KUALA LUMPUR (Oct 26): Based on corporate announcements and news flow on Tuesday, companies in focus on Wednesday (Oct 27) may include: Sime Darby Bhd, CTOS Digital Bhd, Unisem (M) Bhd, Advancecon Holdings Bhd, Padini Holdings Bhd, Berjaya Food Bhd, OM Holdings Ltd, Favelle Favco Bhd, Yinson Holdings Bhd, MHC Plantations Bhd, Deleum Bhd, Ancom Bhd, Globetronics Technology Bhd, Bursa Malaysia Bhd, Ajiya Bhd, Mestron Holdings Bhd and Sarawak Consolidated Industries Bhd (SCIB).
Sime Darby Bhd is investing more than RM120 million for the new Auto Bavaria Balakong 4S Centre. The conglomerate said its automotive division Sime Darby Motors, via its subsidiary Sime Darby Auto Bavaria Sdn Bhd (Auto Bavaria), broke ground on its new BMW 4S Dealership in Balakong.
CTOS Digital Bhd, which is among the credit reporting agencies suspended from accessing the Central Credit Reference Information System (CCRIS) amid potential cyberthreats, said that its assessment indicated no breach of its data assets. In a letter submitted to its clients on Monday (Oct 25) sighted by The Edge, CTOS stated that it completed and submitted a compromise assessment to Bank Negara Malaysia on Oct 18.
Unisem (M) Bhd's net profit for the third quarter ended Sept 30, 2021 fell 20.64% to RM40.27 million from RM50.74 million a year ago, mainly due to lower revenue from the group’s operations in Ipoh, which was impacted by the closure of the plant and headcount limitation imposed during the quarter under review. Quarterly revenue increased by 2.42% to RM366.36 million against RM357.68 million last year. The group also declared a dividend of two sen per share, which will be paid on Nov 26.
Advancecon Holdings Bhd has received its shareholders’ nod to acquire a 51% controlling stake in quarry operator Spring Energy Resources Bhd for RM30.4 million. The earthworks and civil engineering services provider said the approval was given in an extraordinary general meeting. It said the acquisition of the stake in Spring Energy would be satisfied via RM15.2 million in cash and RM15.2 million via the issuance of 33 million new Advancecon shares to vendor Fook Hua Holdings Sdn Bhd at an issue price of 46 sen per share. It added that the new shares to be issued to Fook Hua represent a 7.5% stake in Advancecon.
Padini Holdings Bhd chairman Chia Swee Yuen said it is cautiously optimistic of successfully navigating through the current Covid-19-driven crisis and delivering long-term value to shareholders, as the pandemic continues to pose unprecedented challenges resulting in business disruption, economic volatility, employee and public safety, besides financial issues, despite massive stimulus measures and vaccination efforts implemented by governments worldwide. Chia said in Padini’s latest annual report that the clothes retailer’s domestic operations continue to be the main driver of revenue and profits.
Berjaya Food Bhd's wholly-owned subsidiary Berjaya Starbucks Coffee Co Sdn Bhd (BStarbucks), which operates Starbucks coffee outlets in Malaysia, is expected to have a near-complete presence across the country with a proposed new store in Perlis by end-2021, in line with Berjaya Food's plan to open about 40 new stores across the nation in current financial year ending June 30, 2022 (FY22). According to Berjaya Food's latest annual report, as at June 30, 2021, BStarbucks had 327 stores across Malaysia, except in the state of Perlis.
OM Holdings Ltd's ferroalloy smelter complex in Sarawak registered higher production volumes in the third quarter (3Q) ended Sept 30, 2021, compared with in 2Q ended June 30, 2021. The Australia-listed mining firm said its plant at Samalaju Industrial Park in Bintulu produced 33,453 tonnes of ferrosilicon, 59,307 tonnes of manganese alloys, and 34,542 tonnes of manganese sinter ore for the quarter under review.
Favelle Favco Bhd said it had secured purchase orders for tower cranes, offshore cranes, supervisory control and data acquisition system with a combined value of RM37.1 million. The construction cranes manufacturer said in a bourse filing that the purchase orders were secured by its subsidiaries Favelle Favco Cranes Pte Ltd, Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pte Ltd and Exact Automation Sdn Bhd. The customers are G A Caelli Holdings Trust, Saipem S.P.A, Thien Nam Offshore Services JSC and Rockwell Automation Southeast Asia Pte Ltd.
Yinson Holdings Bhd — through its wholly-owned subsidiary Yinson Green Technologies (M) Sdn Bhd — has signed a term sheet with GreenTech Malaysia Alliances Sdn Bhd, a wholly-owned subsidiary under the Malaysian Green Technology and Climate Change Corporation, to accelerate the development of electric vehicle (EV) charging infrastructure in Malaysia. According to the term sheet, Yinson will hold a majority stake in the joint venture, which will provide EV charging stations in Malaysia.
MHC Plantations Bhd’s net profit jumped 118.9% to RM11.48 million for the third quarter ended Sept 30, 2021, from RM5.24 million a year ago, on the back of improved profitability at both its plantation and oil mill segments. Quarterly revenue increased 75.72% to a record RM168 million, from RM95.6 million previously.
Deleum Bhd has bagged two contract extensions from Petronas Carigali Sdn Bhd (PCSB) for the provision of slickline equipment and services and provision of gas lift valves (GLV) & insert strings equipment, accessories and services. The value of the contracts will depend on the agreed rates and the work order issued by PCSB.
Shareholders of Ancom Bhd gave the green light for the company to take over all assets and liabilities of Nylex (Malaysia) Bhd for RM179.3 million (RM1 per Nylex share) at the group’s extraordinary general meeting on Tuesday. As Ancom currently holds a 50.3% stake in Nylex, the net amount payable to the latter will be RM96.7 million, following the set-off arrangement for the 49.7% stake it does not own. The acquisition will be satisfied via cash payment of RM50 million and the issuance of 31.1 million new Ancom shares valued at RM46.7 million (fixed at RM1.50 per Ancom share).
Globetronics Technology Bhd's net profit for the third quarter ended Sept 30, 2021 slipped 9.8% to RM16.27 million, from RM18.03 million a year earlier, due to lower volume loadings from certain customers and a drop in economies of scale. Quarterly revenue fell 15% to RM55.66 million from RM65.54 million.
Bursa Malaysia Bhd has disposed of its remaining 75,250 shares of CME Group Inc (previously known as Chicago Mercantile Exchange Holdings Inc) Class A common stock, for US$16.37 million (RM67.93 million). This came after the local exchange’s previous sale of 50,000 shares for US$10.86 million and 65,000 shares for US$14.19 million, as reported on May 25 and Oct 22. Bursa Malaysia said the 75,250 shares were sold in two transactions on Oct 22 (30,000 shares) and Oct 25 (45,250 shares) in the open market on the Nasdaq Stock Market.
Ajiya Bhd's net profit dropped 32.43% to RM1.49 million for the third quarter ended Aug 31, 2021, from RM2.21 million a year ago, as revenue was hit by the Full Movement Control Order restrictions implemented on June 1. Revenue contracted significantly by 65.64% to RM24.03 million, from RM69.93 million in the same quarter last year.
Mestron Holdings Bhd targets to win 30% of orders for the total of 1,661 telecommunication towers to be constructed under Phase One of the National Digital Network (JENDELA) initiative. The steel pole maker said Sarawak alone would require the construction of 600 towers under the plan and Mestron was expected to benefit from its strong track record in the state. Managing director Por Teong Eng said the strong progress by JENDELA would drive demand for the group’s specialty pole products such as high mast and telecommunication monopole that is vital for the development of telecommunication infrastructure.
Sarawak Consolidated Industries Bhd (SCIB) said Bursa Malaysia Securities has rejected its application for an extension of time until Dec 31 to issue its annual report for the year ended June 30, 2021. The group has appealed against the decision to reject the request made on Oct 8. If the rejection of the extension of time request is maintained, trading in the shares of SCIB will be suspended from Nov 9.