KUALA LUMPUR (Oct 13): Based on corporate announcements and news flow today, companies that might be in focus on Monday (Oct 16) include Xin Hwa Holdings Bhd, Top Glove Corp Bhd, Muar Ban Lee Group Bhd, M-Mode Bhd, Symphony Life Bhd and Supercomnet Technologies Bhd.
Integrated logistics services provider Xin Hwa Holdings Bhd has bagged RM13.7 million worth of contracts to transport precast segmental box girders and crossbeam for the construction of viaduct guideways and other associated works of the Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line (MRT Line 2).
Xin Hwa said its wholly-owned subsidiary Xin Hwa Trading & Transport Sdn Bhd has accepted a total of six Letters of Award (LoAs) for the proposed jobs.
The actual value of the jobs will, however, depend on the total tonnage of precast structures to be delivered over the period of the LoAs at a predetermined unit rate.
Top Glove Corp Bhd, the world's largest rubber glove maker, saw its fourth quarter net profit jump 51% year-on-year (y-o-y) on higher sales volume, which increased by 13% y-o-y.
Net profit grew to RM98.62 million in the three months ended Aug 31, 2017 (4QFY17) from RM65.32 million a year ago, while earnings per share grew to 7.87 sen from 5.21 sen in 4QFY16.
Quarterly revenue expanded 25% to RM902.42 million from RM722.11 million in 4QFY16.
It also proposed a final dividend of 8.5 sen per share amounting to RM106.6 million for the financial year ended Aug 31, 2017 (FY17).
Palm oil machine manufacturer Muar Ban Lee Group Bhd plans to place out up to 10% of its issued shares to independent third party investor or investors, which could raise some RM10 million to repay its bank borrowings.
It said the proposed private placement would entail the issuance of up to 9.12 million new shares at an issue price to be determined and announced at a later date.
For illustrative purposes, it said the shares could be priced at RM1.10 apiece, a 5.8% discount to the volume weighted average market price of its shares for the five market days up to Oct 10 of RM1.1677. This would raise about RM10.04 million.
Loss-making M-Mode Bhd has proposed to venture into construction business as part of its strategy to look for additional income.
“The board of directors believes that the proposed diversification would contribute positively to M-Mode’s future earnings, and improve the financial position,” the company.
Currently, M-Mode is a provider of mobile content and data application services, producer and distributor of magazines, and a media advertising agent.
Property developer Symphony Life Bhd is compelled to re-acquire a property investment company it sold to Octane Capital Sdn Bhd (OCSB) after failing to complete a land transfer condition in its original sale agreement.
Symphony Life said it entered into a share sale agreement (SSA) today to buy back Midah Jaya Realty Sdn Bhd from OCSB for RM9.03 million.
The group is also expected to compensate OCSB the legal fee and stamp duty it incurred in the initial SSA amounting to RM30,000, and up to RM300,000 funding cost.
Supercomnet Technologies Bhd is acquiring the remaining 80% stake in Supercomal Medical Products Sdn Bhd (SMP) in a related party deal.
Supercomnet said it is buying the stake from Shiue Jong-Zone and persons acting in concert for RM80 million — about 1.7 times its market capitalisation of RM47.39 million.
Shiue is the managing director of Supercomnet, with a 19.09% direct stake in the company.
The acquisition will be satisfied via a cash payment of RM4 million and the issue of 400 million new Supercomnet shares — about 1.65 times its current outstanding shares — at 19 sen apiece. This represents a 5% discount to its last closing share price of 20 sen.