KUALA LUMPUR (June 21): Based on corporate announcements and news flow today, companies in focus tomorrow (Tuesday, June 22) may include: Axiata Group Bhd, Digi.Com Bhd, IHH Healthcare Bhd, Serba Dinamik Holdings Bhd, Nestle (M) Bhd, Cahya Mata Sarawak Bhd (CMS), Comfort Gloves Bhd, George Kent (Malaysia) Bhd, Rubberex Corp (M) Bhd, LTKM Bhd, Focus Dynamics Group Bhd and Saudee Group Bhd.
Axiata Group Bhd, Telenor Asia Pte Ltd and Digi.Com Bhd have successfully concluded the due diligence exercise and have inked the transaction agreements for the proposed merger of Celcom Axiata Bhd and Digi (MergeCo). In a joint statement today, the parties said the signing confirms the intent to establish a commercially stronger and more resilient digital converged service provider. Axiata and Telenor will each hold equal stakes of 33.1% respectively in MergeCo, which will continue to be listed on the local bourse, and will have a combined pre-synergy equity value of close to RM50 billion.
IHH Healthcare Bhd’s indirect 35.25%-owned associate Parkway Life Real Estate Investment Trust (Parkway Life REIT), which already has a foothold in two key markets in Singapore and Japan, plans to build a third key market which can enhance the property trust’s growth in the mid- to long term, according to Parkway Life REIT’s manager Parkway Trust Management Ltd. Parkway Trust said in its latest investor presentation slides that Parkway Life REIT will proactively engage in and foster multiple partnerships with strategically aligned parties for collaborative growth and expansion. Parkway Trust, however, did not say as to which third key market Parkway Life REIT is planning to expand into.
The Employees Provident Fund (EPF) has further trimmed its stake in Serba Dinamik Holdings Bhd, which is embroiled in audit issues with its external auditor KPMG PLT. The provident fund sold an additional 15.06 million shares or a 0.4% stake on the open market on June 15. Serba Dinamik also announced today that its former chairman Datuk Mohamed Nor Abu Bakar has resigned as its independent director due to personal reasons, days after he was redesignated from the chairman's position.
Nestle (M) Bhd has appointed Dr Tunku Alina Raja Muhd Alias as an independent non-executive director. She will also be appointed as a member of the group's governance, nomination and compensation committee, Nestle said.
Cahya Mata Sarawak Bhd (CMS) said Datuk Seri Yam Kong Choy and Ho Heng Chuan have resigned as directors of the group, effective today. Yam, 67, had served as a non-independent and non-executive director, while Ho, 64, was an independent and non-executive director. Both resigned due to their "other personal commitments”.
Comfort Gloves Bhd's net profit for the first quarter ended April 30, 2021 (1QFY22) surged by more than 13 times to RM219.13 million, from RM16.34 million a year earlier, on higher sales volume and average selling prices (ASPs), as well as better economies of scale. Revenue rose 254% to RM541.24 million against RM152.91 million for 1QFY21. Quarter-on-quarter (q-o-q), net profit grew 84.11% from RM137.87 million for 4QFY21, while revenue increased 69.72% from RM318.9 million. The group declared an interim dividend of four sen, to be paid on July 22.
George Kent (Malaysia) Bhd achieved a net profit of RM11.34 million for the two months ended March 31, 2021, on revenue of RM34.62 million. The group also reported a net profit of RM48.75 million on revenue of RM310.83 million for the 14-month period (FY21). The group has declared a third dividend of one sen per share for FY21, payable on July 28. George Kent said its FY21 performance was primarily attributed to robust sales of the group’s water meters worldwide.
Rubberex Corp (M) Bhd has proposed a private placement of up to 83.23 million shares or 10% of its share capital to raise RM78.65 million, to acquire 28 double-formers nitrile disposable glove production lines as part of its expansion in Perak, as well as for its working capital.
Meanwhile, LTKM Bhd has also proposed to undertake a private placement to raise up to RM11.71 million for its working capital.
Focus Dynamics Group Bhd has subscribed to 138.05 million rights issue shares of Saudee Group Bhd, equivalent to a 19.37% stake in the latter’s share capital. In a statement today, the group said the share subscription was pursuant to the memorandum of understanding inked by the two companies in relation to the rolling out of a robotics-based manufacturing facility and the development of robotic burger kiosks.