PETALING JAYA: Shares of Caely Bhd fell as much as 11.5% in early trade following its proposed bonus issue of warrants.
At 11.30am, the stock declined 9 sen or 6.9% to RM1.22 on some 3.32 million shares done.
The bonus issue involving 40 million new warrants will be undertaken on the basis of one warrant for every two existing shares held.
Assuming full exercise of the warrants at the indicative exercise price of 50 sen per warrant, the lingerie firm said it could potentially raise gross proceeds of RM20 million.
Proceeds are to be used for the repayment of borrowings and future working capital requirements.
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PETALING JAYA: LPI Capital Bhd’s net profit in the fourth quarter ended Dec 31, 2017 (Q4’FY17) increased 1.9% to RM83 million, from RM81.45 million in the previous corresponding quarter, mainly contributed by profit from the general insurance segment, which rose 4.3% to RM110.4 million.Revenue was up 2.2% to RM363.5 million compared with RM355.6 million in the same period in FY16.
Underwriting profit for the quarter grew 2.3% to RM93.2 million from RM91.1 million previously on the back of 8% growth in net earned premium income.
LPI’s full-year net profit dropped 28.2% to RM313.8 million against RM437.2 million in FY16, mainly due to the absence of non-recurring gains. Revenue soared 6.7% to RM1.47 billion from RM1.38 billion previously.
In view of the strong performance of the group, the group has declared a second interim dividend of 45 sen per share, which amounts to RM149.4 million.
Together with the first interim dividend of 27 sen per share amounting to RM89.6 million, which was paid in August 2017, the total dividend for FY17 of RM239 million represents 76.2% of the group’s net profit attributable to shareholders.
On prospects, the group’s founder and chairman Tan Sri Teh Hong Piow said the liberalisation (framework) process will continue to pose new challenges to the insurance industry.
“We are nevertheless confident that the group will be able to ride the challenges and take advantage of the opportunities presented to report another favourable performance for 2018,” he said in a statement.
Separately, LPI told Bursa Malaysia that it has proposed to undertake a bonus issue on the basis of one bonus share for every five existing shares held by shareholders.
The bonus issue, which entails an issuance of up to 66.4 million new shares, will be implemented by way of capitalisation of RM6.26 million from the share premium account and the remaining RM60.14 million from the retained earnings account.
LPI’s share capital will increase from RM338.24 million comprising 331.98 million shares to RM398.38 million comprising 398.38 million shares.
The exercise aims to reward the group’s existing shareholders for their loyalty and continuous support and increase the group’s share capital to a level which will better reflect its current scale of operations and assets employed. The bonus issue is expected to be completed in the second quarter of 2018.
LPI shares closed 56 sen or 3% higher at RM19.42 today on some 187,300 shares done.
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KUALA LUMPUR: China-based casual and sport-shoe maker Xidelang Holdings Ltd, which expects its profit for the financial year ending Dec 31, 2017 (FY17) to double from a year ago, will focus on merger and acquisitions (M&A), and e-commerce activities in FY18.
Managing director and CEO Ding Pengpeng said it will look for trading or manufacturing companies as its M&A targets and will launch activities after Chinese New Year.
“We’ve been talking to some companies, mainly local companies. Most are unlisted companies, but they are not small either,” he told reporters after its EGM today.
He said Xidelang has successfully switched from an original equipment manufacturer to original design manufacturer shoemaker and is internationally recognised for manufacturing some international brands.
“We will acquire if there’s a right company as we have to look into management and operations.”
Ding said the demand for casual and sporting shoes has increased due to changing consumers’ lifestyle, noting that Xidelang is on a growth trajectory.
In line with its plan to push the e-commerce business in FY18, he said Xidelang plans to convert 100 of its retail outlets in China to product showrooms next year.
It will roll out e-commerce in the first two quarters of FY18, leveraging on a combination of product showrooms (offline) and orders placed via the internet (online) simultaneously.
“Currently our online orders are still small. 2018 is to push the online business,” said Ding, adding that e-commerce will also be a new growth point for Xidelang in the future. It will be investing “tens of millions” of ringgit in the preliminary e-commerce business, mainly in systems.
“What we manufacture must tie in to what the information and market wants,” Ding said of its FY18 growth target.
He is confident that FY17’s profit will double from last year’s, based on the net profit reported in the first three quarters, which has exceeded last year’s. For the nine months ended Sept 30, 2017, Xidelang more than doubled its net profit to RM13.77 million from RM4.82 million a year ago.
At the EGM, shareholders approved its proposed bonus issue on the basis of one bonus share for every one existing share. It involves a bonus issue of up to 894.18 million new shares of US$0.04 (RM0.16) each, expected to be completed by first quarter of 2018.
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