Stocks In Focus (08-12-2017)

(Dec 7): Based on corporate announcements and news flow today, stocks in focus on Friday (Dec 8) may include: Sapura Energy Bhd, Supermax Corp Bhd, SCGM Bhd, Poh Kong Holdings Bhd, ML Global Bhd, Acoustech Bhd, LCTH Corp Bhd and MQ Technology Bhd.

Sapura Energy Bhd, which saw some 20% of its market value wiped out today as its shares plunged to a record low, fell into the red after posting a net loss of RM274.41 million in its third quarter ended Oct 31, 2017 (3QFY18), compared to a net profit of RM158.06 million a year ago.

The net loss was a result of lower revenue from engineering, construction and drilling business segments, as well as lower contribution from its share of profit from joint ventures. Quarterly revenue fell 42% year-on-year to RM1.28 billion from RM2.22 billion.

For the cumulative nine months (9MFY18), the group recorded a net loss of RM217.95 million compared to a net profit of RM380.64 million a year ago, while revenue fell 19% to RM4.71 billion from RM5.84 billion in 9MFY17.

Supermax Corp Bhd is applying for leave from the court to allow its now former group managing director (MD) Datuk Seri Stanley Thai to be reappointed as a director or to act in such a capacity for the group.

In a filing with Bursa today, Supermax said its board of directors, after having considered advice from the group’s solicitors, has authorised its lawyers to make the application under Section 198(4) of the Companies Act 2016, and Section 318 (1) of the Capital Markets and Services Act 2007.

According to provision in the Companies Act, Stanley may be allowed to be a director with the leave of the court even if he has been disqualified due to a conviction.

In a separate filing, Supermax said Stanley had relinquished his post as MD on Nov 24.

SCGM Bhd’s net profit slipped 3.1% to RM5.26 million in the second quarter ended Oct 31, 2017 (2QFY18) from RM5.43 million a year ago, due to a change in sales mix and higher cost of raw materials during the current quarter under review.

Earnings per share fell to 2.74 sen in 2QFY18 from 4.11 sen in 2QFY17.

Quarterly revenue, however, was up 24% to RM52.11 million from RM42.02 million in 2QFY17, mainly due to strong domestic sales as a result of intensified marketing efforts and increased capacity from the recently commissioned Klang Valley .

The group also declared a second interim dividend of 1.5 sen for the ending April 30, 2018 (FY18), payable on Jan 12, 2018.

Poh Kong Holdings Bhd’s net profit tripled to RM5.36 million in the first financial quarter ended Oct 31, 2017 (1QFY18) from RM1.77 million a year ago, on increased demand for jewellery and investment products.

It also attributed its improved earnings to higher retail gold prices and additional revenue contributed from new outlets in the current quarter under review.

Earnings per share increased to 1.31 sen from 43 sen in 1QFY17.
Quarterly revenue grew 19.1% to RM220.93 million in 1QFY18 from RM185.47 million in 1QFY17, largely derived from the retail segment.

ML Global Bhd, whose hit a seven-year high of RM1.74 on Nov 28, has secured a RM78.05 million contract to build a 24-storey apartment in Bandar Sunway, Selangor.

The project comprises 359 apartment units and one level podium of facilities, four levels of podium car park and one level of semi-basement car park.

Acoustech Bhd is exiting its loss-making audio business with the disposal of its wholly-owned subsidiary Formosa Prosonic Technics Sdn Bhd (FPT) to speaker systems manufacturer Formosa Prosonic Industries Bhd for RM10.6 million.

FPT manufactures moulded plastic components for speaker systems. Upon completion of the proposed disposal, Acoustech will focus on its profitable property development business.

In a filing with Bursa Malaysia today, Acoustech said it had entered into a share sale agreement with Formosa Prosonic for the proposed disposal, which will result in Acoustech incurring an estimated one-off loss of RM1.18 million. The group acquired FPT on June 15, 2001 at an original cost of RM47.61 million.

LCTH Corp Bhd’s major shareholder Fu Yu Investment Pte Ltd has launched a bid to take the precision plastic parts manufacturer private through a selective capital reduction (SCR) and cash repayment of RM61.31 million or 58 sen per share, amid a challenging business landscape.

Fu Yu, which owns 254.3 million shares or 70.64% shareholding in LCTH, and the parties acting in concert in the proposed exercise, collectively hold 258.66 million or 71.84% in the company.

The 58 sen offer price is a 32% premium to LCTH’s closing price of 44 sen yesterday, which values it at RM158.4 million. The counter has been in a 52-week range of 43 sen to 63 sen.

Hard disk drive parts maker MQ Technology Bhd (MQ Tech) plans to diversify into providing marketing services and manpower for gaming-related businesses, and proposes a private placement to raise some RM4.15 million for that purpose.

This follows the marketing agreement it inked with Vivo Tower Holdings Ltd today to exclusively develop and implement marketing services, as well as manpower, for Vivo Tower’s operations in designated gaming and entertainment rooms in the Star Vegas Resort & Club in Poipet, .

MQ Tech said it expects a 25% contribution or more to its net profit from the diversification, which may cause a diversion of 25% or more of its net assets.

Source: The Edge Markets

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.