Top Glove, GENM, WCT, Kejuruteraan Asastera, Censof Holdings and FGV Holdings

Top Glove, GENM, WCT, Kejuruteraan Asastera, Censof Holdings and FGV Holdings
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KUALA LUMPUR (March 19): Based on corporate announcements and news flow today, companies that may be in focus on Friday (March 20) may include the following: Top Glove Corp Bhd, Genting Malaysia Bhd (GENM), WCT Holdings Bhd, Kejuruteraan Asastera Bhd (KAB), Censof Holdings Bhd and FGV Holdings Bhd.

Top Glove Corp Bhd's net profit in the second quarter ended Feb 29, 2020 (2QFY20) rose 9.35% to RM115.68 million from RM105.79 million in the year-ago quarter, thanks to tax incentives from ongoing expansion and higher revenue.

Revenue for the quarter rose 6.02% to RM1.23 billion from RM1.16 billion in 2QFY19, due largely to its nitrile glove segment, which saw a 14% year-on-year (y-o-y) increase in sales volume.

The group currently operates 711 lines producing 73.4 billion pieces of gloves per year. At over 90% capacity, Top Glove said it can ramp up production to 100%, added with new capacity coming onstream.

Genting Malaysia Bhd (GENM) has entered into a subscription agreement with Nasdaq-listed Empire Resorts Inc to inject US$40 million (RM174.8 million) into the latter, through subscribing to Empire Resorts Series G Preferred Stock, with a maturity date of Dec 31, 2038.

The salient terms of the Series G Preferred Stock are that it is senior to Empire’s common stock, it is convertible at any time on or after Dec 31, 2030 and prior to the maturity date at a conversion price of US$20 per common stock, and it has an automatic conversion on maturity date at US$20 per common stock.

WCT Holdings Bhd’s wholly-owned subsidiary WCT Bhd has accepted the letter of award (LoA) for an estimated RM1.2 billion contract to undertake superstructure works within parcel 2 of the Pavilion Damansara Heights mixed development near Pusat Bandar Damansara here.

WCT Holdings said the LoA is from Jendela Mayang Sdn Bhd, which is linked to WCT Holdings executive chairman Tan Sri Lim Siew Choon.

Electrical and mechanical engineering company Kejuruteraan Asastera Bhd (KAB) has called off its solar energy investment venture with LeveragEdge Sdn Bhd (LSB).

“Upon the termination, LSB shall refund the initial deposit of RM1,000 to KAB within three working days and the HoA shall have no further force or effect and neither party shall have claim whatsoever against the other, whether directly or indirectly in respect of the HoA,” it said.

Censof Holdings Bhd was forced to liquidate an additional 61.51 million shares, equivalent to a 3.5% stake in Dagang Nexchange Bhd (DNeX) yesterday, due to another round of margin call.

“The original cost of investment for the 61.51 million DNeX shares was RM12.53 million. As such, the share disposal is expected to book a total loss of RM16.56 million at group level and loss of RM8.16 million at company level,” it said.

FGV Holdings Bhd said its plantation segment has resumed activities with a minimum number of workers, supported by the logistics and support businesses sector.

FGV referred to the Ministry of Plantation Industries and Commodities’s statement, which provided an exemption for the agricultural and commodity sectors to operate during the Movement Control Order.