KUALA LUMPUR (April 26): Based on corporate news flow and announcements today, stocks in focus tomorrow (Wednesday, April 27) could include: Unisem (M) Bhd, Reach Energy Bhd, Globetronics Technology Bhd, Petronas Gas Bhd (PetGas), Nestle (Malaysia) Bhd, Vivocom International Holdings Bhd, British American Tobacco (Malaysia) Bhd (BAT Malaysia), YFG Bhd, Excel Force MSC Bhd, Maxwell International Holdings Bhd, Sasbadi Holdings Bhd, Pasukhas Group Bhd and Seacera Group Bhd.
Unisem (M) Bhd achieved a 47.4% jump in its net profit for the first financial quarter ended March 31, 2016 (1QFY16) to RM34.7 million or 4.73 sen a share, from RM23.54 million or 3.49 sen a share in the previous corresponding quarter.
In a filing to Bursa Malaysia today, Unisem attributed its increase in profitability to higher revenue recorded, as well as improved margins from better contribution in its wafer bumping and advanced package operations.
Quarterly revenue grew 13.5% at RM317.81 million, from RM280.06 million a year ago, due to an improvement in average selling prices as a result of the stronger US dollar against both the ringgit and the renminbi in the quarter compared to a year ago.
As for its prospects, Unisem said it expects the group's performance to improve for the second financial quarter and remain satisfactory until the end of the financial year.
Reach Energy Bhd, an oil and gas special purpose acquisition company (SPAC) that is targeting to submit its qualifying asset (QA) proposal to the Securities Commission Malaysia by early May, has urged investors, especially institutional investors, to look at the long-term prospects of the QA.
Reach Energy has proposed to acquire a 60% stake in Kazakhstan's Emir-Oil Fields for US$154.9 million. Emir will be Reach Energy's first hydrocarbon asset and also its first QA since its initial public offering.
Listed in August 2014 as the fourth SPAC listed on Bursa Malaysia, Reach Energy has 16 months to go before the three-year deadline for its QA.
Globetronics Technology Bhd’s net profit for the first quarter ended March 31, 2016 (1QFY16) plunged 78.5% to RM3.68 million or 1.31 sen a share, from RM17.15 million or 6.1 sen a share a year ago.
The semiconductor firm attributed the drop to lower volume loadings from some of its customers as a result of lower demand from end customers, as well as a forex loss of RM4.6 million.
Lower customer demand had also caused revenue to drop 33.8% to RM58.74 million in 1QFY16 from RM88.7 million in 1QFY15, the group said in a filing to Bursa Malaysia today.
Yesterday, Globetronics received an unusual market activity query from Bursa Malaysia, following a 17.3% drop in its share price to RM4.44, from RM5.37 on April 21.
In its reply today, Globetronics said it is not aware of what could have triggered the drop in its share price, save for several articles that may relate the company as the contract manufacturer of sensor components to a leading global smartphones/tablets manufacturer.
Petronas Gas Bhd (PetGas) will be allocating RM4.5 billion in capital expenditure (capex) for the next five years, of which RM300 million has been budgeted for the current financial year, said the group chairman Tan Sri Shamsul Azhar Abbas.
A large bulk of the capex will be spent on two major projects — the Pengerang Gas Pipeline project which is expected to be completed in the first quarter of 2018, and the Air Separation Unit project, which final investment decision is expected in the current quarter.
"The regasification terminal is currently 24% complete, and the first tank will be commissioned by the end of next year." said Shamsul at the press conference after the group's annual general meeting today.
He mentioned that the two projects will be PetGas' growth catalysts, and that it is fully geared to handle any increases in the country's demand for gas.
Nestle (Malaysia) Bhd entered into its financial year 2016 (FY16) on a high note, as its net profit for the first quarter ended March 31, 2016 (1QFY16) jumped 17.5% to RM220.7 million, from RM187.9 million a year ago, on improved revenue, favourable trends in most of the raw material prices (although it was partially offset by higher foreign exchange), as well as diligent cost management.
Its operating expenses, owing to the timing of the marketing investment activities, were lower for the quarter; coupled with the lower effective tax rate, these have contributed to higher net profit.
Revenue for 1QFY16 rose 2.8% to RM1.31 billion, from RM1.28 billion in 1QFY15, driven mainly by robust domestic sales and steady growth in export.
On the group’s prospects, the management expects 2016 to continue to be a challenging year, both locally and globally.
Vivocom Intl Holdings Bhd's subsidiary Vivocom Enterprise Sdn Bhd (VESB) has inked a heads of agreement (HoA) for a RM90 million contract to construct a mixed development on a 3.11-hectare land in Hulu Kinta, Perak.
In a filing with Bursa Malaysia, Vivocom said its unit entered into the HoA with Green Ventures Development Bhd, which will act as the developer of the mixed development with a gross development value of RM112 million on the 3.11-ha land.
Subject to terms and conditions of the HoA, Green Ventures will appoint VESB as the turnkey contractor to design and construct the structures and infrastructures and to carry out all associated works on the said development for an estimated RM90 million.
In turn, VESB is required to complete the construction of the whole development within two years after the launch.
British American Tobacco (Malaysia) Bhd (BAT Malaysia) saw its net profit fall 28.6% to RM172.61 million or 61.5 sen a share for the first quarter ended March 31, 2016 (1QFY16), from RM241.74 million or 85.2 sen a share a year ago, mainly due to weak volume performance.
The group’s domestic volumes for 1QFY16 declined by 34%, compared with the same period last year, mainly as a consequence of the overall pressure on the legal industry, following the November 2015 steep excise increase, which in turn had resulted in a significant increase in illegal cigarette incidence.
Volumes sold in the duty free business increased by 28.9% in 1QFY16, compared with 1QFY15; while contract manufacturing volumes registered a 36.2% year-on-year decline, largely attributed to lower demand from Australia, the Philippines, Singapore and Taiwan.
As a consequence of the weak volume performance, BAT Malaysia’s revenue for 1QFY16 also dropped by 19.9% to RM1.02 billion, from RM1.27 billion in 1QFY15.
Despite weaker 1QFY16 results, BAT Malaysia declared a first interim dividend of 55 sen per share, amounting to RM157.04 million for the financial year ending Dec 31, 2016 (FY16), payable on May 27.
Hong Leong Bank Bhd has initiated legal proceedings for YFG Bhd to sell a piece of land in Damansara through public auction, after the latter had defaulted payments for a loan taken to fund the acquisition of the land.
In a filing with Bursa Malaysia, YFG said its wholly-owned subsidiary YFG Properties Sdn Bhd had on March 21 received a letter, a summons and affidavit filed at the Shah Alam High Court from Hong Leong Bank, that the land be sold by public auction under the National Land Code 1965, to settle the debts owed by YFG to the bank.
Hong Leong Bank is seeking a date for the auction to be fixed, costs and relief deemed fit by the court, among others.
Asia Internet Holdings Sdn Bhd (Asia Internet Holdings), the single largest shareholder of My E.G Services Bhd (MyEG), has emerged as a substantial shareholder of Excel Force MSC Bhd.
Excel Force announced to Bursa Malaysia that Asia Internet Holdings bought 38 million shares or 18% equity stake from its executive director, Sun Chin-Chuan, through off-market trades. Sun is the spouse of the company’s executive chairman and managing director Wang Kuen-Chung.
The shares exchanged hands at RM1 per share today. The stock climbed 2.56% to close at RM1, with 3.68 million shares traded.
Excel Force is a financial services business solutions provider that offers information system and services to banks and stockbroking firms, from front office to back office.
Maxwell International Holdings Bhd said there will be delay of up to two months in releasing its audited financial statements for the financial year ended Dec 31, 2015 (FY15).
The China-based sports shoe maker said its external auditors, Baker Tilly Monteiro Heng (BTMH), would not be able to complete the audit of the group for FY15 on time for submission to the stock exchange by April 30.
It said the delay was because its management in China was in the midst of providing additional documents to Ferrier Hodgson MH Sdn Bhd (FHMH) for the extended audit on substantial advertisement expenses, and that the extended audit has yet to be finalised.
Maxwell had appointed FHMH in December last year to audit advertisement expenditure made in 3QFY15, which led to the company reporting significant losses.
Meanwhile, Maxwell said if it fails to issue its Annual Report 2015 within five market days from the expiry of the time frame, Bursa Malaysia will suspend the trading of its securities.
The suspension will be effected on May 10, it said, adding if it fails to issue the report within six months from the expiry of the timeframe, de-listing procedures will commence.
Sasbadi Holdings Bhd, which publishes educational materials, announced today that its application for a direct sales license has been approved by the Ministry of Domestic Trade, Co-operatives and Consumerism.
In a bourse filing, the book publishing company said the ministry has approved the application of its wholly-owned subsidiary, Mindtech Education Sdn Bhd, for a direct sales licence for two years, under the Direct Sales and Anti-Pyramid Scheme Act 1993.
Mindtech was incorporated in Malaysia on June 26, 2015, and the principal activity of Mindtech is to carry out the business of direct sales and/or marketing, multilevel marketing or network marketing.
Sasbadi said the licence will not have any effect on the issued and paid-up share capital, and shareholdings of the company's substantial shareholders.
“However, the above licence will contribute positively to the earnings and net assets of the Sasbadi group for the financial year ending Aug 31, 2016,” it added.
Meanwhile according to a separate filing, Sasbadi saw its net profit fall 20.38% to RM6.64 million in the second quarter ended Feb 29, 2016 (2QFY16), from RM8.34 million a year earlier, on lower revenue from academic book publishing and increased staff headcount for capacity building.
Revenue rose 5.45% to RM33.86 million, from RM32.11 million in 2QFY15.
Sasbadi has proposed an interim single tier dividend of 1 sen, payable June 9. The ex-date and entitlement date fall on May 17 and May 19 respectively.
Pasukhas Group Bhd has been appointed as the exclusive agent to undertake sales and marketing for TBEA Hengyang Transformer Co Ltd and related services across Malaysia, Singapore, Brunei and Thailand for a period of one year.
The tenure, according to Pasukhas, shall be in force for a period of a year or not later than April 25, 2017, unless terminated before the expiration date according to the termination clause of the IAA.
In a filing with Bursa Malaysia, Pasukhas said its unit Pasukhas Products Sdn Bhd had today entered into an International Agent Agreement (IAA) with TBEA Hengyang Transformer Co Ltd, appointing the former as an exclusive agent for the above purpose.
TBEA Henyang Transformer was established in 1951 and is the leading enterprise in China's power transmission and transformation field, whose production capacity ranks the first in China and the third in the world.
The engineering solutions provider said the signing of the IAA augurs well for the company and is expected to have a positive contribution, going forward.
Seacera Group Bhd inked each agreements with Medium Enterprise Development Bank Malaysia Bhd (SME Bank) and Northern Corridor Implementation Authority for loan facilities up to RM84.9 million for its business expansion plan of setting up a new manufacturing plant on a 33-acre land in Kamunting Industrial Estate, Perak.
According to the tile manufacturer, the loan facilities comprise of RM77.4 million Islamic banking facility from SME Bank and RM7.4 million granted by Unit Peneraju Agenda Bumiputera (TERAJU).
The development of the new manufacturing plant will be separated into three phases, the first phase of expansion will have a double production capacity of 12,000 sq meter per day, as compared to the current 6,000 sq meter production per day. It has potential to increase to 24,000 sq meter per day, after the completion of phase 3.
The total cost for this expansion plan stands at RM170 million, with targeted completion dates of September 2016 (Phase 1), June 2018 (Phase 2) and June 2020 (Phase 3).
Unisem, Reach Energy, Globetronics, PetGas, Nestle, Vivocom, BAT Malaysia, YFG, Excel Force, Maxwell, Sasbadi, Pasukhas Group and Seacera
http://www.theedgemarkets.com/my/article/unisem-reach-energy-globetronics-petgas-nestle-vivocom-bat-malaysia-yfg-excel-force-maxwell
