Share placement effects on Stocks in Malaysia- AT Systematization Bhd, Vsolar Group Bhd, Oversea Enterprise Bhd, Green Ocean Corp Bhd and Fintec Global Bhd.

 IF a company’s shares are considered a form of currency, many small cap companies have been minting money via a series of private placements of new shares over the past 18 months.

A random check on penny stocks shows that the share capital of many of these companies have increased manifold. Among them are AT Systematization Bhd, Vsolar Group Bhd, Oversea Enterprise Bhd, Green Ocean Corp Bhd and Fintec Global Bhd.

The share issuance spree started to gain momentum after Bursa Malaysia relaxed the rules on private placement last April at the peak of the first wave of the Covid-19 pandemic.

The stock exchange raised the private placement general mandate to 20% of a company’s issued share capital, from 10% previously. The threshold is lower than other bourses, including those of Hong Kong and Singapore.

On top of that, companies are permitted to issue up to 30% of their existing share capital in a share placement if the shareholders approve the exercise at an extraordinary general meeting.

The regulators said the relaxation of the rule — until year-end — is an interim measure to help public-listed companies that urgently need to raise fresh capital to sustain their operations during these trying times.

Many small cap companies have opted for the interim measure to raise fresh cash for working capital and future investments or for new business ventures, for instance, production of rubber gloves or distribution of vaccines and Covid-19 test kits.

Fresh capital raised from secondary issuance soared by 76% to RM8 billion in 2020, according to the Securities Commission — evidence of interest in share placements and rights issues.

Coincidentally, most of these companies have a rather similar pattern of fundraising exercises, consisting of a share placement, followed by a cash call and share issuance schemes to reward employees, especially the board of directors.

It is also worth noting that the share prices of such small cap companies usually shoot up soon after these fundraising exercises, despite their dismal earnings performance. Below are some of the companies which have seen a significant increase in their share capital.

 

AT Systematization

Topping the list is ATS, one of the companies that have ventured into rubber glove manufacturing. Its total outstanding shares swelled by 811% to 4.23 billion shares between Jan 1, 2020, and March 15, 2021, according to Bloomberg data.

ATS, in which Fintec Global holds a 9.9% stake, carried out two private placements during the year. The first was proposed in August and the second in November. It issued a total of 1.34 billion shares to raise about RM159.5 million.

The first placement was priced at 6.3 sen to 7.16 sen. Its share price ranged between seven sen and 10 sen in October 2020, when it completed the placement.

The second placement was issued in December at between 15.95 sen and 18 sen — more than 50% higher than the previous one, thanks to the hike in ATS’s share price over the two months.

The first placement was to finance its diversification into the manufacturing and sale of rubber gloves and related machinery, which was in line with its proposed acquisition of industrial glove maker Pearl Glove (Malaysia) Sdn Bhd.

The acquisition was cancelled in November, however, with the group citing the non-fulfilment of certain conditions, without elaborating on them. In January 2021, ATS sued the shareholders of Pearl Glove for RM4.4 million, as it was not satisfied with the result of the exercise.

The second placement was to raise funds for capex for the glove business as well as working capital purposes, as the company was setting up its rubber glove plant in Perak.

Besides share placements, ATS had also undertaken a rights issue of 991.2 million shares to raise RM34.7 million. The proceeds were earmarked for the expansion of its production capacity, repayment of bank borrowings and working capital.

On top of that, ATS has rewarded its employees with share issuance schemes. As at March 10, eligible staff had exercised options amounting to 1.45 billion shares.

 

Vsolar Group

Vsolar Group Bhd, another company linked to Fintec Global, saw its share capital swell 587% to 2.82 billion shares as at March 15, following two private placements, a rights issue and several share issuance schemes to its employees between July 2020 and January this year.

The first placement was announced on Nov 11, and the second was announced about a month later on Dec 16, both for working capital for its solar photovoltaic solutions operations. It raised a total of RM16.5 million.

The issue price for the first placement was fixed at 3.42 sen on Jan 6, 2021, and for the second, at 3.78 sen per share on Nov 11, 2020, when its share price was trading around four sen.

Earlier in the year, the group had raised RM36 million via a rights issue that was completed on July 13. This was to raise capex funds for the development and construction of biomass or biogas plants.

Furthermore, the company has so far granted 901.8 million shares under the share issuance schemes, equivalent to approximately 30% of its share capital.

 

Green Ocean Corp

Like ATS, Green Ocean Corp is also raising fresh capital for its rubber glove venture. Its current core business is the trading of palm oil products.

In 2020, the company started its fundraising activities with a private placement of 28.97 million shares, equivalent to 10% of its share capital in late July. The new shares were priced at 18.5 sen apiece and raised RM5.36 million.

Meanwhile, the hardly traded stock shot up from nine sen on July 22 to 32.2 sen on Aug 10 — the highest level since April 2006. However, it lost ground soon after and closed at 6.5 sen last Friday.

The downtrend did not hinder Green Ocean’s second fundraising exercise in less than two months. In September, it announced a share placement of 95.6 million shares (30% of its share capital) plus a four-for-two rights issue that came with three detachable warrants. On top of that, Green Ocean wanted to grant an employees’ share options scheme (ESOS), involving up to 30% of its total number of issued shares, for eligible directors and employees.

The rights issue of 828.5 million shares was priced at 10 sen and oversubscribed. Subsequently, Green Ocean’s share capital was enlarged to 1.242 billion shares in January 2021, compared with 289.7 million shares a year ago.

Still, the company is expected to issue more shares if its senior officers decide to exercise their ESOS. According to filings with Bursa Malaysia, Green Ocean has granted ESOS to executive director Mak Siew Wei, chairman Datuk Nik Ismail Nik Yusoff, and two independent and non-executive directors Roy Winston George and Khoo Chee Siang.

Mak, who bought into Green Ocean last July with an equity interest of 17.07%, has ceased to be a substantial shareholder as a result of the cash call.

Since Jan 4, the company has granted 963.7 million to the four senior executives in the price range of 5.75 sen to 7.5 sen, which is less than the rights issue price.

 

Fintec Global

Fintec Global Bhd’s issued share capital more than quadrupled to 3.37 billion shares as at March 15, 2021, from 745.56 million as at January 2020.

The group, which is involved in various business sectors by virtue of its equity stake in ATS, Vsolar, Focus Dynamics Group Bhd, DGB Asia Bhd and MLabs Systems Bhd, completed two private placements in 2020.

The first exercise was proposed on April 23, and saw the placement of 82.11 million shares, raising a total of RM2.96 million for working capital purposes.

A month later, it announced another private placement of 282.14 million shares, fixed at an issue price of 5.35 sen for the first tranche of 100 million shares and 7.1 sen for the second tranche comprising 182.14 million shares.

A total of RM18.3 million was raised, earmarked for “investment in healthcare equipment manufacturing and/or trading business” as well as working capital purposes.

On Sept 4, 2020, the group proposed a diversification of its business and subsidiaries to include the manufacturing and sale of rubber gloves, as it hoped to capitalise on the high demand amid the Covid-19 pandemic.

To fund its venture into the glove business, Fintec proposed to undertake a renounceable rights issue of up to two billion new shares, which was subsequently fixed at eight sen per rights share.

The group rewarded its employees with a share issuance scheme, granting roughly 697 million shares to eligible employees. The amount is equivalent to 20% of its current issued share capital.

 

Key Alliance Group

Key Alliance Group Bhd also followed the same path — a share placement, rights issue and share issuance scheme for eligible employees — last year.

Its issued share capital increased 352% to 2.35 billion shares, following two share placements and a rights issue last year.

It undertook two private placements, which saw some 262.1 million new shares being issued.

The first was completed in April 2020, with a total of 57.8 million shares issued at 1.35 sen apiece, raising RM780,705 in proceeds earmarked for the repayment of bank borrowings and working capital purposes.

Three months later, it completed a second private placement for the year, issuing a total of 204.2 million shares at six sen each.

It raised a total of RM12.25 million from the exercise, which was primarily for the expansion of its cloud services, data centre and IT business. A portion of the proceeds went to the building of an internet exchange point at its existing data centre in Menara Lien Hoe.

Last August, the company continued its share issue spree. This time round, it made a cash call to issue up to 982.21 million new shares, raising a total of RM49.1 million to fund its diversification into the marketing, distribution and trading of medical equipment, devices and related products.

Still, the two share placements plus a rights issue failed to meet its capitalisation requirements.

In January this year, Key Alliance proposed another private placement of up to 609.45 million shares, equivalent to 30% of its enlarged share capital, to raise funds for the development of an e-commerce platform for medical equipment, devices and related products.

Similarly, eligible employees were rewarded with a share issuance scheme, receiving a total of 889.5 million shares between February 2020 and January 2021.

 

 

PNB's Amanah Saham Nasional announces total income distribution of RM1.55 bil for five funds

Amanah Saham Nasional Bhd (ASNB), the wholly-owned unit trust management company of Permodalan Nasional Bhd (PNB), has announced a total income distribution payout of RM1.55 billion for the financial year ending March 31, 2021, for five of its funds. 

In a statement today, PNB said the five funds include two fixed price funds, namely Amanah Saham Bumiputera 2 (ASB 2) and Amanah Saham Malaysia (ASM), as well as three variable price funds which are ASN Equity 3, ASN Imbang 2 and ASN Sara 1.

For ASB 2, PNB has declared a dividend of 4.25%, translating into a total income distribution payout of RM488.2 million, benefitting 459,416 unit holders who currently hold 11.5 billion units.

For ASM, the company has declared a total income distribution payout of RM851.2 million or 4.0% dividend, benefitting 559,222 unit holders who currently hold 21.3 billion units. 

"As of March 25, 2021, ASB 2 recorded a net realised income of RM499 million, while ASM recorded a net realised income of RM727.6 million. The performance of ASB 2 and ASM is benchmarked against the 1.95% return of Maybank's 12-month fixed deposit," it said. 

Meanwhile, PNB said ASN Equity 3, ASN Imbang 2 and ASN Sara 1 registered double-digit total returns of 18.7%, 17% and 10.8% respectively for the financial year ending March 31, 2021, driven largely by the recovery of the equity markets from the lows in the year 2020. 

"These returns are benchmarked against the FTSE Bursa Malaysia Top 100 Index (FBM 100) and Maybank's 12-month fixed deposit, at a ratio customised to each fund. 

"During the same period, the FBM KLCI strengthened from 1,351 points to 1,598 points by 18.27%, following improved sentiment with the rollout of the vaccination programme globally and the anticipated recovery of the global economy," it said. 

With these returns, the company said ASNB declared a total income distribution payout of RM76.4 million for ASN Equity 3, which is equivalent to 3.53 sen per unit to 86,306 unit holders with 2.2 billion units. 

Meanwhile, ASN Imbang 2 declared a total income distribution payout of RM45.4 million, which is equivalent to 3.11 sen per unit to 85,147 unit holders with 1.5 billion units, and ASN Sara 1 declared a total income distribution payout of RM91.8 million, which is equivalent to 3.52 sen per unit to 85,776 unit holders with 2.6 billion units. 

"These represent a dividend yield of 3.15%-3.95%t for each fund, based on its respective net asset value (NAV) as of March 25, 2021. 

"The income distributions declared by these funds are derived from the funds’ realised gains, dividends and other income. Income from international investment grew significantly with contributions of 40% to 52% to each respective fund for the financial year to date, reflecting the positive impact of the diversification initiatives undertaken by these funds," it added.

Source: The Edge Markets

SCGM allocates RM20m for food packaging capacity expansion

Food packaging manufacturer SCGM Bhd plans to spend RM20 million to expand its food packaging capacity, as its food and beverage (F&B) packaging sales continue to benefit from the new norm of increased food delivery and takeaway amidst the Covid-19 environment.

The capital expenditure that it allocated for the next financial year ending April 30, 2022 would be used to buy extrusion machines and forming machines.

In a press statement, its managing director Datuk Seri Lee Hock Chai said this capacity expansion is timely to capture rising demand from its customers, and allows them additional capacity to serve even more customers in the domestic and international markets.

“We are seeing encouraging uptake for our F&B packaging such as bento boxes, bakery trays and other products in the last few quarters, as we meet increasing demand from food and beverage (F&B) businesses, in line with higher takeaways amidst Covid-19,” Lee noted.

As the largest thermoform F&B packaging provider in Malaysia, Lee believes SCGM has a competitive edge in sourcing for new clients, particularly in the domestic arena, alongside overseas markets such  as New Zealand, Australia, Singapore, Philippines and Indonesia.

“Hence, by leveraging on our expanded operating capacity, as well as our extensive distribution network and in-house design capabilities to manufacture innovative products, we are set to continue expanding our clientele, going forward,” he added.

In conjunction with the expansion announcement, SCGM reported that its net profit nearly doubled to RM8.1 million in the third quarter ended Jan 31, 2021 (3QFY21) compared to RM4.18 million a year ago, on higher revenue.

The better bottom-line was further supported by lower operating costs as the group consolidated its Telok Panglima Garang factory to its larger Kulai plant since March 2020.

It also attributed the better earnings to lower finance expenses of RM700,000 in 3QFY21, versus RM1.2 million in 3QFY20, on low interest rates and reduced bank borrowings.

Revenue for the quarter jumped 21.09% to RM62.53 million from RM51.64 million a year before, underpinned by its strong F&B packaging segment.

The group declared a third interim dividend of 2.2 sen per share for the financial year ending April 30, 2021 (FY21), with an ex-date on April 12. Meanwhile, the payment date for the dividend falls on April 28, 2021.

Including the first and second interim dividend of 1.7 sen and 1.5 sen paid by the group previously, this brings the group’s total dividend for 9MFY21 to 5.4 sen per share, compared with 1.75 sen per share last year.

SCGM’s total dividend payout for 9MFY21 translates to RM10.4 million or 40.0% of net profit in 9M21.

On a quarter-on-quarter basis, the group’s revenue increased by 2.48% from RM61.01 million in 2QFY21, despite posting a lower net profit compared with RM9.61 million.  

For the cumulative nine-month period (9MFY21), its net profit jumped 150% to RM25.98 million from RM10.41 million a year ago, on the back of favourable sales mix, lower raw material costs and reduced operating and interest expenses incurred during the period.

Cumulative revenue for 9MFY21 grew by 12.4% to RM180.76 million from RM160.82 million, as a result of higher deliveries of F&B packaging and contributions from the new personal protective equipment segment comprising face masks and face shields, which was established since February 2020.  

Acknowledging the current uptrend in resin prices, Lee said even as they continue to trend upwards, the group’s position as the largest thermoform F&B packaging provider and price leader allows it to benefit from economies of scale and adjust prices accordingly.

Share price of SCGM closed up two sen or 1.09% to RM1.86 today, giving it a market capitalisation of RM360 million. There were 563,900 shares traded.

The stock’s price has been on a declining trend from August last year, having halved compared to its recent peak of RM3.74 on Aug 3, 2020.

 

Source: The Edge Markets

Tan Chong Motor to settle RM180m customs bill out of court

Tan Chong Motor Holdings Bhd said it will be settling its RM180 million Royal Malaysian Customs Department (RMCD) bill out of court, by way of reduced bills of demand and compound amounting to RM109 million.

In a filing with the exchange, the car assembler said the settlement is subject to the finalisation of the terms of the consent order.

"The company is pleased to announce that this matter has been resolved amicably and expeditiously as this will enable Tan Chong Motor Assemblies Sdn Bhd (TCMA) to focus on its core business instead of being entangled in a protracted litigation," said the group.

In May last year, RMCD slapped TCMA with the RM180 million bill for excise duties from Nov 1, 2016 to Oct 31, 2019.

TCMA is the group's manufacturing subsidiary with facilities in Serendah, Selangor as well as Da Nang, Vietnam and Yangon, Myanmar.

The subsidiary has built passenger and commercial vehicles for Nissan, Renault, Subaru, Mitsubishi, UD Trucks, Foto and Bison trucks.

Tan Chong Motor's share price closed unchanged at RM1.17, giving a market capitalisation of RM786.24 million.

 Source: The Edge Markets

AirAsia books wider-than-expected 4Q net loss of RM2.4b

 AirAsia Group Bhd posted a bigger-than-expected net loss of RM2.44 billion for the fourth quarter ended Dec 31, 2020 (4QFY20), after the low-cost carrier booked a series of impairments.

Losses per share stood at 73.2 sen, versus 11.5 sen in the fourth quarter ended Dec 31, 2019 (4QFY19).

The impairments incurred include for right-of-use (ROU), receivables, as well as fuel swap losses. On the other hand, the group also booked a gain on disposal of its stake in AirAsia India of RM229.4 million, AirAsia's filing showed.

Excluding the unusual items, AirAsia still booked a loss of  RM1.02 billion for the quarter, as opposed to RM851.78 million in 3QFY20, as group revenue fell 39.62% to RM267.44 million, from RM442.91 million, as Malaysia imposed targeted Movement Control Orders in October and November.

Load factor rose slightly on-quarter to 67%, from 66% in 3QFY20.

“It is notable, however, that the Philippines doubled its passengers carried whilst Indonesia multiplied its number of passengers carried by 11 times quarter-on-quarter. This is testament that for areas where travel restrictions are lifted, there is a solid domestic rebound for air travel,” the group said.

The fourth quarter results brought AirAsia’s net loss for the full-year ended Dec 31, 2020 (FY20) to RM5.1 billion or RM1.52 per share – 66% wider than consensus estimate of 92 sen per share, Bloomberg data showed.

Revenue for the year totalled RM3.14 billion, down 73.56% from RM11.86 billion in FY19. In the period, the group saw a 74% decline in number of passengers carried to 13.31 million, from 51.56 million. Load factor was “relatively healthy” at 74%, said the airline, down from 85% the year before.

A major portion of the loss for the period relates to depreciation of ROU and interest on lease liabilities amounting to RM654.2 million for 4QFY20 and RM2.5 billion for FY20, the airline said.

“While the group had successfully negotiated for deferrals with lessors, pursuant to the practical expedient available under Amendments to MFRS16: Covid 19 Related Rent Concessions, the income statement charge for depreciation and interest were not adjusted,” it added.

The group had RM2.12 billion negative net cash flow for the year, as opposed to RM780.3 million in negative net cash flow for FY19.

“The group has reviewed every aspect of our operations and made great strides in establishing a leaner and more optimised airline operation, as we prepare for an expected surge in demand, post-pandemic,” AirAsia said of its prospects.

“Even if borders remain closed, the group is well-prepared to rely solely on domestic operations alone this year,” it added.

The carrier has also set a timeline for its non-airline and digital business to contribute to 50% of the group topline in five years’ time.

Apart from the final stages of discussion for the Danajamin Prihatin Guarantee Scheme for its potential loans with banks, AirAsia said it also has ongoing deliberations with several parties for collaborations “that may result in additional third party investments in specific segments of the group's business”.

The airline’s co-founder and group CEO Tan Sri Tony Fernandes told The Edge in an interview last week that the group was "targeting RM800 million to RM1 billion" in rights issue (read more on the interview in this week's edition of The Edge Malaysia).

In a conference call with analysts this evening, Fernandes affirmed the upcoming rights issue but did not go into the size and specifics, according to analysts who called in.

One analyst opined the cash call could end up being “more than” the company's estimate, following the record losses and depending on how the recovery path pans out. Past analyst estimates ranged from RM1 billion to RM3 billion, prior to AirAsia’s update on its talks with the financial institutions.

With another challenging quarter expected due to the Movement Control Order 2.0 in 1Q21, another analyst pointed to better days in the 2H, “should travel be allowed again”.

“However, they still need to resolve a lot of issues — mainly their negative total equity... and they still need to look at ways to raise funds," he added.

Shares of AirAsia slid one sen or 0.88% to close at RM1.13 today, valuing the low-cost carrier at RM4.31 billion.      

 

Source: The Edge Markets

IPO Volcano terlebih langgan 176.6 kali

Volcano Bhd, syarikat yang bakal disenaraikan di Pasaran ACE Bursa Malaysia pada 6 April 2021, menyaksikan tawaran awam permulaannya (IPO) bagi bahagian awam terlebih langganan sebanyak 176.6 kali.

Syarikat pengeluar komponen plastik suntikan itu dalam satu kenyataan hari ini berkata, bagi IPO yang akan datang, sebanyak 23,838 permohonan untuk kira-kira 1.46 bilion saham baharu dengan nilai RM512.82 juta diterima daripada rakyat Malaysia.

"Ia mewakili kadar terlebih langganan keseluruhan sebanyak 176.6 kali bagi 8.25 juta saham baru yang disediakan untuk permohonan oleh orang awam Malaysia," katanya.

Volcano sedang mengumpul RM8.75 juta daripada langkah IPO. 

Daripada hasil kutipan itu, kumpulan akan membelanjakan RM5.55 juta untuk pembelian jentera dan peralatan, manakala RM3.2 juta akan digunakan bagi belanja penyenaraian.

Sumber: Berita Harian

Oriental Holdings 4Q profit surges on higher plantation earnings

Oriental Holdings Bhd’ said its net profit surged to RM103.12 million for the fourth quarter ended Dec 31, 2020 (4QFY20) from RM14.99 million in the preceding quarter, thanks to better performance by its plantation segment.

Quarterly revenue rose 4.4% to RM990.2 million from RM948.22 million in 3QFY20 on the back of  higher commodity prices and sales volume.

In a bourse filing, the group said the revenue for its plantation segment increased 86% quarter-on-quarter to RM178 million from RM95.7 million, on higher crude palm oil (CPO) and palm kernel (PK) sales volume which increased by 85.2% and 56% respectively. CPO and PK average prices were also higher by 21.6% and 28.7% respectively.

The segment recorded an operating profit of RM97.1 million (versus an operating loss of RM73.8 million in 3QFY20), which was partly contributed by an RM56.2 million forex gain (against an RM92.7 million forex loss previously). The forex gain was due to the strengthening of the Indonesian rupiah against yen-denominated borrowings, the group said.

On a year-on-year basis, Oriental Holdings’ 4QFY20 net profit was up by 26.32% from RM81.64 million in 4QFY19 while revenue was down 10.02% from RM1.1 billion.

No dividend was proposed in the latest quarter. The group's total dividend payout in FY20 is 24 sen, down from the 40 sen seen in FY19.

For the full financial year, the group saw its net profit shrink 67.44% to RM114.81 million, from RM352.6 million in the previous year. Full-year revenue retreated 34.8% to RM3.36 billion from RM5.16 billion.

The group said lower car sales from its retail operations contributed to lower FY20 revenue with the lower net profit attributed to lower full-year earnings from all business segments, including the plantation segment.

On its prospects, Oriental Holdings said its automotive segment will continue to contribute to its performance under very competitive market conditions amid aggressive promotional campaigns by car companies.

“With the reinstatement of MCO 2.0 in mid-January 2021, 1Q sales from retail operations in Malaysia is not expected to be encouraging despite the vehicle sales tax exemption period being extended to June 2021. The effect will be minimal and dampened further by a shortage of semiconductor chips in the supply chain which will inevitably cause delays in production in the near future,” it said.

Shares in Oriental Holdings closed unchanged at RM5.18, valuing the group at RM3.21 billion. The counter saw 69,600 shares done.

 Source: The Edge Markets

Kerjaya Prospek's Tee brothers make takeover offer at 60 sen per share for E&O

Amazing Parade Sdn Bhd is making a mandatory takeover offer to Eastern & Oriental Bhd (E&O) at 60 sen per share after it bought a 10.89% stake from Sime Darby Bhd.

The offer price is 1.5 sen higher compared with today's closing price of 58.5 sen. The property stock has climbed 62.5% from 36 sen in early November last year.

In a filing with Bursa Malaysia, E&O said it received notice of the MGO from Amazing Parade — the private vehicle of the Tee brothers, who control the construction firm Kerjaya Prospek Group Bhd.

Source: The Edge Markets

Hai-O Enterprise Bhd's 3rd Quarter Results ended 31 Jan 2021

 Hai-O Enterprise Bhd's net profit grew 35.32% year-on-year to RM10.28 million in the third quarter ended Jan 31, 2021 (3QFY21) from RM7.6 million in the previous year, thanks to better contribution from its multilevel marketing (MLM) and wholesale divisions.

The stronger earnings, which came despite revenue staying relatively flat at RM67.23 million, versus RM67.02 million a year before, pushed earnings per share to 3.55 sen from 2.62 sen, its bourse filing today showed.

The group, however, declared no dividend for the quarter. In contrast, it paid a dividend of three sen per share for 3QFY20.

During the quarter, Hai-O said its MLM division continues to actively strategise product launches and devise various sales campaigns with different themes to excite distributors and boost overall sales.

"The overwhelming response for one newly launched lady wear series had boosted sales during the period under review. The division was also able to leverage on e-commerce and social media platforms to widen its reach and recruit higher number of new members," it said.

Hence, the division recorded higher revenue and pre-tax profit of RM133 million and RM27.4 million for the period under review, up 9.5% and 23% from RM121.5 million and RM22.3 million, respectively, in the same period last year.

Meanwhile, the group's wholesale division recorded higher pre-tax profit despite lower revenue, on the back of ongoing cost optimisation initiatives, higher sales for Chinese medicated tonic and premium cooking wine — which carry higher margins — as well as a one-off gain from the disposal of vintage tea amounting to RM900,000.

For the cumulative first nine months of FY21, Hai-O's net profit climbed 36.35% to RM30.90 million from RM22.66 million in the corresponding nine months in the previous year, while revenue grew 1.56% to RM204.61 million from RM201.47 million.

Going forward, Hai-O said its MLM division is embarking on a rebranding exercise by repackaging and reformulating several star products, and will continue to intensify its efforts to recruit new members and retain productive members.

Under its wholesale division, the group will further enhance advertising and promotions through digital marketing of key products, including Chinese medicated tonic.

As for its retail division, the group said it will strengthen efforts to digitalise its business operations to remain resilient.

In view of the above, Hai-O's board of directors expects the group to remain profitable amidst the challenging business environment in the next quarter.

Hai-O shares closed one sen or 0.47% lower at RM2.14 today, valuing the group at RM643 million. Over the past 12 months, the stock has jumped 63% from when it was trading at RM1.31.

Source: The Edge Markets

IOI Corp associate Bumitama to look into replanting areas with below-average oil palm yields

  IOI Corp Bhd’s 32.101%-owned associate Bumitama Agri Ltd said the oil palm plantation company will continue to invest in its infrastructure, and instead of expanding into new planting, the group will start to look into replanting areas with below-average yields and higher-than-expected costs to drive fresh fruit bunch production growth to ensure efficient use of the company’s assets. 

Bumitama executive chairman and chief executive officer Lim Gunawan Hariyanto said in Bumitama’s latest annual report, which was filed with the Singapore Exchange today, that although financially stronger, Bumitama will not be complacent and will remain vigilant and monitor risks in the ever-changing business environment as the global economy contends with the impact of the Covid-19 pandemic.

"Thus, we will continue to enhance our capacity to create value by improving our performance across the value chain, from using the best seeds for replanting to good plantation management practices, increasing yield and extraction rates. 

 

"We have expanded the capacity of our mills by an additional 60 MT per hour, bringing total capacity in the end of FY2020 (ended Dec 31) to 6.03 million MT.

"When the Covid-19 pandemic broke out in the beginning of FY2020, we were concerned about the safety and well-being of our employees and their families, and its impact on our operations,” Lim said.

Looking ahead, Lim said Bumitama will also continue to invest in research and development to reduce toxicity through the responsible use of pesticides and to raise the standards of good agricultural practices. 

"Our new tissue culture laboratory, which will soon be commissioned, will be able to supply cultured seeds with better yield potential for our replanting programmes,” he claimed.

Citing a report by the Council of Palm Oil Producing Countries (CPOPC), Lim said the CPOPC report indicates that palm oil prices are projected to remain robust in the first half of 2021, supported by strong demand for edible oils and tighter supply of alternative oils such as soybean and sunflower oils. 

"Nonetheless, the price outlook for 2021 will also depend on other factors such as weather conditions, although the La Nina effect is expected to remain neutral. On the whole, we remain positive on the longer-term fundamental strength of the palm oil industry,” he said.

On Bursa Malaysia today, IOI Corp shares were traded unchanged at RM4.21 at 11:44am for a market value of about RM26.4 billion.

IOI Corp has 6.27 billion issued shares, according to the company’s latest quarterly financial report.

Source: The Edge Markets

Peralihan pengguna ke platform lain jejaskan Astro

 Peralihan pengguna kepada platform yang lebih murah seperti NJOI memberi kesan kepada pendapatan Astro Malaysia Holdings Bhd (Astro) pada suku keempat tahun kewangan 2021.

MIDF Research dalam nota penyelidikannya berkata, pandemik COVID-19 dan pelaksanaan semula Perintah Kawalan Pergerakan (PKP) pada awal tahun ini turut memberi impak kepada Astro.

Firma penyelidikan itu berkata, ketika PKP, pengguna lebih memilih untuk mengekalkan aliran tunai atau menggunakan platform alternatif yang lebih murah sebagai langkah berhati-hati dalam menguruskan kewangan.

Katanya, ia menyaksikan pendapatan prabayar NJOI meningkat sebanyak 36 peratus suku ke suku disebabkan oleh pengembangan pek kandungan dan pengedaran, dengan menyasarkan segmen pelanggan yang mementingkan anggaran.

Sebaliknya, MIDF Research berkata, pendapatan purata setiap pengguna (ARPU) bagi TV berbayar pula merosot 3.2 peratus kepada RM96.90 pada tahun kewangan 2021 berbanding RM100 pada tempoh sama tahun sebelumnya.

"Pendapatan suku keempat tahun kewangan 2021 Astro turun 9.5 peratus tahun ke tahun kepada RM1.11 bilion. 

"Pendapatan daripada segmen langganan dan pengiklananannya juga mencatatkan penurunan masing-masing pada RM797.5 juta (-10 peratus tahun ke tahun) dan RM83.9 juta (-12 peratus tahun ke tahun).

"Namun, seperti penyedia perkhidmatan TV yang lain, Astro berjaya mengimbangi jurang ini melalui pendapatan yang lebih tinggi dalam segmen membeli-belah di rumah," katanya.

MIDF Research berkata, segmen membeli belah di rumah Astro, Go Shop, dijangka akan terus memberi sokongan kepada prestasi kewangan kumpulan.

Katanya, ini berdasarkan kepada pertumbuhan sebanyak 10 peratus tahun ke tahun kepada RM110.5 juta pada suku keempat tahun kewangan 2021.

"Segmen membeli belah di rumah diunjurkan terus mencatatkan lonjakan positif pada suku yang akan datang disebabkan ketibaan Ramadan dan Hari Raya," katanya.

Sumber: Berita Harian

 

Insurers extend payment deferment to June 30

 All life insurance companies and family takaful operators have extended the three-month deferment premium/ contribution payment initiative for policy/certificate holders financially affected by the pandemic up to June 30.

The Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) said in a statement on Friday during this period they will continue to provide insurance and takaful protection to the affected policy/certificate holders.

The protection includes those who are unable to earn an income to have a grace period of three months (or 90 days) to pay premium/ contribution due.

The extension is in response to the need of affected policy/certificate holders who may continue to face financial difficulties during this recovery phase of the Covid-19 pandemic.

However, policy/certificate holders are advised to check with their life insurers or takaful operators on their eligibility for this initiative.

LIAM President Loh Guat Lan said the impact of this Covid-19 is huge and prolonged. As such, the industry needs to continue to safeguard the customers’ interest.

“The intended outcome is to enable policy/certificate holders to maintain their insurance/takafulprotection coverage during this challenging period, ” she said.

“If the application by the policy/certificate holder is approved, the policy/certificate will remain in force during the deferment period.

“Once the deferment period ends, contractual provisions regarding premium/contribution payment will resume as usual. This deferral is a one-time exercise only although insurers or takaful operators can allow more liberal deferral at their discretion, ” Loh said.

The premium/contribution deferment option is applicable for annual, half-yearly, quarterly and monthly premium/ contribution modes of payment.

This flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or any other means that maintain the policy/ certificate intact during the deferment period.

Additionally, life insurers and family takaful operators will also assist policyholders and takaful participants affected by Covid-19 to reinstate or preserve their life insurance and family takaful protection.

Source: The Star

Astro 4Q results and dividends

Astro Malaysia Holdings Bhd's net profit rose 20.81% to RM167.83 million in the fourth quarter ended Jan 31, 2021 (4QFY21), from RM138.92 million a year earlier, on lower net financing costs and tax expenses.

Earnings per share increased to 3.22 sen from 2.66 sen, the group's filing with Bursa Malaysia showed.

Quarterly revenue fell 9.54% to RM1.11 billion, from RM1.23 billion in 4QFY20, underpinned by a decrease in subscription and advertising revenue in the period.

On a quarter-on-quarter basis, Astro's net profit rose 2% from RM164.53 million in 3QFY21, while revenue inched up 0.15% from RM1.1 billion.

 

The group declared a fourth interim dividend of 1.5 sen per share, to be paid on April 23, as well as a final dividend of 2.5 sen per share.

The group's full-year net profit declined 17.62% to RM539.85 million, from RM655.3 million in FY20.

Hit by the Covid-19 pandemic, revenue for FY21 fell 11.24% to RM4.36 billion, from RM4.91 billion in FY20.

Commenting on the financial results, group chief executive officer Henry Tan said Astro will continue to cost optimise, reprioritise capital expenditure and actively manage its capital to further strengthen its balance sheet.

"With the latest 'cloud recording' and 'play from start' features, our connected 4K-UHD Ultra Box (installations) recorded a fivefold increase to 230,000 and on-demand videos streamed tripled to 222 million in FY21.

"We also recently introduced Ulti Box, a high-definition (HD) variant set-top-box to bring connected features to more households," he said.

Tan said Astro is upgrading all standard definition channels to HD.

"Astro GO, enhanced with 'pre-access' and 'download-to-go' features, saw an increase in its monthly active users by 13% year-on-year to 1.3 million, while its average weekly viewing time rose 8% to 187 minutes," he added.

Moving forward, Astro said any reimposition or tightening of Movement Control Orders to curb Covid-19 outbreaks may impact advertising and commercial revenues.

"Our intent is to offer a great entertainment experience across all screens for everyone, whether individuals, homes or enterprises," said Tan.

Shares of Astro Malaysia closed unchanged at 92 sen, giving the group a market capitalisation of RM4.8 billion.

Source: The Edge Markets

MyNews Holdings sinks into the red in 1Q with RM8.94m net loss

MyNews Holdings Bhd sank into the red in the first quarter ended Jan 31, 2021 with a net loss of RM8.94 million, from a net profit of RM4.35 million a year ago, as its business was impacted by movement restrictions implemented by the government to curb the spread of Covid-19.

Revenue for the group fell 29.82% to RM98.65 million from RM140.58 million a year earlier, its filing to Bursa Malaysia showed. The group did not declare any dividend for the latest quarter.

The group said its 1QFY21 was dragged through the longest period of the worst movement controls so far. "Moreover, about 80% of our outlets [are] located in the Klang Valley, which had been going through the most restrictive movement controls in the country," it said.

Compared to the immediate preceding 4QFY20, the group's net loss expanded from RM5.15 million, while revenue retreated from RM115.83 million, as the government replaced the Recovery Movement Control Order (RMCO) with the more restrictive Conditional MCO in certain states — which was extended and expanded to more places. Subsequently, the MCO was reimplemented on the whole of Peninsular Malaysia towards end-January.

Going forward, in anticipation of the relaxation of movement restrictions and following the start of the Covid-19 vaccination programme in the country, the group is hoping for a gradual recovery of its business.

 

“Our business will continue to grow in line with the growth of all the brands in our stable, namely myNEWS, myNEWS SUPERVALUE, WHSmith and CU.

"While all the brands expand simultaneously but at different rates, we expect to realise a faster rate of growth overall, barring any adverse unforeseen circumstances,” it said.

Its first CU outlet will be launched on April 1 in Centre Point, Bandar Utama. Thereafter, the company targets to open between 30 to 50 CU outlets this year.

“We are optimistic that this brand and concept from South Korea will be successful and will likely increase the business of the company at a faster rate,” it said.

Similarly, its myNews SUPERVALUE stores that cater for new norm shoppers will add more business to the company, as the group targets to open 20 more such stores this year.

“Meanwhile, our most popular myNEWS brand stores will continue to grow at suitable locations,” it said.

MyNews shares closed three sen or 3.47% higher at 89.5 sen today, valuing the group at RM610.53 million.

Source: The Edge Markets

Hiap Teck 2Q profit jumps to RM30m q-o-q on higher sales volume, improved margins

 Steel products manufacturer Hiap Teck Venture Bhd’s net profit for the second quarter ended Jan 31, 2021 (2QFY21) jumped to RM30.05 million from RM6.97 million in the immediate preceding quarter due to higher sales volume and improved margins in tandem with rising steel prices.

Revenue climbed 53.8% to RM356.02 million from RM231.44 million in 1QFY21 due to higher sales volume and increased selling prices for both the trading and manufacturing divisions, the group said in a filing with Bursa Malaysia today.

On a yearly basis, Hiap Teck returned to the black from a net loss of RM7.66 million, while revenue grew 32.7% from RM286.27 million a year earlier.

The group recorded a profit before tax of RM37.42 million compared to loss before tax of RM7.88 million in the previous year.

“This significant variation was also contributed by the turnaround in the JV [joint venture] entity which registered a profit of RM2.88 million for the quarter under review compared to a loss of RM1.89 million in the preceding year's corresponding quarter,” said the group.

For the six-month period ended Jan 31, 2021, Hiap Teck posted a net profit of RM37.02 million versus a net loss of RM10.92 million. Its six-month revenue rose 5.27% to RM587.47 million from RM558.07 million a year ago.

Hiap Teck said rising global steel prices attributed to worldwide supply disruptions, industrial sector rebound and higher raw material prices, have benefited the steel players as margins expand in tandem with the rising prices.

“Together with the projected resumption of growth for the Malaysian economy and construction sector from the second quarter onwards, and the turnaround of our JV entity, the board is optimistic of the prospects and performance of the group for the remaining quarters of FY2021,” Hiap Teck commented on its prospects.

At market close, Hiap Teck was up five sen or 1.08% at 47 sen, valuing the group at RM658.74 million. The counter saw some 19.33 million shares changing hands.

 

 

Source: The Edge Markets 

Spritzer buys agriculture land in Taiping for RM 76.11 million to set up new mineral water plant

Spritzer Bhd is acquiring an agriculture land near its existing mineral water plant in Air Kuning, Taiping for RM76.11 million, to set up a new plant.

The group said the 1,228-acre land, planted with oil palm trees, belongs to Trong Oil Palm Estates Sdn Bhd.

“The property is strategically located at Bukit Gantang, Perak, which can be easily accessed from the North South Expressway via the Changkat Jering Interchange and the West Coast Expressway via the proposed Trong Interchange.

“Its proximity to these two expressways makes it an ideal site for a mineral water plant, where its products can be efficiently transported to all the places along the expressways,” said Spritzer in a bourse filing.

Upon set up of the mineral water plant, the acquisition is expected to contribute positively to the group’s future earnings, it added.

The cash acquisition, which is expected to be completed by the fourth quarter of 2021, will be funded by internally-generated funds, Spritzer said.

Spritzer’s share price closed down three sen or 1.51% at RM1.96 today, valuing the group at RM412 million. The counter saw 98,800 shares traded.

 Source: The Edge Markets

Daily News Summary by The Edge - Velesto, Boustead Plantations, UEM Sunrise, RHB, S P Setia, Yong Tai, Berjaya Corp, Three-A Resources, Gamuda, EcoWorld, Bintai Kinden, Euro Holdings

 Based on corporate announcements and news flow today, companies in focus tomorrow (March 25) may include Velesto Energy Bhd, Boustead Plantations Bhd, UEM Sunrise Bhd, RHB Bank Bhd, S P Setia Bhd, Yong Tai Bhd, Berjaya Corp Bhd, Three-A Resources Bhd, Gamuda Bhd, Eco World Development Group Bhd, Bintai Kinden Corp Bhd and Euro Holdings Bhd.

Oil rig operator Velesto Energy Bhd sank into the red in the fourth quarter of financial year 2020 (4QFY20) ended Dec 31, 2020, reporting a net loss of RM493.29 million from a net profit of RM10.2 million a year earlier. Quarterly revenue shrank 44.38% to RM99.06 million from RM178.1 million, mainly due to lower activities in both drilling and oilfield services segments. For the full FY20, Velesto reported a net loss of RM491.73 million from a net profit of RM33.22 million. Annual revenue fell 18.5% to RM546.94 million from RM670.76 million a year ago.

Boustead Plantations Bhd reported a net profit of RM27.46 million for 4QFY20 ended Dec 31, 2020, compared with a net loss of RM172.73 million a year earlier, on higher palm product prices. The higher palm product prices also lifted quarterly revenue by 27.09% to RM227.63 million, from RM179.1 million a year ago. The group declared a second interim dividend of 0.5 sen, to be paid on April 28. For the full FY20, the group's net profit surged 70.17% to RM42.95 million, from a net loss of RM144.01 million in the previous year, while revenue increased 32.2% to RM763.05 million from RM577.2 million.

UEM Sunrise Bhd saw its net loss for 4QFY20 ended Dec 31, 2020 widen to RM134.66 million, from RM28.87 million in the preceding quarter, on lower contributions from joint ventures and associates, as well as additional impairment of assets due to Covid-19. Revenue, however, surged 181% to RM611.64 million, from RM217.44 million in 3QFY20, mainly due to settlement of the sale of the en bloc serviced apartment to Scape Australia Management Pty Ltd. For the full FY20, the property developer recorded a net loss of RM277.28 million versus a net profit of RM221.6 million in the previous year. Full-year revenue plunged 60.92% to RM1.14 billion, from RM2.91 billion.

Chairman of the Employees Provident Fund Tan Sri Ahmad Badri Mohd Zahir has taken over the chairmanship of RHB Bank Bhd, effective today. Ahmad Badri will remain as the chairman of EPF. RHB said Ahmad Badri succeeds Tan Sri Azlan Zainol, who retired on Feb 28 after being with the group since 2005.

Property developer S P Setia Bhd said it has identified several potential areas for business diversification. It said logistics, e-commerce, healthcare and assisted senior living are among the markets to be explored by the group.

Property developer Yong Tai Bhd's subsidiary has been appointed the exclusive mining operator to undertake exploration works on a 100ha site in Bukit Kenderak in Pahang's Lipis district. Yong Tai said wholly-owned subsidiary YTB Land Sdn Bhd has signed an agreement with the registered holder of the mining lease of the land, Tengku Fahad Mua'adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd.

Berjaya Corp Bhd's newly minted chief executive officer Abdul Jalil Abdul Rasheed has acquired 70 million Berjaya Corp shares at 28 sen a share, giving him a 1.4% stake in the diversified conglomerate. The acquisition of equity interest by Jalil signifies good corporate governance, Berjaya Corp said.

Former executive director of Three-A Resources Bhd, Fang Siew Yee, has been convicted and sentenced for two offences related to insider trading by the Kuala Lumpur Sessions Court. The Securities Commission Malaysia said Fang was sentenced to one-day jail and a fine of RM5 million after she pleaded guilty to two separate charges of communicating inside information and acquiring shares when in possession of the said information.

Construction giant Gamuda Bhd has requested the trading of its shares to be suspended tomorrow, to make way for a material announcement. The group said its structured warrants will also be suspended.

Eco World Development Group Bhd (EcoWorld) said its wholly-owned subsidiary Eco World Capital Services Bhd has established a sukuk wakalah programme of RM500 million in nominal value. The subsidiary today issued RM180 million worth of sukuk wakalah with a tenure of five years under the programme. Proceeds from the sukuk issuance will be used for repayment of several identified existing borrowings and working capital requirements.

Bintai Kinden Corp Bhd has signed a third distribution agreement with Korean cold chain equipment manufacturer firm SLAB Asia Co Ltd to supply its cold chain boxes for the storage and distribution of Covid-19 vaccines in Indonesia. Bintai Kinden's subsidiary Bintai Healthcare Sdn Bhd was appointed the exclusive distributor for the cold chain boxes in Indonesia after the parties signed a separate distribution agreement dated March 15.

Office furniture maker Euro Holdings Bhd has proposed a bonus issue of up to 3.21 billion shares, on the basis of four bonus shares for every one share held of which the entitlement date will be announced later. It said the bonus issue is expected to be completed by the second quarter of 2021.

 Source: The Edge Markets

OSK's 4Q profit drops 25% to RM97m, plans three sen dividend

 OSK Holdings Bhd's net profit dropped 25.14% year-on-year to RM97.45 million in the fourth quarter ended Dec 31, 2020 (4QFY20), compared with RM130.17 million a year ago, despite posting a higher revenue.

OSK's revenue, meanwhile, grew by 15.1% to RM335.54 million from RM291.53 million in 4QFY19, thanks to its property segment, according to its filing with Bursa Malaysia.

The company also proposed a single-tier final dividend of three sen per share of which the dates of entitlement and payment will be announced in due course.

The group noted that its property segment's revenue grew 35% to RM230.91 million from RM171.45 million, mainly contributed by its ongoing projects and completed projects in Malaysia.

"The share of profit in 4QFY20, amounted to RM7.9 million, was contributed by the development of Melbourne Square in Melbourne, Australia compared with RM12.3 million recorded from the share of profit of the development of Agile Mont Kiara in 4QFY19.

"The property investment division recorded an impairment loss on property, plant and equipment and a fair valuation loss on investment properties amounting to RM29.5 million in 4QFY20," said OSK.

Apart from that, the group said the division continued to generate steady rental income from its office buildings, while operations of the retail shopping gallery remained challenging.

On a quarterly basis, net profit decreased slightly by 7.37% from RM105.21 million, while revenue inched up 4.97% from RM319.67 million in 3QFY20.

For the full year ended Dec 31, 2020 (FY20), net profit declined by RM339.34 million from RM412 million in the previous year, while revenue fell 10.1% to RM1.09 billion from RM1.21 billion.

On prospects, it said the performance from the property development division will continue to be supported by sales and progress billings from ongoing projects which have successfully secured high take-up rates.

"The property investment division is expected to generate a steady rental income stream from the offices at Plaza OSK and Faber Towers. Rental and occupancy at our Atria Shopping Gallery will continue to be under pressure with the contracting retail sales and the implementation of MCO (Movement Control Order) in January 2021 may hastened the closure of more stores.

"The construction division will continue to deliver our current outstanding order book of RM196.7 million as at Dec 31, 2020 while targeting to replenish new orders from pipeline projects from the property division. The segment will continue to focus on our internal projects and strive to ensure that our projects are delivered within the stipulated time, quality and at the same time optimising the development cost," said the group.

Barring any prolonged economic slowdown, the group said it is confident of performing satisfactorily in FY21.

Shares of OSK slipped 1.16% or one sen to 85 sen, giving it a market capitalisation of RM1.78 billion.

Source: The Edge Markets

 

Poh Kong glitters in Q2 earnings

Jewellery maker Poh Kong Holdings Bhd reported slower sales in three-month ended Jan 31, but higher gold prices and cost control initiatives boosted its earnings.

Net profit rose to RM11.35mil compared with RM10.6mil a year ago. Revenue declined to RM231.4mil from RM252mil previously.

“The implementation of movement control order severely impacted the Group’s operations and businesses, ” Poh Kong said in a filing with Bursa Malaysia yesterday.

However, margins improved due to the “uptrend of gold prices and the cost control initiative efforts together with streamlining and strengthening of operations and business, ” it said. Poh Kong expects the country’s economy to improved with the scheduled progress of the vaccine rollout.

“The group will continuously monitor the impact of these current uncertainties on its operations, financial obligations and performance while external factors are largely beyond our control, ” it said.

Barring unforeseen circumstances, the Board of Directors is confident that the Group has put in place adequate measures to meet the challenges ahead for financial year ending July 31,2021, ” it said.

Source: The Star 

Industronics signs MoU with Hong Kong’s Bluemount to venture into fintech

 Electronics company Industronics Bhd has entered into a non-binding memorandum of understanding (MoU) with Hong Kong's Bluemount Financial Group Ltd and its shareholder and director Li Hok Yin today to further discuss and negotiate the terms and conditions with regard to the proposed acquisition of Bluemount shares for the purpose of venturing into the financial services industry, specifically exploring the fintech industry.

Industronics said in a bourse filing that the MoU shall be valid and remain in effect for a period of one year from the date of the MoU.

According to Industronics, Bluemount was incorporated in Hong Kong in 2016 and is principally engaged in the business of financial services. It recorded a profit of HK$3.29 million on the back of HK$15.84 million revenue in its latest audited financial statements for the year ended March 31, 2020.

“The effects of the collaboration will only be determined upon the finalisation of terms of any collaboration agreement(s). Should any collaboration agreement materialise, it is expected to contribute positively to the future earnings of the group,” it said.

It also said the board of directors of the company is of the opinion that the MoU is in the best interest of the company and its shareholders.

At noon break, Industronics shares were three sen or 7.89% higher at 41 sen, valuing the group at RM71.7 million.

Source: The Edge

PDZ to venture into glove making

Loss-making container shipping firm PDZ Holdings Bhd is planning a scheme to raise as much as RM100mil for its glove manufacturing venture.

In a filing with Bursa Malaysia, PDZ said the proposed diversification was expected to contribute significantly to the group’s future revenue and earnings.

To raise funds for the new business, the company has proposed a corporate exercise.

First, PDZ has proposed to consolidate its existing shares and warrants on the basis of 10 units into one unit.

It will then proceed with the plan to issue new rights shares and free warrants on the basis of six new rights shares and three new warrants for every one consolidated share at a later date.

“The company intends to raise a minimum of RM10mil from the proposed rights issue with warrants to meet the funding requirements, ” it said.

PDZ said it has procured undertakings from executive director and CEO Datuk Christopher Tan Chor How and executive director Ho Jien Shiung to fully subscribe their entitlements and allotments.

Source: The Star

AmInvest Research retains overweight on auto sector

AmInvestment Research is maintaining its overweight stance on the auto sector with an unchanged total industry volume (TIV) projection of 575,000 units for 2021. In its research note on Wednesday, it expects the strong sales volume momentum to sustain throughout 1H2021, bolstered by the extension of the sales and service tax (SST) exemption from Jan 1 until June 30,2021. 

“We believe that the SST exemption will continue to spur buying interests for passenger vehicles, especially the national brands Proton and Perodua, ” it said. In February 2021, the auto sector recorded an improved TIV of 42,800 units (+30% MoM, +4% YoY), mainly driven by a major improvement in footfalls to showrooms after the lifting of the MCO for most states nationwide. 

“We expect March 2021 TIV to be higher MoM supported by the resumption of the Road Transport Department’s full services for all types of vehicle transactions. “We understand that the Proton B-segment X50 model has exceeded 50,000 booking units as at end-February, with 8,200 units already delivered to customers. 

 “We gathered from our channel checks that the waiting period for the X50 is more than six months, an indication of how well-received the model is locally. As of now, the global chip shortage issues have not affected both SUVs, ” it said. 

AmInvest Research noted Proton’s market share soared to a seven-year high at 27.3% in February, resulting in a runner-up YTD market share of 23.3%, behind Perodua’s 44.3%. Proton has introduced its sales volume target for 2021 at 132,000 units.

 Source: The Star

BIMB Investment hopes to achieve RM2.5b AUM by year end

BIMB Investment Management Bhd, a wholly-owned subsidiary of Bank Islam Malaysia Bhd, hopes to achieve assets under management (AUM) of RM2.5 billion by year end.

BIMB Investment chief executive officer Najmuddin Mohd Lutfi told a press conference after the virtual launch of BIMB-ARABESQUE Global Shariah Sustainable Equity Fund (BGSEF) that the group is managing a total fund of about RM1.7 billion currently.

He said he hopes its newly launched fund BGSEF will achieve AUM of RM100 million in the next two years.

“We hope that the new fund will contribute about 10% (to the total fund) in the next 24 months,” he added.

He also said 65% of the group’s current AUM is in equity, adding that it hoped to achieve 70% of its AUM to be in equity in the next 34 months.

“Currently, we are managing the largest Syariah environmental, social, and corporate governance (ESG) assets of about RM1 billion. The new fund is also (investing) in ESG asset. Hopefully, it will contribute additional equity growth for us,” he added.

BIMB Investment today launched BGSEF, a global shariah ESG equity feeder fund that seeks to achieve capital appreciation over a medium to long term period for investors. The fund offers investors globally diversified exposure in up to 100 Shariah-ESG stocks at all times.

Source: The Edge Markets

 

Lay Hong's Jeram farms have been declared free of the Salmonella Enteritidis

Lay Hong's Jeram farms have been declared free of the Salmonella Enteritidis (SE) after a comprehensive test by the Veterinary Services Department (DVS).

In a statement, the poultry company said the test showed negative results for SE. This effectively lifted the suspension of egg supply from its Jeram 1-CES 008 farm.

“This is a very comprehensive investigation conducted by the department, which includes testing on the eggs, environment chicken faeces, cloacal swap, feed, water and others from each farm at the lab in DVS Salak Tinggi, ” it said.

 

Source: The Star

Shahril bersara sebagai Presiden, CEO Sapura Energy

Tan Sri Shahril Shamsuddin akan bersara daripada Sapura Energy Bhd (Sapura Energy) hari ini sebagai Presiden dan Ketua Pegawai Eksekutif (CEO) kumpulannya.

Beliau akan digantikan oleh Datuk Mohd Anuar Taib yang mengambil alih pucuk pimpinan mulai 23 Mac, 2021.

Mohd Anuar yang menyertai Sapura Energy sebagai Pengarah Bebas pada Ogos, 2020 dilantik sebagai Ketua Pegawai Operasi dan CEO dilantik pada Oktober, 2020.

Pelan peralihan kepimpinan Sapura Energy diumumkan tahun lalu,  menjelang Shahril mencapai usia persaraan 60 tahun pada 22 Mac, 2021.

"Bagi pihak lembaga pengarah, kami ingin mengucapkan terima kasih kepada Tan Sri Shahril, visi dan kesungguhannya menjadikan Sapura Energy menjadi syarikat multinasional Malaysia yang mampu bersaing dan menang di peringkat antarabangsa," kata Pengerusi Sapura Energy, Tan Sri Shamsul Azhar Abbas dalam satu kenyataan hari ini.

Shamsul Azhar berkata kepemimpinan Shahril telah membolehkan kumpulan itu berkembang daripada penggiat di peringkat tempatan bertukar kepada sebuah syarikat tenaga tersohor yang merangkumi seluruh nilai rantaian huluan dan wawasannya meletakkan asas bagi kumpulan itu untuk maju selain daripada minyak dan gas dan meneroka dalam bidang tenaga yang boleh diperbahrui.

Shahril menubuhkan Sapura Energy pada pertengahan tahun 1990-an, membangunkan kumpulan tersebut pada awalnya sebagai kontraktor 'diving' kepada sebuah syarikat tenaga bersepadu global.

Kumpulan itu menjalankan operasinya lebih daripada 20 negara dengan jumlah tenaga kerja di peringkat antarabangsa melebihi 11,000 orang daripada 37 kewarganegaraan, bekerja dan bekerjasama di 12 pusat operasi di seluruh dunia.

Rakyat Malaysia merangkumi sekitar 86 peratus dalam kumpulan pekerja mahirnya.

Sapura Energy telah menyumbang kira-kira RM89 bilion untuk ekonomi Malaysia sejak lima tahun lalu dengan lebih daripada RM15 bilion nilai kontrak diberikan kepada vendor tempatan.

Dalam tempoh tiga tahun lalu, kumpulan itu membawa masuk lebih daripada AS$2 bilion dalam mata wang asing. - BERNAMA

Berjaya Food rancang 12 cawangan baharu Starbucks

 Berjaya Food Bhd komited untuk membuka lebih banyak rangkaian makanan dan minuman di bawah kendaliannya, termasuk Starbucks di sebalik cabaran pandemik COVID-19.

Ketua Pegawai Eksekutif Berjaya Food, Sydney Quays, berkata Starbucks terus menjadi rangkaian utama kumpulan walaupun dalam tempoh mencabar ketika ini, membuktikan orang ramai masih mempercayai jenama itu.

Beliau yang juga Pengarah Urusan Starbucks bagi Malaysia dan Brunei berkata, kumpulan akan membuka 12 cawangan baharu Starbucks di Malaysia tahun ini termasuk cawangan pertamanya di Perlis dalam beberapa minggu akan datang.

Katanya, Starbucks adalah jenama utama bagi Berjaya Food dengan sumbangan sehingga 80 peratus kepada kumpulan dan akan kekal menjadi pemangkin utama pertumbuhan pendapatannya.

"Tahun ini, kumpulan optimis akan pulih berdasarkan situasi semasa. Sektor makanan dan minuman akan pantas meningkat kembali. Starbucks juga sentiasa menjadi jenama pilihan kepada orang ramai di Malaysia.

"Malah, kumpulan juga dalam perancangan awal dalam memperkenalkan platform e-dagang sendiri. Bagaimanapun, ia masih di peringkat cadangan dan tiada keputusan lagi ketika ini," katanya.

Beliau berkata demikian selepas pelancaran pembukaan rangkaian kedai terbaharu Starbucks di Tropicana Garden Mall (TGM) dekat sini, hari ini.

Rangkaian terbaharu itu juga adalah cawangan Starbucks Reserve ke-13 yang dibuka di Malaysia.

Starbucks Reserve adalah cawangan yang berbeza dengan menampilkan keunikan tersendiri selain mempunyai ruangan kedai yang lebih besar terbahagi kepada dalaman dan luaran.

Starbucks Reserve TGM mempunyai dua bar kaunter yang menyediakan pelbagai kopi buatan tangan selain rangkaian kopi sedia adanya.

Antara keunikan utama di Starbucks Reserve TGM adalah mural 'Wall Of Gratitude' yang mempamerkan gambar lebih daripada 200 petugas barisan hadapan.

Sementara itu, Tropicana Corporation Bhd optimis sektor peruncitan akan kembali pulih tahun ini pasca pandemik COVID-19 sekali gus meningkatkan kembali kadar kepenghunian pusat membeli belahnya, Tropicana Garden Mall (TGM).

Pengarah Urusan TGM, Andrew Ashvin, berkata pihaknya menyasarkan kadar penyewa di TGM akan meningkat kepada 80 peratus pada hujung tahun ini berbanding 43 peratus ketika ini.

Beliau berkata, pusat membeli belah akan kembali dikunjungi orang ramai dalam masa terdekat disebabkan peningkatan semula keyakinan terhadapan pandemik itu.

"Ketersediaan vaksin COVID-19 adalah petanda positif peningkatan semula kunjungan pusat membeli belah termasuk di TGM dalam tempoh terdekat.

"Kami yakin dengan peningkatan keyakinan orang ramai itu, sektor peruncitan akan turut melonjak dan membuatkan penyewa kembali bersedia membuka kedai.

"Malah, TGM akan menyediakan barisan penyewa terkemuka dan akan menjadi tumpuan orang ramai," katanya.

 

Source: Berita Harian

WCT naik taraf Lapangan Terbang Sultan Ismail Petra

WCT Bhd, anak syarikat milik penuh WCT Holdings Bhd memperoleh kontrak RM440 juta daripada Kementerian Pengangkutan untuk melaksanakan kerja naik taraf dan penambahan Lapangan Terbang Sultan Ismail Petra di Kota Bahru, Kelantan.

Dalam makluman kepada Bursa Malaysia hari ini, syarikat pembinaan itu berkata, projek itu merangkumi kerja membina, infrastruktur 'landside', infrastruktur 'airside' dan semua kerja kejuruteraan bagi mereka bentuk, membina, membekal, memasang, menyiap, menguji, melaksana serta menyelenggara Lapangan Terbang Sultan Ismail Petra.

"Kerja di bawah kontrak itu dijangka bermula pada April 2021 dan akan siap pada April 2024.

"Tiada mana-mana pengarah atau pemegang saham utama syarikat atau individu yang berkait dengan mereka memiliki sebarang kepentingan, sama ada langsung atau tidak langsung, dalam penganugerahan kontrak ini," katanya.

 

Source: Berita Harian

Matrix Concept Berhad : Corporate Presentation insights by Mr Louis Tan, Chief Financial Officer

Sharing a very interesting corporate presentation of Matrix Concept Berhad by Mr Louis Tan, Chief Financial Officer.

 

 

Source : CGS CIMB