Stocks In Focus [29-09-2017]
KUALA LUMPUR (Sept 28): Based on corporate announcements and news flow today, stocks in focus tomorrow (Sept 29) may include: Damansara Realty, Mah Sing, Kimlun, Maybank, JHM Consolidation, Globaltec, Matang, Muar Ban Lee, MCE, George Kent, Jaycorp, Kim Loong, Berjaya Corp, Berjaya Media, Gamuda and SYF.
Damansara Realty Bhd has secured the renewal of five contracts from Telekom Malaysia Bhd for integrated facilities management (IFM) services worth RM5 million.
The one-year renewals are for the comprehensive management of civil, mechanical and electrical services for several TM buildings including Menara TM, TM Annexe 1 & 2, Menara Celcom and Wisma TM Taman Desa.
Mah Sing Group Bhd has awarded a RM50 million contract to Kimlun Corp Bhd to build a connecting road to the Tanjung Langsat–Cahaya Baru Toll Connecting Highway in Johor
Work for the construction — which will improve accessibility to Mah Sing’s township development “Meridin East” — is set to begin in the first quarter of 2018, with completion scheduled at end-2020.
Malayan Banking Bhd (Maybank) has acquired a 75% stake in Indonesian general insurance company PT Asuransi Asoka Mas from PT Transpacific Mutualcapita for 207.2 billion rupiah (RM64.92 million). Transpacific will keep the remaining 25% stake in Asoka, said Maybank.
JHM Consolidation Bhd is acquiring Mace Instrumentation Sdn Bhd for RM48 million — to be paid via 16 million new shares in JHM at RM3 apiece.
Subsequently, JHM has proposed a one-to-two share split at a date to be determined later.
Globaltec Formation Bhd has inked an MoU with Indonesian state-owned oil corporation PT Pertamina Gas to explore the supply of coal bed methane gas for distribution to consumers in Indonesia’s Sumatra island.
Under the MoU, NuEnergy and Pertamina Gas have agreed to exchange information and to jointly evaluate the economic viability of CBM gas supply from Tanjung Enim Production Sharing Contract’s initial Plan of Development.
Matang Bhd‘s plan to acquire two parcels of leasehold agricultural land with property erected thereupon in Raub, Pahang, for RM180 million was held back by an injunction granted by the High Court.
The company today received a letter from one of the parties involved in the sale, Raub Mining & Development Co Sdn Bhd, informing it that the disposal of the assets will be put on hold due to the injunction.
Muar Ban Lee Group Bhd will no longer be disposing of its oil palm unit, Sokor Gemilang Ladang Sdn Bhd, as the non-binding preliminary agreement inked with furniture maker Everhome International (M) Sdn Bhd, has expired.
It announced in March its plan to sell the unit — which owns the right to develop 789ha of land into an oil palm or rubber plantation — to Everhome International for RM35.1 million.
MCE Holdings Bhd has bagged contracts worth RM33 million to supply various electronic and mechatronic components and parts for Perodua’s new car models.
The automotive parts manufacturer and trader said the job — with an expected total investment cost of RM1 million — is expected to begin sometime between May and July next year, and is for a seven-year period.
Meanwhile, it posted a net loss of RM671,000 in its fourth quarter ended July 31, 2017, compared with a net profit of RM229,000 a year earlier as revenue fell 22% to RM14.3 million from lower demand for original equipment manufacturer (OEM) products.
It however made a net profit of RM1.25 million in FY17 from a net loss of RM2.29 million in FY16, while revenue inched up 4% to RM80.17 million from RM76.90 million.
George Kent (M) Bhd’s net profit for the second quarter ended July 31, 2017 rose 24% to RM25.37 million from RM20.51 million a year earlier, thanks to higher contribution from both its engineering and metering divisions.
Revenue rose 14% to RM187.57 million, from RM164.77 million. The group declared an interim single-tier dividend of 2.5 sen per share to be paid on Nov 9.
Cumulative half-year net profit climbed 23.51% to RM43.87 million from RM35.52 million in the previous corresponding period.
Jaycorp Bhd’s net profit for the fourth quarter ended July 31, 2017 rose 42.3% to RM7.4 million, from RM5.2 million a year earlier, on higher contribution from its furniture segment. Revenue grew 18.2% to RM80.5 million from RM68.1 million.
The board has proposed a final dividend of six sen per share, bringing total payout for the current year to 11 sen, as opposed to 10 sen in the previous year.
For the full-FY17, net profit went up 18% to RM24.8 million from RM21 million in FY16, while revenue climbed 8.1% to RM312.8 million from RM289.4 million.
Higher oil palm output and prices helped Kim Loong Resources Bhd record a 61.6% jump in net profit to RM27.54 million for its second quarter ended July 31, 2017, from RM17.04 million a year earlier.
Revenue came in at RM260.46 million, up 23.6% compared with RM210.8 million last year. The group has declared an interim single-tier dividend of 9 sen, payable on Nov 21.
Cumulative net profit for the first half of the year rose 76% to RM51.85 million from RM29.45 million in the same period of the previous year, while revenue improved 32.8% to RM516.11 million, from RM388.5 million.
Lower tax expense has helped Berjaya Corp Bhd narrow its net loss in the first quarter ended July 31, 2017 to RM43.4 million, from RM62.68 million a year earlier.
Pre-tax profit dropped 13.6% to RM62.25 million, dragged by lower income from its property investment and development business. The same caused its quarterly revenue to dip 1.16% to RM2.2 billion, from RM2.22 billion previously.
Meanwhile, PN-17 company Berjaya Media Bhd, which saw its first-quarter net loss narrow by 29.8% year-on-year, is exploring options including diversifying into new businesses outside the media sector.
Its quarterly net loss narrowed to RM1.49 million in the quarter ended July 31, 2017, from RM2.12 million a year ago, on lower impairment losses on investments. Revenue, however, fell 6.8% to RM10.12 million from RM10.86 million.
Gamuda Bhd reported a record high revenue of RM1.01 billion for its fourth quarter ended July 31, 2017, an increase of 64.9% compared with RM614.39 million a year earlier, thanks to more construction projects, and higher property sales in Vietnam.
Net profit fell 32% to RM102.75 million from RM152.1 million, due to a one-off impairment on its SMART tunnel project totalling RM98 million.
Full-year net profit slid 3.8% to RM602.09 million from RM626.13 million previously. Revenue rose 51.35% to RM3.21 billion from RM2.12 billion.
SYF Resources Bhd’s net profit for the fourth quarter ended July 31 fell 43.4% to RM4.4 million, from RM7.8 million previously, due to higher raw material costs, and a shortage of raw materials and labour.
Quarterly revenue however rose 2.1% to RM155.4 million from RM152.2 million a year earlier, as sales increased on-year.
For the full financial year, net profit slipped 8.7% to RM34.9 million, from RM38.2 million in the previous year. Revenue rose 14.3% to RM517.9 million from RM453.2 million.
Source: The Edge Markets