KUALA LUMPUR (May 13): Based on corporate announcements and news flow today, companies that may be in focus on Monday (May 16) could include the following: KNM, DNeX, Engtex, Konsortium Transnasional, Pharmaniaga, Kumpulan Perangsang, LKL International and BHIC.
KNM Group Bhd's unit KNM Process Systems Sdn Bhd has clinched US$23.15 million (RM93.31 million) worth of orders for the fabrication of vessels for Tecnicas Reunidas SA.
The contracts involve the fabrication of high-thickness vessels and high-thickness columns, said KNM in a bourse filing. They are expected to last between 16 and 18 months, starting from the respective purchase order dates, and will contribute positively to its earnings for the financial years ending Dec 31, 2016 and 2017.
Dagang Nexchange Bhd (DNeX) recorded a net profit of RM5.37 million or 0.69 sen per share in the first quarter ended March 31, 2016 (1QFY16), 11.5 times higher than the RM467,000 or 6 sen per share recorded a year ago, due to growth in its trade facilitation business, and better operation efficiency.
The group's 1QFY16 revenue increased by 22.3% to RM26.89 million, from RM21.99 million in 1QFY15, mainly due to a 10% growth in the group's business-to-government business and recurring revenue from leasing of directional drilling equipment from the energy division.
DNeX announced a single-tier interim dividend of one sen a share, which will be payable on June 15. This will translate into a dividend yield of 4.55%, based on its closing of 22 sen today.
"The completion of the acquisition of OGPC Group and proposed Ping subscription are expected in [the] third quarter of 2016 (3QFY16), [and] will further enhance DNeX shareholders' value in the medium and long term," it said on its prospects.
Pipe maker Engtex Group Bhd has acquired 40% equity interest in Englen Manufacturing Sdn Bhd (EMfg) and Englen Metals Sdn Bhd (EMSB) respectively, from vendor Lee Wee Kok for RM2.65 million.
In two separate filings with Bursa Malaysia today, Engtex said it wanted to take full control of the affairs and business direction of EMfg, a steel-related products manufacturer, and EMSB, a steel products distributor.
The purchase consideration was funded by internally generated funds, and subsequently the companies would become wholly-owned subsidiaries of Engtex.
Konsortium Transnasional Bhd has decided not to go ahead with its three-for-two rights issue that was first posited in September 2014, citing "unfavourable market conditions which are not conducive for the implementation of the rights issue".
In a filing with Bursa Malaysia, the public bus operator said it will nonetheless continue to explore other proposals to address its capital requirements.
Pharmaniaga Bhd posted a 42.2% lower net profit at RM18.8 million in its first quarter ended March 31, 2016 (1QFY16), from RM31.8 million last year, primarily due to increased expenses, including selling and distribution costs, amortisation of the pharmacy information system solution, and higher finance costs.
Revenue in 1QFY16 grew by 18.5% to RM559.2 million, from RM471.9 million in 1QFY15, because of higher demand from government hospitals under both the concession and non-concession businesses, and stronger contributions from the group's Indonesian operations, its bourse filing today showed.
The group declared a first interim dividend of four sen per share for FY16, payable on June 28.
Kumpulan Perangsang Selangor Bhd (KPS) has bought a 60% stake in the licence holder of the King Koil mattress brand, a company currently owned by Can-One Bhd's director and major shareholder, Yeoh Jin Hoe. The price tag for the stake is US$28.8 million (quoted as RM115.93 million).
In a filing with Bursa Malaysia today, KPS said King Koil mattresses have been generating profits with margins of over 25% in earnings before interest, taxation, depreciation, and amortisation (Ebitda) for the five years up to 2014.
KPS signed a share sale agreement with Yeoh today for it (or a special purpose vehicle) to buy a 60% stake in Kaiserkorp Corp Sdn Bhd.
King Koil products are available in over 80 countries via agreements with 31 licensees. In the US today, King Koil is ranked the seventh largest bedding producer in terms of sales, said KPS.
LKL International Bhd, a hospital furniture maker, will make its debut on the ACE Market at an issue price of 20 sen. The Malaysian public portion, comprising 8 million shares, was oversubscribed by 92.84 times.
Boustead Heavy Industries Corp Bhd (BHIC) posted a net loss of RM19.04 million in its first quarter ended March 31, 2016 (1QFY16), from a net profit of RM8.4 million a year ago.
BHIC said the loss was a result of lower contribution from defence-related maintenance, repair and operations (MRO) activities. There was also no new oil and gas projects, no contribution from commercial shipbuilding activities and negative contribution from its joint ventures and associates in 1QFY16.
Revenue, which came in 3.1% higher at RM63 million in 1QFY16 compared with RM61.1 million last year, was supported by defence-related MRO activities, BHIC said in a bourse filing.
In separate statement, BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the group expects the oil and gas sector to remain challenging, in view of the present competitive environment and capital expenditure cuts announced by oil majors.
Companies in the news - KNM, DNeX, Engtex, Konsortium Transnasional, Pharmaniaga, Kumpulan Perangsang, LKL International and BHIC
http://www.theedgemarkets.com/my/article/knm-dnex-engtex-konsortium-transnasional-pharmaniaga-kumpulan-perangsang-lkl-international
