Scientex Bhd ( Valuation: 1.50, Fundamental: 1.70)'s net profit for the first quarter ended Oct 31, 2015 (1QFY16) doubled to RM60.85 million, from RM30.27 million a year ago, on higher packaging product manufacturing revenue and property development income.
In its quarterly report to Bursa Malaysia, Scientex said revenue for the quarter rose to RM550.6 million, as compared to RM431.07 million in 1QFY15.
Scientex said it registered "higher contribution from both the industrial and consumer packaging products, as well as the contribution from the newly-acquired subsidiary SGW Ipoh".
The company said property revenue rose to RM158.6 million, from RM110.8 million, on contribution from its projects in Johor and Melaka.
Telecommunication specialist Instacom Group Bhd ( Valuation: 0.20, Fundamental: 1.95) has fixed the issue price for its private share placement at 25 sen each.
Instacom had last month proposed to undertake the private placement of up to 10% of its issued and paid-up share capital to third-party investors.
The company said then that the exercise could involve up to 323.42 million new shares.
Instacom said in a filing with Bursa Malaysia that the issue price represented a discount of approximately 9.71% to the five-day weighted average market price of 27.69 sen for its shares up to yesterday (Dec 16).
Kossan Rubber Industries Bhd is transferring its technical rubber business to its wholly-owned subsidiary Kossan Industries Sdn Bhd as part of an internal reorganisation to consolidate its gloves businesses under Kossan Gloves Sdn Bhd.
"The proposed reorganisation is an important step in Kossan Group ( Valuation: 1.10, Fundamental: 2.10)'s rationalisation in streamlining its business operations. The objective is to deliver operational efficiency and provide the Kossan Group with greater operational agility and flexibility to respond quickly in an ever evolving market," Kossan said in a filing with Bursa Malaysia.
In order to effect the proposed reorganisation, Kossan signed separate sale and purchase agreements with Kossan Gloves and Kossan Engineering (M) Sdn Bhd to purchase the businesses and undertakings, including relevant assets and liabilities, as well as with Kossan Industries on the transfer of the group's technical rubber business to Kossan Industries.
The proposed reorganisation is not expected to have any material impact on the net assets and gearing of Kossan Group.
Gadang Holdings Bhd has secured civil and infrastructure works from Petroliam Nasional Bhd (Petronas) at Pengerang, Johor, worth RM185 million.
In a filing with Bursa Malaysia, the civil engineering outfit said its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd, has been awarded with the contract by PRPC Utilities and Facilities Sdn Bhd, a subsidiary under the Petronas Group last Friday (Dec 11).
Gadang is tasked to undertake a project known as "Utilities, Interconnecting, Offsite (UIC) facilities: procurement, construction and commissioning (PCC) of civil and intrastructure works" at Storm Water East Area at Pengerang, Johor.
The 20-month contract will commence from the date of the contract award.
Gadang expects the contract to contribute positively to its earnings for the financial year ending May 31, 2016 onwards.
Ajinomoto (M) Bhd ( Valuation: 1.40, Fundamental: 2.80) has received an unusual market activity query from Bursa Malaysia, on the rise in its share price recently.
Ajinomoto closed 25 sen or 2.7% lower at RM9.00, with 83,900 shares traded, giving it a market value of RM562.4 million. Ajinomoto shares hit an intra-day high of RM9.30 in early trade.
On Wednesday, shares of Ajinomoto rose as much as 24.83% or RM1.85 to reach a record high of RM9.30. The counter later pared gains to close at RM9.25. Year to date, the counter has risen 64.55%.
For the second financial quarter ended Sept 30, 2015 (2QFY16), its net profit jumped 62.47% to RM12.38 million, from RM7.62 million a year ago. Revenue was up 6.22% at RM93.96 million, from RM88.46 million in 2QFY15.
For the first half ended Sept 30, 2015 (1HFY16), net profit surged 43.1% year-on-year to RM22.7 million on the back of an 8.5% growth in revenue to RM189.5 million. The increase in net profit was mainly due to higher sales and better profit margins from export sales.
Wintoni Group Bhd ( Valuation: 0.90, Fundamental: 1.20) has once again delayed the submission of its accounts for the third financial quarter ended Sept 30, 2015 (3QFY15) to Jan 31, 2016, instead of the earlier announced date of Dec 31, 2015.
In a filing with Bursa Malaysia, Wintoni said the delay is due to it only recently finalising the appointment of a third party audit firm to provide an opinion on its results, and more time is required for the audit firm to finalise its opinion.
To recap, Wintoni, a business solution provider and designer of automation systems, had seen a 62.5% drop in its share price from 16 sen on Nov 25 to 6 sen on Dec 7, after the company said it was unable to submit its financial statements for 3QFY15 due to loss of data, following a recent break in to its office.
As a result of its failure to submit its 3QFY15 results, the group's shares were suspended from Dec 8.
Anzo Holdings Bhd ( Valuation: 1.40, Fundamental: 2.05) has mutually agreed with vendor Datuk Lim Thiam Huat to terminate a sale and purchase agreement (SPA) to acquire a RM7.5 million leasehold property, due to weak market conditions.
In a filing with Bursa Malaysia, Anzo, formerly known as Harvest Court Industries Bhd ( Valuation: 0.30, Fundamental: 1.20), said it had entered into a settlement agreement on Dec 17 to terminate the June 19, 2014 SPA.
Anzo originally planned to acquire the leasehold property measuring 40,480 square metre, together with four units of the warehouse and two units of a Tenaga Nasional Bhd ( Valuation: 1.20, Fundamental: 1.30) substation in Jempol district, Negri Sembilan.
Anzo had proposed to pay the RM2.25 million deposit via internally-generated funds, and the remainder through bank borrowings.
Telekom Malaysia Bhd (TM) has inked two public-private partnership agreements with the federal government today for the implementation of the High Speed Broadband Project Phase 2 (HSBB2) and the Sub Urban Broadband Project (SUBB), which will see it forking out RM2.3 billion of the total RM3.4 billion total cost of the projects over a 10-year period.
The agreements are for the deployment of the access and domestic core networks to deliver end-to-end broadband network insfrastructure and services, as well as increasing coverage for the nation, according to a statement from TM.
Both the HSBB2 and SUBB projects were announced under Budget 2015 last year.
TM said the 10-year HSBB2 project encompasses the deployment of additional access and core capacity covering state capitals and selected major towns throughout the country. Under the project, 95 additional exchanges will be HSBB-ready, providing access to 390,000 premises by 2017.
“It includes planning, designing, implementation, operation and maintenance of HSBB network infrastructure and services,” TM added.
The government will be investing RM500 million in HSBB2, while TM will be taking up RM1.3 billion of the cost.
As for the SUBB project, TM said the infrastructure will also be rolled out over 10 years, with the government investing RM600 million and TM investing RM1 billion, to provide high-speed broadband access to over 420,000 premises by 2019.
The HSBB2, according to TM, will cover other priority economic areas, including state capitals and selected major towns; while the SUBB will cover sub-urban and rural areas. Both projects will include educational institutions within the rollout areas.
TM will also roll-out last mile access network for both HSBB2 and SUBB projects to homes and businesses using FTTH, Ethernet-to-the-home (ETTH), and Very High Speed Digital Subscriber Line 2 (VDSL2) technologies.
Comintel Corporation Bhd ( Valuation: 1.50, Fundamental: 0.55) saw its net profit soar five to RM4.86 million or 3.47 sen per share in the third quarter ended Oct 31, 2015 (3QFY16), from RM871,000 or 0.62 sen per share a year ago, on higher profit margins from its manufacturing sector and the strengthening of the US dollar.
In a filing with Bursa Malaysia, Comintel said its revenue in 3QFY16 rose 31.13% to RM109.85 million, from RM83.77 million in the third quarter of financial year 2015 (3QFY15).
For the first nine months of financial year 2016 (9MFY16), the company recorded a net profit of RM7.6 million or 5.43 sen per share, from a loss of RM1.97 million; revenue increased 19.43% to RM267.91 million in 9MFY16, from RM224.33 million in 9MFY15.
Comintel said profitability improved on account of higher profit margins contributed by the manufacturing segment, while strengthening of the US dollar, shipment of better margin products and cost improvement initiatives have helped to improve profit margins.
The manufacturing segment recorded an increase in revenue of RM23.2 million to RM105.2 million, due to more products shipped in 3QFY16; as well as the strengthening of the US dollar against the ringgit.
The company said its communication and system integration segment saw an increase of RM2.5 million to RM4.3 million, due to the completion of more projects in 3QFY16.
REDtone International Bhd ( Valuation: 0.50, Fundamental: 1.40) posted a net profit of RM398,000 or 0.05 sen per share in its second quarter ended Oct 31, 2015 (2QFY16), on a revenue of RM35.07 million.
There is no comparative figure as the company has changed its financial year end from May 31 to April 30 on Aug 7 this year, to be coterminous with its ultimate parent company, Berjaya Corp Bhd ( Valuation: 2.40, Fundamental: 0.90) (Valuation: 2.40, Fundamental: 0.90)'s financial year end.
For the cumulative six months (1HFY16), REDtone's net profit was RM936,000 or 0.12 sen per share, while revenue was RM58.09 million.
Despite expecting data and broadband services to continue to support its earnings potential, REDtone does not anticipate significant growth.
"In FY16, despite a good inventory of projects in hand, we have not been able to crystallise profits, due to delays and projects put on hold,” it said.
(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.)
Companies in the news - Scientex, Instacom, Kossan, Gadang, Ajinomoto, Wintoni, Anzo, Telekom Malaysia, Comintel and REDtone
http://www.theedgemarkets.com/my/article/scientex-instacom-kossan-gadang-ajinomoto-wintoni-anzo-telekom-malaysia-comintel-and-redtone
