land area of about 59,920ha. United Malacca said it has conducted a soil and terrain assessment on the land, with an environmental assessment report having been completed and submitted to the authorities there.
Sanichi Technology Bhd is raising RM31.91 million to fund its maiden property development in Melaka. It will be placing 524.82 million shares or 30% of its issued share capital to third-party investors. Of the RM31.91 million targeted, RM30.71 million would be used for the Marina Point project in Melaka. This is the group's maiden property development since it diversified from precision moulds and tooling. The development comprises serviced apartments and a shopping mall, with a gross development value of RM180 million. It is expected to be fully completed by the second quarter of 2021.
Gamuda Bhd slipped into the red for the fourth quarter of financial year 2020 (4QFY20) ended July 31, 2020 with a RM17.34 million loss due a one-off asset impairment following the shutdown of one of its Industrialised Building System (IBS) factories. It posted net profits of RM40.23 million for 3QFY20 and RM179.02 million for 4QFY19. Quarterly revenue was up 68% quarter-on-quarter to RM926.52 million from RM549.9 million in 3QFY20, and was down by 38% year-on-year from RM1.5 billion in 4QFY19. The RM148 million non-cash asset impairment arose from the temporary closure of one of its two IBS factories due to the slower pace of building construction amid stringent Covid-19 standard operating procedures.
Kossan Rubber Industries Bhd's shareholders have approved the group's one-for-one bonus issue involving 1.28 billion shares. 99.99% of those present at its extraordinary general meeting said aye to the issue. The ex-date for the bonus issue is Oct 9, with the entitlement date being Oct 12. Following the issuance, its share capital will increase to 2.56 billion shares.
Parlo Bhd has inked a memorandum of understanding (MoU) with Myanmar's Diamond Palace Group of Companies Ltd and Agensi Perkerjaan Seaview Hectare Sdn Bhd to provide employment agency-related services to diversify revenue amid Covid-19 that has weighed on the travel industry. Under the agreement, Parlo will provide employment agency-related services for workers from source country to destination country in an effort to facilitate the supply of workers to employers.
Serba Dinamik Holdings Bhd, meanwhile, inked an MoU with Huawei Technologies to develop digital solutions involving the adoption to the latter's cloud and artificial intelligence technology. The MoU is aimed at driving digital transformation to urban and rural areas in Malaysia, as well as in the oil and gas (O&G) industry.
Destini Bhd is raising RM78.19 million with a private placement involving 20% of its issued share capital for working capital. Of the proceeds, RM50 million will be used for new projects and RM28.14 million for existing projects. The group is currently bidding for three projects worth a total of RM3.5 billion for its maintenance, repair and overhaul and O&G segments. It has 16 ongoing projects with an outstanding value of RM536.6 million, which will provide earnings visibility for the next 24 months.