KUALA LUMPUR (Nov 9): Based on corporate announcements and news flow today, companies that may be in focus on Wednesday (Nov 11) could include the following: Mulpha Int'l, Econpile, Iris, Axis REIT, Yong Tai, PRG, Ge-Shen, Malaysia Smelting, Bintulu Port, BHIC, StemLife, MPCorp, Affin Holdings, Huat Lai, Borneo Oil and S P Setia.
Mulpha International Bhd is proposing to raise up to RM266.71 million via a two-call rights issue of 1.07 billion new shares on the basis of one rights share for every two existing shares at an indicative issue price of 50 sen per rights share.
In a filing with Bursa Malaysia today, the property developer said the indicative issue price of 50 sen per rights share will be payable in two calls.
The indicative first call of 25 sen per rights share is payable in cash on application, and the indicative second call of 25 sen per rights share is to be capitalised from Mulpha's share premium.
Mulpha said RM200 million of the total proceeds will be allocated to repay borrowings, while RM65.63 million will be utilised for development expenditure and general working capital.
The remaining RM1.08 million will be catered for the expenses in relation to the proposals.
Subsequent to the rights issue, the group also proposed an exemption to relieve Yong Pit Chin, Mount Glory Investments Ltd (MGIL) and the person acting in concert with them from the obligation to undertake a mandatory takeover offer due to the increase in their interest in Mulpha, as a result of the undertaking of the rights shares.
As at April 20, Yong owned a 40.29% stake in Mulpha, while MGIL had a 33.03% stake.
Piling and foundation specialist Econpile Holdings Bhd has bagged a RM120.5 million contract to undertake excavation, piling and concrete works for Menara Felcra mixed development on Jalan Semarak here, bringing its order book to more than RM590 million.
Econpile said its wholly-owned subsidiary Econpile (M) Sdn Bhd had on Saturday received a letter of acceptance dated Oct 30 from WZR Property Sdn Bhd to undertake the proposed sub-structure works.
The duration of the contract is 18 months and is expected to be completed in May 2017.
The mixed development comprises a 35-storey office tower that will be the new headquarters of Felcra Bhd, a 43-storey residential tower consisting of 480 units of serviced apartments, as well as a six-storey commercial and retail block.
Econpile will undertake to provide bored piling and diaphragm wall works as well as the construction of four levels of basement using top-down construction method.
Electronic, digital identification and environmental solution provider Iris Corp Bhd is disposing of a 75% stake in its Thailand unit PJT Technology Co Ltd to Yunnan Water (Hong Kong) Co Ltd for RM103.15 million, as part of plans to unlock the value of assets that are not part of the group's core business.
In a filing today, Iris said it intends to utilise the proceeds raised from the deal to repay its outstanding loan to Standard Chartered Bank Offshore Labuan, while the balance will be retained for working capital.
Iris added that it expects its gearing to fall to 67.1% from 88.6% following the repayment of the outstanding loan to the bank and the completion of the proposed disposal based on its latest audited consolidated financial statement.
The group is targeting to complete the deal by Dec 31.
In a separate filing, Iris is undertaking a private placement to raise up to RM51.69 million for its working capital requirements and/or for future business projects/investments.
The group said these new shares, which represent about 10% of its total issued and paid-up share capital, are meant to be issued to independent third party investors to be identified later.
It added that the issue price will not be priced lower than 15 sen, being the par value of its shares.
Based on an indicative issue price of 22.5 sen, Iris expects to raise up to RM51.69 million, of which 98% or RM50.66 million will be utilised for working capital and/or for future business projects/investments.
However, Iris Corp said the new business and investments have not been determined.
The group said it expects the private placement to be completed by the first half of 2016.
Axis REIT Managers Bhd (ARMB), the manager of Axis Real Estate Investment Trust (Axis REIT), has aborted its plan to acquire an industrial facility in Port Klang, Selangor, from Haisan Resources Bhd for RM46 million cash.
Axis REIT said ARMB has terminated the proposed transaction given that both parties were unable to mutually agree on the terms of the proposed sale and purchase agreement (SPA) within the timeline contemplated by both parties under the letter of offer dated June 12.
On June 22, Axis REIT had offered to acquire an industrial facility erected on seven parcels of leasehold land in Port Klang from Haisan for RM46 million cash on an acquisition and leaseback arrangement.
Textile and garment retailer and trader Yong Tai Bhd is disposing of a parcel of land measuring 21,775 sq ft in Batu Pahat, Johor, to Teo Hock Chuan for RM1.3 million.
The piece of leasehold land comes with one unit of single-storey warehouse.
In a filing with Bursa Malaysia today, Yong Tai said its wholly-owned subsidiary Syarikat Koon Fuat Industries Sdn Bhd has signed a conditional SPA with Teo for the proposed disposal.
Out of the total proceeds from the sale, Yong Tai said RM700,000 will be used to repay existing bank borrowings to discharge the property, RM540,000 for working capital and RM60,000 for estimated expenses for the disposal.
It said the disposal offers an opportunity to unlock the value of its investment, and that the exercise is in line with its strategy to focus on its property development segment.
The group said its pre-tax earnings is expected to improve as a result of the recognition of gain on the proposed disposal of approximately RM478,000.
PRG Holdings Bhd is proposing to diversify its core business to include construction as it anticipates that the group's construction business may contribute to 25% or more of its net profit.
This followed the undertaking last year to build five blocks of apartments, one-storey gymnasium and swimming pool, and one-storey common facilities building in Ipoh.
The project is worth RM50.15 million and PRG said it is progressing ahead of schedule.
In a filing with Bursa Malaysia today, PRG said it will seek the approval of its shareholders for the proposal at the forthcoming extraordinary general meeting to be convened.
The construction division of the group currently operates under Premier Construction Sdn Bhd, which is a registered Grade G7 contractor with Construction Industry Development Board of Malaysia.
PRG said the proposed diversification complements the group's existing business in property development and enables the group to undertake complementary activities in property development, construction and project management services.
High precision plastic components maker Ge-Shen Corp Bhd saw its net profit jump more than 24-fold to RM7.39 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM288,000 a year ago, on contribution from its 75%-owned newly-acquired subsidiary Polyplas Sdn Bhd, better results from its existing plastic segment, disposal of loss-making subsidiaries and seasonally higher production volumes.
Earnings per share (EPS) rose to 9.6 sen from 0.37 sen.
Ge-Shen's revenue for 3QFY15 stood at RM45.12 million, an 82.7% increase from RM24.69 million in 3QFY14.
For the nine-month period (9MFY15), the group posted a net profit of RM10.86 million, which was more than sevenfold higher from RM1.28 million in 9MFY14, while revenue jumped 44.7% to RM99.08 million from RM68.47 million in 9MFY14.
EPS increased to 14.12 sen in 9MFY15, from 1.66 sen a year ago.
Moving forward, other than improving operating margins through operational efficiencies, Ge-Shen said it is also looking into increasing its manufacturing capacity via additional machineries and sophisticated technology.
In a separate filing with Bursa today, Ge-Shen said its executive director Chan Choong Kong has been redesignated as joint managing director (MD) effective immediately.
Malaysia Smelting Corp Bhd's (MSC) net profit jumped more than threefold to RM20.42 million or 20.4 sen a share for the third quarter ended Sept 30, 2015 (3QFY15) from RM4.72 million or 4.7 sen a share in 3QFY14 due to a favourable valuation adjustment on tin inventory arising from higher closing tin price.
However, the tin miner and metal producer said this was partially offset by the negative impact of foreign currency translation and the lower operating profit of its Rahman Hydraulic Tin mining operations.
Revenue for 3QFY15 came in 5.4% higher at RM557.49 million from RM528.93 million in 3QFY14, driven by higher sales quantity of refined tin.
For the cumulative nine-month period (9MFY15), it posted a net profit of RM2.63 million or 2.6 sen per share compared with a net loss of RM9.35 million or 9.4 sen per share last year.
Revenue for 9MFY15 was almost flat at RM1.39 billion versus RM1.38 billion in 9MFY14.
Going forward, MSC expects market conditions to remain challenging as the global commodity and resource sectors continued to be depressed resulting in lower commodity and metal prices including tin.
Despite these challenges, MSC said its Butterworth International Smelter and the Rahman Hydraulic Tin mine are still expected to perform satisfactorily for the current financial year.
Nevertheless, the group remains cautious and said that its financial results will continue to be impacted by tin price and foreign exchange (forex) fluctuations.
Bintulu Port Holdings Bhd saw its net profit for its third quarter ended Sept 30, 2015 (3QFY15) fall by 15.74% to RM29.23 million, from RM34.69 million a year ago, due to weaker revenue in its general cargo and container divisions.
EPS thus fell to 6.35 sen, from 7.54 sen.
In its quarterly report to Bursa Malaysia, the port operator also recommended a third interim dividend of six sen per share, with an ex-date of Dec 9, 2015.
Bintulu Port's total revenue for 3QFY15 was RM130.79 million, which was 1.97% lower compared to RM133.41 million last year.
For the nine-month period (9MFY15), its net profit fell 19.43% to RM85.53 million from RM106.16 million a year ago while revenue slipped 1.78% to RM396.32 million from RM403.50 million.
EPS fell to 18.59 sen, from 23.08 sen.
Moving forward, the group, which provides port services at Bintulu Port, Sarawak, noted that its performance in 2015 will continue to be affected by the softness in the liquefied natural gas market, containerised cargo and timber-based products.
However, it said revenue from dry bulk sector and palm oil is expected to contribute positively to the performance of the group.
Boustead Heavy Industries Corp Bhd's (BHIC) net profit shrank 62.1% to RM3.94 million or 1.59 sen per share for the third quarter ended Sept 30, 2015 (3QFY15) from RM10.39 million or RM4.18 per share a year ago.
BHIC attributed the lower earnings to lower contribution from its defence-related maintenance, repair and operations (MRO) activities and higher operating costs largely due to unfavourable (forex) rate translations for the rollover of the group's foreign currency-denominated borrowings for the quarter.
It also noted that earnings were pressured by lower revenue generated in the oil and gas (O&G) Belum Topside project.
Revenue for 3QFY15 fell 21% to RM64.92 million from RM82.14 million 3QFY14.
The weak third-quarter earnings dragged down BHIC's net profit for the nine-month period (9MFY15), which dropped 3.6% to RM21.52 million or 8.66 sen per share from RM22.33 million or 8.99 sen a share a year ago.
In a statement today, BHIC executive deputy chairman and MD Tan Sri Ahmad Ramli Mohd Nor said the group expects to finish the current financial year on a positive note, with heavy engineering continuing to be the strongest segment, boosted by the performance of current MRO projects.
He added that BHIC expects the O&G sector to remain challenging in view of the present competitive environment and capital expenditure cuts as announced by oil majors.
Stem cell banking company StemLife Bhd's net profit soared more than tenfold to RM1.42 million for its third quarter ended Sept 30, 2015 (3QFY15) from RM119,000 last year, mainly due to reversal of over provision of prior year tax and settlement of legal suit.
EPS was 0.57 sen for the quarter under review compared to 0.05 sen a year ago.
In its Bursa Malaysia announcement today, StemLife said its 3QFY15 revenue rose by 13.86% to RM4.75 million from RM4.17 million last year.
For its cumulative nine-month period (9MFY15), the group recorded net profit of RM590,000 or EPS of 0.24 sen compared to a net loss of RM108,000 last year.
The group's cumulative revenue grew by 12.67% to RM13.38 million from RM11.88 million last year.
Moving forward, StemLife's board believes that the remaining quarter will be challenging with no new development in the stem cell industry and government regulations coupled with Malaysia's uncertain economic outlook.
Wisma MPL owner Malaysia Pacific Corp Bhd (MPCorp) has appointed Datuk Muralee Y.S. Menon as its chairman.
MPCorp said Muralee, 53, also sits with the disciplinary committee of the Advocates & Solicitors Disciplinary Board and is an appointed president of the Strata Management Tribunal.
MPCorp also announced the resignation of Ng Kok Wah, 37, as independent and non-executive director due to personal commitments.
In separate filings with Bursa, the company appointed Leong Kah Mun, 46, and Yee Wei Meng, 37, as independent and non-executive directors of the company.
Affin Holdings Bhd has obtained a four-month extension from Bank Negara Malaysia to complete its negotiations with Japan's Daiwa Securities Group Inc over the latter's proposed acquisition of a minority stake in its investment banking arm, Affin Hwang Investment Bank Bhd.
In a filing with Bursa Malaysia today, the banking group said the central bank has granted it up to Feb 29, 2016 to complete the negotiations with Daiwa.
Malacca-based poultry player Huat Lai Resources Bhd, whose share price soared to an all-time high today, said it has no knowledge about the reason for the share price rally.
In reply to Bursa Malaysia's unusual market activity (UMA) query this afternoon, the poultry player said it is not aware of any corporate development relating to the group's business and affairs, including those in the state of negotiation/discussion, or any rumour or report concerning its business that may account for the UMA.
Mineral mining player cum fast food restaurant operator Borneo Oil Bhd's rights issue with warrants has been oversubscribed by 12.53% as at the close of acceptance on Nov 2.
In a filing with Bursa Malaysia today, Borneo Oil said the total acceptance and excess applications for the rights issue with warrants amounted to 2.61 billion shares, or 112.53% of the shares. The total rights share with warrant C available for subscription amounted to 2.32 billion shares as at 5pm on Nov 2.
S P Setia Bhd, the country's biggest listed property developer by sales, will launch a serviced apartment project worth RM500 million at its 25-acre KL Eco City development in the middle of next year.
S P Setia acting deputy president and chief operation officer Datuk Wong Tuck Wai said the serviced apartments will be located next to a hotel within the project.
To date, the group has launched RM3 billion worth of properties in KL Eco City, which include a 35-storey strata office tower with a gross development value of about RM306 million.
Wong told reporters after the strata office tower topping out ceremony today that the office suites are already 100% sold, and it is one of seven office towers and boutique offices planned for the KL Eco City development.
It will officially open its doors and handed over to purchasers by July 2016.
(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.)