KUALA LUMPUR (April 29): Based on corporate news flow and announcements today, stocks that may be in focus next Tuesday (May 3) could include: Selangor Dredging Bhd, Prolexus Bhd, S P Setia Bhd, Aeon Co (M) Bhd, CLIQ Energy Bhd, CIMB Group Holdings Bhd, Texchem Resources Bhd and Sedania Innovator Bhd.
Tin miner turned property developer Selangor Dredging Bhd is venturing into the energy efficient industry by marketing environmental-friendly products and solutions.
Selangor Dredging’s wholly-owned subsidiary SDB Green Energy Pte Ltd has entered into an International Area Development Agreement with US-based Greener Energy LLC, which the latter awarded the former licences to own and operate stores in Malaysia; market, develop and supervise stores; and recruit third party franchisees to establish and operate SuperGreen Solutions Stores.
While no monetary details is available in the filing, Selangor Dredging disclosed that the businesses includes sale and installation of solar power panels, solar car ports, electric vehicle charge points and stations, efficient water heating systems, atmospheric water filters, skylighting and natural lighting systems, light-emitting diodes and other efficient lighting, ventilation, weatherization, and insulation, wind power, energy management and climate control systems.
Prolexus Bhd fixed the issue price of its rights shares at a steep discount, at RM1 each, and exercise price of warrants at RM1.20 each.
Prolexus announced the board has resolved to fix the issue price of the rights shares at RM1 each, which represents a discount of RM0.59 or approximately 37.1% to the theoretical ex-rights price (TERP) of Prolexus shares of approximately RM1.59.
The board has also resolved to fix the exercise price of the warrants at RM1.20 each, which represents a discount of RM0.45 or approximately 27.3% to the TERP of Prolexus shares of approximately RM1.65.
The exercise ratio is one warrant to one share.
On Dec 11, 2015, Prolexus proposed renounceable rights issue of up to 62.53 million new ordinary shares of 50 sen each in Prolexus (rights shares), together with up to 62.53 million free detachable warrants, on the basis of one rights share together with one warrant for every two existing ordinary shares of 50 sen each held by the entitled shareholders.
The exercise was to raise gross proceeds of between RM55.5 million and RM62.5 million for the construction of a new garment factory and the setting up of a new fabric mill.
Also, Prolexus’ indirect wholly-owned subsidiary, Trans Pacific Textile (VN) Company Ltd, will be leasing two parcels of industrial land, measuring 61,950 square metres in Vietnam, for a total sum of US$2.79 million (RM10.88 million) or US$45 per square metre, to set up a plant for the manufacturing of apparels.
The indirect unit inked an agreement with Long Jiang Industrial Park Development Co today, to lease the land until Nov 26, 2057.
Prolexus said the construction of a manufacturing plant in Vietnam is in line with the group’s expansion plan to cater for its apparel products, as well as in meeting the growing demands from customers.
It said the rental was arrived at, after taking into account the potential and market value of the land, as appraised by Indochina Valuation Service Joint Stock Company, an independent registered valuer in Hanoi City, Vietnam, which pegged the land at US$2.97 million.
Prolexus intends to fund the lease through internally-generated funds, which will be paid in three instalments.
The transaction is expected to be completed by the third quarter of this year.
Property developer S P Setia Bhd is purchasing its fifth land in Melbourne, Australia, for A$101 million (RM300.78 million), for a mixed development worth A$640 million (RM1.905 billion).
The purchase comes on the heels of another land deal that the group sealed for the purchase of a 850-sq-m site in Prahran, Melbourne, for A$10 million, just two weeks earlier.
S P Setia’s unit, Setia (Melbourne) Development Company Pty Ltd, has entered into a conditional sale contract with Australian telecommunications player, Telstra Corporation Ltd, to acquire the 1.02 acres of land in the Melbourne Central Business District (CBD).
The condition precedent to the acquisition is the delivery of a guarantee and indemnity executed by S P Setia to Telstra by May 20, 2016, or such later date as the parties may agree to in writing.
The purchase of the land, located opposite the Carlton Gardens, will be satisfied by cash and bank borrowings.
S P Setia’s draft plan is to develop the land into two residential towers, comprising up to 800 residential units with a retail podium space on the land, estimating a gross development value of A$640 million.
The property developer plans to launch the project in the second half of 2017. As such, it expects to complete the acquisition by the second quarter of 2017.
The company said its proposed mixed development project, in addition to the condominium development in Fulton Lane, Parque Melbourne on St. Kilda Road and the recent acquisition of tracts of land in Carnegie and Prahran, will allow S P Setia to strengthen its presence in the Australian property market.
Meanwhile, Aeon Co (M) Bhd has aborted its RM36.02 million land acquisition deal in Kedah today, and is seeking a refund amounting to RM6.48 million from Asia Plywood Company Sdn Bhd, the vendor of the deal.
The sum of RM6.48 million was the earnest deposit, balance deposit and the first payment of the transaction.
The sale property has been aborted on April 29, due to the non-fulfilment of the conditions precedent within the extended conditional period, it added.
Aeon had on June 3, 2011 announced it had entered into a sale and purchase agreement with Asia Plywood to acquire a piece of freehold land, measuring 8.162 hectares in Sungai Petani, Kedah, for RM36.02 million to build a shopping centre.
CLIQ Energy Bhd expects to obtain a court order for the winding up of the company on May 31, following the hearing of the winding up petition filed by the company under Section 218(1)(h) of the Companies Act 1965 on April 25.
However, in the event there is any unforeseen intervention and/or if the petition is contested by any party, the court order may not be obtained on this date and the proceedings may be delayed, it said in a filing.
Upon obtaining the court order, CLIQ said Onn Kien Hoe and/or Mr Mok Yuen Lok from Crowe Horwath Advisory Sdn Bhd will be appointed as the liquidators for the company.
Furthermore, the liquidators will be permitted to make payment to and/or to take such necessary steps to meet the requirements as are provided for under Article 61C(7) of the company's articles, and to make a substantial interim payment to entitled shareholders.
The detailed timeline on the proposed distribution of monies in the trust account to the entitled shareholders, will be announced upon obtaining the court order, CLIQ added.
CIMB Group Holdings Bhd’s Indonesian unit, PT Bank CIMB Niaga, saw its net profit for its first quarter ended March 31, 2016 (1QFY16) jump 3.2 times to 268.68 billion rupiah, from 82.72 billion rupiah a year ago, mainly due to lower impairment of loans and increased non-interest income.
CIMB Niaga’s statements of comprehensive income showed impairment of loans fell 15.86% to 1.21 trillion rupiah for 1QFY16, from 1.44 trillion rupiah in 1QFY15.
The improved net profit came on the back of a 1.4% year-on-year (y-o-y) increase in net interest income and a 18.5% rise in non-interest income from 1QFY15, mainly due to improved foreign exchange and capital market businesses.
On top of that, the group’s operating expenses and provisions have declined by 1.4% and 7.3% on y-o-y basis, respectively.
For 1QFY16, CIMB Niaga reported a net interest income of 2.84 trillion rupiah, compared with 2.8 trillion rupiah in previous corresponding quarter.
CIMB Niaga’s president director Tigor M Siahaan said the group remains cautious, given the economic situation. The group hopes its positive performance in this quarter, will provide a strong base for our results, going forward.
As at 1QFY16, CIMB Niaga booked 231.67 trillion rupiah worth of total assets in its balance sheet, maintaining its position as Indonesia’s fifth largest bank by assets.
Nevertheless, CIMB Niaga noted total gross loans were lower at 171.02 trillion rupiah as at 1QFY16, as the bank maintained a “conservative growth strategy”.
Plastic packaging manufacturer Texchem Resources Bhd swung into red with a net loss of RM2.21 million in the first quarter ended March 31, 2016 (1QFY16), from a net profit of RM4.99 million a year ago, due to foreign exchange loss and dismal performance across all business segments.
The group recognised forex losses of RM3.5 million, which was mainly from its industrial, polymer engineering division and food division, due to stronger ringgit.
Revenue for 1QFY16 was 7.3% lower at RM256.84 million, versus RM277.09 million in 1QFY15. No dividend was declared for the current quarter under review.
Going forward, the polystyrene products manufacturer expects the business environment for 2016 to remain challenging, due to prevailing global economic conditions.
It expects the restaurant division and food division's performance to improve, on anticipation domestic consumer demand will improve after suffering from the negative impact of the goods and services tax in the second half of 2015.
On its industrial and polymer engineering divisions, it said both segments continue to be influenced by global demand and that their performance would be dependent on the expected gradual recovery of the global economy.
Sedania Innovator Bhd has appointed Mahadzer Arshad as its new chief executive officer, replacing Kamshul Kasim who stepped down from his post on May 1 due to health problem.
According to Sedania, Mahadzer has more than 28 years of relevant experience in the telecommunication- and technology-related industry.
His track record includes 17 years of working experience at senior management level in start-up companies, multinational corporations and other listed companies.
Companies in the news - Selangor Dredging, Prolexus, SP Setia, Aeon, CLIQ Energy, CIMB Group, Texchem and Sedania
http://www.theedgemarkets.com/my/article/selangor-dredging-prolexus-sp-setia-aeon-cliq-energy-cimb-group-texchem-and-sedania
