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Tuesday, November 22, 2016

Companies in Focus (Nov 21)





Some of these companies are likely to be in focus on Tuesday (Nov 22) trade given the recent announcement, rumours and news surrounding them.
  • Kuala Lumpur Kepong Bhd to increase stake in Indonesian JV
  • Perisai Petroleum Teknologi Bhd has less than 60 days to submit proposed debt restructuring scheme
  • WCT Holdings Bhd's 3Q net profit plunged 72.1% on forex gain's absence
  • MQ Technology Bhd's right issue under-subscribed by 34%
  • Fajarbaru Builder Group Bhd's associate buys Melbourne land for RM84.15 mil
  • MSM Malaysia Holding Bhd's 3Q net profit shrinks by 63.5%, pays 10 sen div
  • MKH Bhd teams up with PR1MA to undertake RM464 mil mixed project in Kajang
  • Pharmaniaga Bhd's 3Q net profit fell 34.6%, pays 4 sen div
  • Star Media 3Q net profit halved amid poor consumer and business sentiments
  • Mesiniaga gets TNB network equipment deal worth RM12.17m
  • QL' 2Q net profit down 8.4% on lower margins

  • Kuala Lumpur Kepong Bhd (KLK) to increase stake in Indonesian JV
KLK plans to acquire a bigger stake in PT Perindustrian Sawit Synergi, a downstream palm oil producer in Indonesia, by upping its stake in the joint venture company from 63% to 75%, according to its filing with Bursa, which is expected to be completed by last quarter 2017.

It said that its wholly-owned subsidiary KL-Kepong Plantation Holdings Sdn Bhd has inked an amended agreement with Gunaria Sdn Bhd, Mujib Moosa Modak, Modak Moosa Mohamed and Al Hakim Hanafiah to buy a 75% stake — rather than the original 63% — in Perindustrian Sawit Synergi.

Gunaria, which is a wholly-owned subsidiary of IJM Plantations Bhd, will cut its stake from 32% to 20%. Meanwhile, a new shareholder, Al Hakim Hanafiah, is set to buy the remaining 5% stake in Perindustrian Sawit Synergi.
  • Perisai Petroleum Teknologi Bhd has less than 60 days to submit proposed debt restructuring scheme
Perisai's time is running out to come out with a proposed debt restructuring scheme as the company has within 60 days from Nov 10, 2017 to submit it to the Corporate Debt Restructuring Committee (CDRC). 

Recall that Perisai was the first Malaysian oil and gas company to fall victim to the slump in oil prices and declared itself insolvent in Oct 12.

"Upon receipt and review of the proposed scheme, CDRC will call for a meeting with the (company's) lenders to deliberate on the proposed scheme," said Perisai in a filing with Bursa Malaysia today.

"Simultaneous with the company's admission to CDRC, letters to all of the company's lenders have been issued by CDRC requesting the lenders to observe an informal standstill and to withhold litigation proceedings against the company with immediate effect," it added.
  • WCT Holdings Bhd's 3Q net profit plunged 72.1% on forex gain's absence
WCt's net profit fell 72.1% to RM23.97 million or 1.92 sen a share for the third quarter ended Sept 30, 2016 (3QFY2016) from RM85.91 million or 7.43 sen a share a year ago mainly due to high unrealised foreign exchange gain in 3QFY2015.

This was despite its revenue increased by 11.5% to RM414.41 million in 3QFY2016 from RM371.8 million in 3QFY2015 mainly due to higher contribution from the local construction segment.

For the cumulative nine months (9MFY2016), net profit dropped 56.8% to RM64.87 million from RM150.18 million a year ago despite revenue increasing 29.2% to RM1.48 billion in 9MFY2016 from RM1.15 billion in 9MFY2015 for the same reasons.

In a filing with Bursa Malaysia today, the group said despite the challenging economic outlook, it is confident of achieving satisfactory results for the financial year ending Dec 31, 2016.
  • MQ Technology Bhd's right issue under-subscribed by 34%
MQ Tech, which is planning to diversify into the theme park business, saw its renounceable rights issue with free warrants under-subscribed by 34.22%.

The group, which is going to jointly develop a theme park on a 9.16-acre piece of reclaimed leasehold land in Klebang, Malacca, with a private firm, told Bursa Malaysia today it had received valid acceptances and excess applications totalling 275.27 million for its rights issuance at the close of acceptance and payment on Nov 14.

This comprises total valid acceptances of 126.93 million or 30.33% and total valid excess applications of 148.35 million or 35.45%.

"This represents an under subscription of 34.22% over the total 418.47 million rights shares available under the corporate exercise," it said.

Despite the under-subscription, the high precision magnetic coils manufacturer said it managed to hit the minimum subscription level of 180.47 million shares.

As such, the company will allot the rights shares with warrants to all entitled shareholders who have applied for it.

The rights shares’ issue price is 10 sen per share, while the warrants are on the basis of two warrants for every three rights shares subscribed.
  • Fajarbaru Builder Group Bhd's associate buys Melbourne land for RM84.15 mil
Fajarbaru's associate company is buying a piece of freehold land measuring 676 sq meter within the central business district of Melbourne, Australia, for A$25.6 million (RM84.15 million) cash.

The construction outfit said its associate 320 Queen Street Project Pty Ltd is buying the land from the Celtic Club Inc, according to a filing with Bursa. 

The land has been granted a planning permit that allows the construction of a 48-level residential tower, including two basement carpark levels, two recreational levels and service levels on the land from Oct 29, 2017 to Oct 29, 2020.

Celtic Club Inc is an incorporated association in Australia that supports and celebrate pride in Irish heritage and culture, and that of the broader Celtic community.

Fajarbaru said the purchase consideration will be satisfied by way of cash on or before June 20, 2017.
  • MSM Malaysia Holding Bhd's 3Q net profit shrinks by 63.5%, pays 10 sen div
MSM Malaysia Holdings Bhd's net profit for the third financial quarter ended Sept 30, 2016 (3QFY2016) fell by 63.5% due to higher raw material costs and a weaker Ringgit. 

MSM said its 3QFY16 net profit slumped to RM23.31 million or 3.32 sen per share from RM63.87 million or 9.09 sen per share a year earlier despite an increase of 16% in its revenue to RM633.12 million from RM546.49 million.

The rise in top line was due to higher volume of refined sugar sold in the domestic market, its filing with Bursa Malaysia revealed today.

MSM also declared a first interim dividend of 10 sen for the quarter, payable on Dec 30.

In the nine months ended Sept 30, 2016 (9MFY16), its net profit halved to RM106.33 million or 15.13 sen per share against RM214.04 million or 30.45 sen per share a year earlier, as it recognised higher raw material and production costs.

Cumulative revenue, however, rose 11% to RM1.82 billion from RM1.64 billion on higher volume and trading revenue.
  • MKH Bhd teams up with PR1MA to undertake RM464 mil mixed project in Kajang
MKH Bhd is teaming up with PR1MA Corp Malaysia to jointly develop a piece of freehold land measuring 33,280 square metres (8.22 acres) in Kajang into a mixed project with a gross development value (GDV) of RM464 million.

In a filing with Bursa Malaysia today, the property developer-cum-plantation player said its unit Metro KL City Sdn Bhd has inked a joint development agreement with PR1MA Corp, the registered proprietor of the land, to effect their collaboration.

Under the tie-up, MKH said Metro KL City will undertake the development of approximately 1,202 units of stratified residential units, together with a commercial area of approximately 42,000 sq ft.

According to MKH, the project is to be developed over three years and the project's profit and cost sharing between PR1MA and Metro will be on a 30:70 basis.

"The total initial capital and investment outlay by Metro in the joint development of the project land is estimated at RM38 million," it said, which is expected to be incurred for initial start-up costs and preliminary works.

MKH plans to finance the initial outlay via a mixture of internally generated funds and/or bank borrowings. To fully finance its part of the project, it may even undertake other forms of fund raising.
  • Pharmaniaga Bhd's 3Q net profit fell 34.6%, pays 4 sen div
Pharmaniaga Bhd's net profit fell 34.6% to RM13.06 million or 5.04 sen a share in its third quarter ended Sept 30, 2016 (3QFY16) from RM19.97 million or 7.71 sen a share a year ago on lower revenue.

Revenue slipped 1.8% to RM515.22 million in 3QFY16 from RM524.41 million in 3QFY15, due to reduced demand from government hospitals under the concession business.

Nevertheless, the group declared a third interim dividend of four sen per share for the financial year ending Dec 31, 2016, payable on Dec 15.

The lower 3QFY16 earnings dragged down the group's net profit for the nine months period (9MFY16) by 31.7% to RM46.44 million from RM67.98 million in 9MFY15,  primarily due to higher expenses such as finance, selling and distribution costs.

Revenue, however, rose 6.4% to RM1.61 billion in 9MFY16 from RM1.51 billion in 9MFY15, due to improved contributions from the group’s Indonesian operations.
  • Star Media 3Q net profit halved amid poor consumer and business sentiments
Star Media Group Bhd's net profit for the third quarter ended Sep 30, 2016 (3QFY16) fell by more than half or 52% to RM11.31 million or 1.53 sen per share from RM23.64 million or 3.2 sen a share in 3QFY15.

Its revenue in the 3QFY16 also decline by 18.9% to RM206.5 million from RM254.51 million a year ago mainly due to lower revenue from most of its business segments.

In a filing with Bursa Malaysia today, Star Media said revenue of its print and digital business segment for 3QFY16 declined 13.4% mainly due to lower advertising revenue resulting from poor consumer and business sentiments.

Revenue of its radio broadcasting business segment fell 23.4% in the current quarter under review as poor consumer and business sentiments due to weak economic conditions have affected the airtime revenue. This segment recorded a higher pre-tax loss of RM1.27 million in 3QFY16 compared with RM440,000 in 3QFY15.

As for its event, exhibition, interior and thematic business segment, Star Media said revenue decreased to RM54.12 million from RM78.23 million mainly due to fewer projects carried out by Cityneon in 3QFY16. However, this segment narrowed its pre-tax loss to RM1.98 million in 3QFY16 from RM3.51 million in 3QFY15.

Meanwhile, Star Media saw its television channel's revenue fall to RM2.98 million from RM3.66 million in 3QFY15. This segment registered a lower pre-tax loss of RM1.82 million in 3QFY16 from RM2.32 million in 3QFY15 due to better cost management.

For the cumulative nine months ended Sept 30, 2016 (9MFY16), Star Media's revenue dropped 9% to RM671.77 million from RM738.25 million a year ago mainly due to lower print revenue.

Net profit for 9MFY16 fell 15.6% to RM70.47 million or 9.55 sen per share from RM83.48 million or 11.31 sen per share in 9MFY15 due to lower profit recorded by the print segment which were partially offset by the gain on deregistration of a subsidiary company.
  • Mesiniaga gets TNB network equipment deal worth RM12.17m
Mesiniaga Bhd has bagged a network equipment contract from Tenaga Nasional Bhd (TNB) that is worth RM12.17 million.

According to its bourse filing today, it received the letter of award, dated Nov 16, for the provision of "ICS IP/MPLS network equipment" from TNB today.

The information technology products seller expects the 32-month contract to contribute positively to its earnings over the period.
  • QL Resources 2Q net profit down 8.4% on lower margins
QL Resources Bhd's net profit fell 8.4% to RM50.52 million or 4.05 sen a share in the second financial quarter ended Sept 30, 2016 (2QFY17) from RM55.16 million or 4.42 sen a share a year ago, due to lower overall margins of fisheries products and lower contribution from palm oil activities.

Revenue, however, rose 5.7% to RM729.7 million in 2QFY17 from RM690.41 million in 2QFY16, due to higher export contribution of fishmeal, surimi and surimi-based products.

For the cumulative six months ended Sept 30, 2016 (1HFY17), its net profit slipped 3.6% to RM92.65 million from RM96.09 million a year ago, also due to the same reasons. Revenue grew 4% to RM1.4 billion from RM1.35 billion.


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