NOTABLE filings

Between Jan 12 and 16, notable shareholding changes in Bursa Malaysia-listed companies included the disposal of 340,000 APM Automotive Holdings Bhd shares by Mondrian Investment Partners Ltd (England & Wales). APM (fundamental: 2.5; valuation: 1.8) manufactures parts for the automotive industry.

After the disposal, Mondrian’s holding dropped to some 9.7 million APM shares and it ceased to be a substantial shareholder.

ETI Tech Corp Bhd (fundamental: 0.15; valuation: 0.3) saw 74.03 million of its shares, issued as part of a debt settlement scheme on Jan 9, acquired by Standard Chartered Bank Malaysia Bhd. Hong Leong Financial Group Bhd will also pick up 95.01 million shares as part of the same debt settlement.

Meanwhile, Merrill Lynch International (UK) acquired 40.24 million shares or a 5.03% stake in Destini Bhd (fundamental: 1.4; valuation: 1.8). By virtue of the acquisition, US-based NB Holdings Corp was deemed to have an indirect interest of 5.03% as well. Destini provides maintenance, repair and overhaul services for the aviation, marine and oil and gas industries.

Jiankun MB International Holdings Sdn Bhd ceased to be a substantial shareholder in loss-making property developer Jiankun International Bhd after it disposed of three million shares on Jan 12. At the same time, Datuk Lim Siang Chai bought 492,000 Jiankun International shares on the market. Jiankun International (fundamental: 2.1, valuation: 0.0) was formerly known as Nagamas International Bhd while Jiankun MB was formerly known as MB Longi Sdn Bhd.  

Sumatec Resources Bhd (fundamental: 2.6; valuation: 0.3) saw non-independent, non-executive director Chan Yok Peng dispose of 10 million shares on the market via his vehicle Tekad Mulia Sdn Bhd. The shares were sold at an average price of 20.2 sen apiece on Jan 13. Chan retains 175.48 million shares or a 5.04% stake in the company, which has ventured into oil and gas production in Kazakhstan, through Tekad Mulia.

Over at Masterskill Education Group Bhd (fundamental: 1.2; valuation 0.6), major shareholder Siva Kumar Jeyapalan disposed of 29.16 million shares on Jan 13. Recall that Arenga Pinnata Sdn Bhd, a unit of Brahmal Vasudevan’s private equity firm Creador II LLC, made a conditional offer for the remaining Masterskill shares it does not own at 60 sen apiece on Jan 12.

Notable moves

Top Glove Corp Bhd (fundamental: 2.5; valuation: 0.9) saw the emergence of Australia-based Northcape Capital Pty Ltd as a substantial shareholder with the acquisition of 30.97 million of its shares or a 5.02% stake on the market. Northcape is still acquiring Top Glove shares.

The glove maker’s share price has risen from a 52-week low of RM4.177 to RM4.88 last Wednesday, as the ringgit continues to weaken.

Gunung Capital Bhd (fundamental: 3; valuation: 0.6) saw its share price slip 9.5% to 76 sen last Wednesday, on news that this year’s National Service programme will be deferred, which could affect Gunung as it has a concession to provide bus services under the programme.

Chief executive Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal acquired 2.2 million Gunung shares in off-market deals on Jan 15 and 16. Meanwhile, substantial shareholder Ooi Hock Lai acquired 50,000 shares on the market.

Defence Minister Datuk Seri Hishammuddin Hussein has clarified that the pause in the programme will not affect the operators.

Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.

This article first appeared in The Edge Malaysia Weekly, on January 26 - February 1, 2015.

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