Stock in Focus [21-09-2017]

(Sep 20): Based on the corporate announcements and news flow today, stocks in focus on Thursday (Sep 21) may include: Daya Materials, Econpile, PPB Group, YFG, Lotte Chemical, HSL, AHB Holdings, BToto, Datasonic and Hai-O.

Daya Materials Bhd, which has exited the offshore subsea construction business following the sale of Siem Daya 1, said it is now channelling its resources into infrastructure, especially rail-related jobs.

“Our exit from the offshore subsea business will allow us to focus on our core profitable businesses, and our financial results will no longer be dragged down by the aforementioned loss-making business.

“We are channelling the group’s resources into infrastructure, especially for rail-related projects, and are in the midst of negotiating with the relevant parties to secure contracts relating to rail engineering,” said its group chief executive officer Datuk TS Lim.

Lim said the successful completion of those talks and those contracts’ implementation will contribute positively to the group’s earnings over the next few years.

Econpile Holdings Bhd has secured an RM18 million contract for the Pavilion Damansara Heights Phase 2 mixed development project.

In a filing, the group said its wholly-owned unit Econpile (M) Sdn Bhd was awarded the contract to undertake contiguous bored pile works by Jendela Mayang Sdn Bhd. The contract is for 27 weeks and expected to be completed in April 2018.

PPB Group Bhd is disposing of its entire equity interest in Tefel Packaging Industries Co Ltd in Myanmar for US$2.4 million (RM10.06 million).

PPB’s 79.9%-owned indirect subsidiary Tego Sdn Bhd inked an agreement to transfer its entire 100% stake in Tefel Packaging Industries Co Ltd — a polypropylene bags manufacturer — to Messrs Natthi Cholsaipant and Tanapat Cholsaipant.

Tego’s parent company is FFM Bhd, which is owned 80% by PBB and 20% by Wilmar International Ltd via PGEO Group Sdn Bhd.

“The proposed disposal is an opportunity for the FFM group to divest an unprofitable non-core business activity,” PPB said in a filing with Bursa .

Practice Note 17 (PN17) company YFG Bhd has secured an extension until March 18 next year from the court today for the restraining order it obtained against its creditors last year to facilitate the regularisation of its financial condition.

The restraining order, obtained in last year, was originally scheduled to expire today.

A fire broke out at Lotte Chemical Titan Holding Bhd‘s plant in Pasir Gudang, Johor, earlier today, a company spokesperson said.

The extent of the damage from the fire cannot be confirmed at this juncture. However, Lotte Chemical is slated to issue an announcement on the incident, the spokesperson said.

Lotte Chemical’s Pasir Gudang integrated facility houses nine of its 11 Malaysian chemical manufacturing plants.

The integrated facility is connected via dedicated underground pipelines to another integrated site in Tanjung Langsat 12km away, where the two other plants are located.

Hock Seng Lee Bhd (HSL) said today the series of litigations involving the -based group and the Yu/Yii family since December last year “is concluded” with the consent of both sides.

“The Court of Appeal had, by consent of parties, granted an order to set aside the order of the High Court previously granted on June 29, 2017.

“The appeal was thereafter withdrawn and struck out accordingly,” the group said in a filing with Bursa Malaysia.

AHB Holdings Bhd, an office interior products producer, is planning to raise between RM5.04 million and RM7.28 million via private placement to raise money for working capital and capital expenditure.

AHB is issuing up to 23.17 million shares, equivalent to 10% of its share capital, to selected investors at a discount of not more than 10% of the five-day weighted average price calculated up to the price-fixing date.

Berjaya Sports Toto Bhd’s (BToto) net profit grew 26.5% to RM74.3 million, or 5.51 sen per share, for the first quarter of ended July 31 (1QFY18) from RM58.7 million or 4.36 sen per share in the previous corresponding quarter.

The higher earnings were boosted by improved results of luxury car dealer H.R. Owen Plc (HR Owen), in which BToto holds an effective 86.8% stake, and foreign exchange gain recognized by a foreign subsidiary company in the financial quarter under review.

For the current quarter, the group’s revenue edged higher by 2.5% to RM1.47 billion from RM1.44 billion.

The board declared a first interim dividend of four sen per share in respect of the financial year ending April 30, 2018 (FY18) and payable on Oct 24. The ex-date for the dividend payment is Oct 6.

Datasonic Group Bhd, which produces identity cards and passports in Malaysia, is expanding its smart card business to Indonesia, which marks its maiden overseas venture.

In a filing with Bursa Malaysia, the group said it had set up a subsidiary in Indonesia called PT Datasonic Teknologi Indonesia to facilitate the expansion.

When contacted, a senior staff at Datasonic said the incorporation of the subsidiary is part of the group’s plan to expand its international footprint, especially in the personalised smart card industry, which is valued by Ireland-based Research and Markets at US$6.7 billion in 2016.

Hai-O Enterprise Bhd announced an 83.35% growth in net profit for its first quarter ended July 31, 2017 (1QFY18) from RM9.74 million to RM17.87 million, thanks to higher sales of its products and additional sales from newly recruited members.

Quarterly revenue came in 58.32% higher at RM124.54 million, compared with RM78.66 million in the corresponding quarter in the preceding year, mainly attributable to higher contribution from its multi-level marketing (MLM) and retail divisions.

Overall, net margin improved by 2.1% as a result of higher sales of its premium products and improvement in operational efficiency.

Source: The Edge Markets

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