KUALA LUMPUR (Nov 15): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Nov 16) may include: BHS Industries, Tanjung Offshore, EcoWorld, L&G, Tadmax, TAHPS and Apex Healthcare.
BHS Industries Bhd posted a net loss of RM2.3 million in its first financial quarter ended Sept 30, 2016 (1QFY17) compared with a net profit of RM163,000 a year ago as a result of a new business which incurred pre-operating expenses of RM700,000.
The commercial printer said in a bourse filing that the business has yet to generate revenue, adding that it also incurred a loss in the printing business.
Revenue was 5.5% higher at RM6.7 million in 1QFY17 from RM6.3 million in 1QFY16.
In spite of the losses made in the printing business following its move from a rented factory to a newly acquired factory, BHS said it added two machines to realign its business strategy to enhance production efficiency and increase competitiveness.
Tanjung Offshore Bhd's wholly-owned subsidiary Gas Generators (M) Sdn Bhd (GGSB) is planning to purchase a 51% stake in Wenmax Bhd, a Petroliam Nasional Bhd (Petronas) licensed vendor, for RM8 million to expand its upstream oil and gas (O&G) sector.
Tanjung Offshore said Wenmax — an industrial equipment, machineries, spare parts and lubricants oil supplier — also supplies its products to Petronas' group of companies for its O&G projects.
GGSB today entered into a share sale agreement with Megaxus Resources Sdn Bhd, which wholly owns Wenmax, to acquire 510,000 shares, representing 51% of the equity interest.
Tanjung Offshore said the acquisition would enable it to improve its financial position as it expects to consolidate positive earnings from Wenmax.
Wenmax is the sole agent for international manufacturers in Malaysia for O&G equipment-related products, including offshore loading discharge marine hoses, integrated custody metering systems, process packages, sand management systems and valve safety systems.
Eco World Development Group Bhd (EcoWorld) together with the Employees Provident Fund Board (EPF) will jointly develop a piece of 2,198.4-acre leasehold land in the northwestern Klang Valley corridor in Kuala Selangor into a mixed project estimated to be worth RM15 billion.
EcoWorld said the development involves a mixed residential and commercial development dubbed 'Eco Grandeur' as well as an integrated business park named 'Eco Business Park V', which will be developed by its unit Paragon Pinnacle Sdn Bhd, the joint venture company (JVCo).
A subscription and shareholders agreement was inked by the EPF with EcoWorld and Paragon Pinnacle, which will see EPF subscribe to a 40% stake in the JVCo.
With that, EPF is required to provide shareholders advances of RM367 million to the JVCo to fund the proposed developments.
This is the second partnership between EcoWorld and EPF to jointly develop a strategic project — the first being Bukit Bintang City Centre — and the third development that is being undertaken via the group's partnership-for-growth model.
Land & General Bhd (L&G) has proposed to buy over four companies from Malaysia Land Properties Sdn Bhd for a sum of RM298.32 million, which will allow the group to replenish its land banks for immediate and future developments.
The four companies are Primal Milestone Sdn Bhd (valued at RM128.47 million), Triumph Bliss Sdn Bhd (worth RM118.15 million), Forward Esteem Sdn Bhd (valued at RM45.73 million) and Quantum Bonus Sdn Bhd (worth RM5.97 million).
The acquisitions will allow the group to purchase sizeable strategically located land banks in the Greater Klang Valley area in an "expeditious manner" to take advantage of the current sluggish property market, according to the group.
It will also "enlarge and strengthen the current earnings base of the group with future contributions from the ongoing and future developments on the land banks and investments to be acquired".
Property and construction player Tadmax Resources Bhd, whose third-quarter net loss widened 29.5% year-on-year, has warned that it is expected to record operating losses for the current financial year ending Dec 31, 2016 (FY16).
Net loss widened to RM3.64 million or 0.71 sen loss per share in 3QFY16 from RM2.81 million or 0.65 sen loss per share in 3QFY15, mainly due to initial expenditure incurred by a new property project in Taman Metropolitan, Kepong, which is expected to be launched sometime in December 2016, as well as higher finance cost.
This was, however, partly offset by the higher profits recognised by the industrial supplies business segment.
The group's revenue increased threefold from RM3.39 million in 3QFY15 to RM13.61 million in 3QFY16, on higher percentage completion of Phase 1 of its property project in Ganggarak, Labuan, coupled with commencement of revenue recognition from Phase 2 of the same development since the second quarter of 2016.
Tadmax said with the Phase 1 of the project in Ganggarak aimed to be completed in the first half of 2018, contribution towards the group's revenue is expected to be higher in the ensuing period as it anticipates higher percentage of completion.
"(However,) as the development involves affordable housing, Phase 1 will not make any positive contribution towards profitability," it added.
The group, however, noted that the earlier-anticipated positive contribution from its new development project in Taman Metropolitan known as Mizumi Residences, which is presently undertaking earthworks on-site, will only be recognised in FY17, following rescheduled launch of the project which is now expected to be sometime next month.
TAHPS Group Bhd's net profit declined by 41.3% to RM3 million or four sen per share for the second financial quarter ended Sept 30, 2016 (2QFY17) from RM5.1 million or 6.82 sen per share in 2QFY16, dragged down by weak performance in its plantation and property development divisions.
Revenue shrank 25.7% to RM16.5 million from RM22.2 million a year ago.
The deterioration in performance in the property development segment was mainly caused by the weak demand for new properties, whereas lower yield and ongoing replanting exercise impacted its plantation unit, the group said.
Moving ahead, it is expecting another challenging year for its property division for financial year ending 2017. Its plantation segment is also undergoing a replanting programme; hence it is not expected to contribute significantly to the performance of the group in the ensuing financial period.
Apex Healthcare Bhd's net profit rose 57.5% to RM8.74 million or 7.46 sen a share in the third quarter ended Sept 30, 2016 (3QFY16) versus RM5.38 million or 4.59 sen a share a year ago, driven by higher revenue and profit contribution from its associate Straits Apex Sdn Bhd.
Straits Apex is involved in the contract manufacturing of orthopaedic devices.
Revenue also rose 11.5% at RM142.96 million in 3QFY16 compared with RM128.27 million in 3QFY15.
Apex Healthcare said revenue from all business units performed in line with expectations, with consistent contributions from group-branded pharmaceutical and consumer products, distribution agencies and pharmaceutical wholesale in both Malaysia and Singapore.
