KUALA LUMPUR (Dec 8): Based on corporate news flow and announcements today, stocks in focus tomorrow (Wednesday, Dec 9) could include: TNB, MMC Corp, DRB-Hicom, Willowglen MSC, Cepatwawasan, Eduspec, Ideal Sun City, Astro Malaysia and Spring Gallery.
Households in Peninsular Malaysia will pay 0.73 sen more for electricity usage for the next six months starting Jan 1, as the government has decided to reduce the rebate on power tariff to 1.52 sen per kilowatt-hour (kWh), from 2.25 sen per kWh currently.
This rebate will be applicable to all consumers, except domestic consumers with monthly consumption of 300 kWh and below.
Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili said the rebate for electricity users in Sabah and Labuan will remain the same at 1.20 sen per kWh.
The latest revision is part of the scheduled six-month review to take into account of the fluctuation of costs of fuel, such as natural gas and coal.
In a filing with Bursa Malaysia today, Tenaga Nasional Bhd (TNB) said the impact of the ICPT implementation is neutral on the utility company, and will not have any effect to its business operations and financial position.
MMC Corp Bhd's unit, Johor Port Bhd, will offer logistic services to Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor.
MMC said Johor Port will manage the logistic functions at the Teluk Ramunia material offloading facility (MOLF), from which cargo will be transported to the Rapid site.
The port will provide comprehensive services ranging from marine services, manpower, equipment and system, to operate and manage the Teluk Ramunia MOLF.
DRB-Hicom Bhd’s unit, Proton Holdings Bhd, may increase car prices from January 2016, due to the weaker ringgit, which affects the company’s operation costs and the entire eco-system chain from the vendors to the company.
In a statement today, Proton's chief executive officer Datuk Abdul Harith Abdullah said the price increase is needed, as a weaker ringgit had led to costlier material imports for the Malaysian national car maker.
He said Proton is evaluating its price structure and the increase quantum will depend on the car models.
Willowglen MSC Bhd’s wholly-owned subsidiary, Willowglen Services Pte Ltd, has clinched a RM6.94 million contract from Incsys Pte Ltd for integrated security and operation surveillance system (ISOSS) works in Singapore.
The commencement date of the contract is on Oct 21, 2015 and will be completed by Oct 30, 2017, it said.
The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2016 to 2017.
Plantation company Cepatwawasan Group Bhd expects to recognise a gain of RM2 million to its pre-tax profit for the financial year ending Dec 31, 2015 (FY15), following the termination of two emission reductions purchase agreements with NE Climate A/S.
Cepatwawasan’s subsidiaries, Mistral Engineering Sdn Bhd and Cash Horse Sdn Bhd, have entered into two agreements for the purpose of terminating and cancelling the respective emission reductions purchase deals, entered with NE on Oct 11, 2010.
This includes the respective supplemental agreements signed on May 31, 2011.
It said the terminations were due to a number of factors, including high equipment maintenance costs associated with monitoring the low level of certified emission reductions (CERs) currently being generated by the biogas plant; and a lack of interest in purchasing CERs, particularly from the eurozone.
Cepatwawasan expects to receive the termination compensation, totalling RM2 million, in three payments, over the next two years.
Education provider Eduspec Holdings Bhd will grant an exclusive distribution rights of its education products to CM Asia Learnings Pte Ltd, after signing a master distribution agreement with the Singapore-based software solutions provider.
Additionally, Eduspec will acquire a 19.35% stakes of CM Asia, upon execution of the agreement.
Eduspec had on Dec 7, signed the agreement with CM Asia, whereby the company grants an exclusive distribution rights within the designated markets and the right to appoint resellers or distributor to distribute Science Technology Engineering Mathematics (STEM) Education Using Robotics, Stem Computer Science For Schools Program (STEM CS) and Software Development Program (SDP) to CM Asia.
A cash deposit of US$1 million or S$1.4 million will be paid to Eduspec, within 10 days from the effective date of the agreement.
Eduspec said the agreement is to enhance the development of the market and increase the sales of its products in the designated markets, through cooperation with CM Asia, which has processed a readily-available sales network in the territory.
Ideal Sun City Holdings Bhd (ISCH) plans to raise up to RM16.6 million via a special issue of 34.7 million new shares to independent third party Bumiputra investors, yet to be identified.
The proceeds, ranging between at least RM12.7 million and up to a maximum of RM16.6 million, will be utilised for future property investment and working capital expenses.
The Penang-based company also proposed the establishment of an employees’ share option scheme (ESOS) of up to 30% of the total issued and paid-up share capital (excluding treasury shares, if any), at any point in time during the duration of the ESOS.
The issue price of the special issue shares will not be lower than the par value of ISCH shares of 10 sen.
Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposed special issue is expected to be completed by the second quarter of 2016.
Astro Malaysia Holdings Bhd, the country's largest pay television provider, reported a net profit of RM106.01 million or 2.04 sen a share for the three months to Oct 31, 2015 (3QFY16), down 6.5% from RM113.41 million or 2.18 sen a share in the same period a year ago, due to higher finance costs.
Revenue for 3QFY16, however, rose 7.4% to RM1.37 billion, from RM1.28 billion in 3QFY15, on higher subscription, advertising, and merchandise sales from its home-shopping business.
Astro's average revenue per user (ARPU) for 3QFY16 grew to RM99.30 from RM98.50 in 3QFY15, supported by the take-up of value-added services.
The group also declared a third interim dividend of 2.75 sen per share for the financial year ending Jan 31, 2016 (FY16), payable on Jan 7, 2016. It was 22% higher than last year.
Meanwhile, the group's share of advertising expenditure and radio expenditure grew to 34% and 60.5% respectively, supported by higher TV viewership and radio listenership.
Ceramics maker turned property-construction company, Spring Gallery Bhd, is banking on the untapped East Coast property market for its future growth.
The group had on Nov 12, 2015 received its second managing contractor agreement worth some RM147 million for the development of a three-storey shopping complex and a 12-storey three star hotel in the Kemaman district, Terengganu.
Prior to receiving the managing contractor agreement for the shopping complex and three star hotel, the group had on July 9, 2015 secured its first property development project, known as Southern City Phase 1B — an 18-storey apartment in Kemaman.
The group’s construction business currently makes up roughly 25% of its total revenue, with the rest coming from its core activity in the ceramics segment, according to its executive director, Kuan Poh Huat.
(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.)