KUALA LUMPUR (June 24): Here is a brief look at some corporate announcements and news flow on Friday (June 24), which involved Paragon Globe Bhd, Bumi Armada Bhd, Apollo Food Holdings Bhd, Hong Seng Consolidated Bhd, Astino Bhd, Shangri-La Hotels (Malaysia) Bhd, VS Industry Bhd, Euro Holdings Bhd, Supermax Corp Bhd and Sime Darby Property Bhd.
Paragon Globe Bhd is buying three pieces of freehold agriculture plots in Plentong, Johor, for RM38.08 million to be developed into a "well-conceptualised" commercial area that it believes will enhance its future revenue and earnings. The group said the plots — measuring 10.86 ha — are being bought by its wholly-owned Paragon Platinum Sdn Bhd, which has inked the respective sale and purchase agreements with the vendors — Singaporeans Lim Thiam Seng and Lim Yok Sing and two companies linked to them, Eng Foo (Lim) Enterprise Sdn Bhd and Heng Foo Lim Enterprise Sdn Bhd — for the proposed acquisition.
Bumi Armada Bhd has failed in its bid to appeal against an Australian court's decision that favoured its former client Woodside Energy Julimar Pty Ltd (WEJ), which terminated a charter contract worth RM1.46 billion for its Armada Claire floating production storage and offloading (FPSO) unit in 2016.
Apollo Food Holdings Bhd’s net profit fell 34.85% to RM3.83 million for the fourth quarter ended April 30, 2022 (4QFY22) from RM5.88 million a year ago, despite higher revenue achieved for the quarter under review, dragged by costlier raw materials. The group also recorded lower production capacity due to labour shortage, the confectionery maker's Bursa Malaysia filing showed, while the previous year's corresponding quarter had recorded a reversal of impairment loss on property, plant and equipment. The group proposed a first and final dividend of 15 sen for FY22, payable on Jan 11, 2023 — down 57% from 35 sen per share a year ago.
Hong Seng Consolidated Bhd has disposed of its 35% stake in life science healthcare service provider, Pantasniaga Sdn Bhd for RM24 million cash. The healthcare industry supply chain management specialist said its wholly-owned subsidiary HS Bio Sdn Bhd had entered into a shares sales agreement with Nexterra Sdn Bhd for the stake disposal. Former Director General of Public Service Department (PSD) Tan Sri Mohd Khairul Adib Abd Rahman is the sole director and shareholder of Nexterra.
Flat steel products manufacturer Astino Bhd saw its net profit nearly halved in the third quarter ended April 30, 2022 (3QFY22) as profit margin was hurt by higher cost of materials amid weak market demand, which led to competitive pricing. Net profit for 3QFY22 fell 48% to RM11.76 million from RM22.79 million a year ago, while revenue remained flat at RM156.48 million.
Shangri-La Hotels (Malaysia) Bhd (SHMB) has announced the redesignation of its non-independent and non-executive director Chan Kong Leong as the group's new managing director (MD), with effect from the conclusion of the 51st annual general meeting (AGM) to be held next Thursday (June 30). Chan will succeed Kuok Oon Kwong — the niece of business tycoon Robert Kuok — who has decided to not stand for re-election at the company's upcoming AGM, and accordingly, will retire from the board.
VS Industry Bhd’s net profit for the third quarter ended April 30, 2022 (3QFY22) dropped 30.1% year-on-year to RM51.29 million from RM73.38 million previously, weighed by rising inflation, labour and material costs, as well as supply chain and logistics disruptions. Quarterly revenue fell 13.69% to RM927.59 million from RM1.07 billion previously.
Euro Holdings Bhd has proposed to raise some RM20.05 million via a private placement for its general working capital expenses and repayment of bank borrowings. The furniture company will issue up to 160.38 million shares — representing not more than 20% of its total issued shares of 801.9 million — to third party investors at price to be fixed later.
Supermax Corp Bhd said it is confident that workers at its sites are free from systemic forced labour. The glove maker said that since January this year, the company had put in place measures supported by a comprehensive foreign worker management policy to strengthen its human resources (HR) management and migrant worker policies and practices.
The joint venture (JV) of Sime Darby Property Bhd and LOGOS SE Asia Pte Ltd (LOGOS Property), SDPLOG, announced the first close of its US$250 million industrial development fund, which will go towards the development of sustainable and integrated modern logistics facilities with green building certification at its E-Metro Logistics Park in Bandar Bukit Raja, Klang. With 70% in capital commitments secured at first close for a fund size of up to US$250 million, the shariah-compliant fund will be anchored by Permodalan Nasional Bhd and unit trust funds under its management, and Kumpulan Wang Persaraan (Diperbadankan).