KUALA LUMPUR (May 11): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Thursday, May 12) could include the following: TSR Capital, PetDag, Gas Malaysia, Paramount Corp, LBS Bina, ML Global, Iris, CAB Cakaran, Kumpulan Jetson and PRG.
TSR Capital Bhd, a construction and civil engineering outfit, is diversifying into the oil and gas (O&G) industry.
In a bourse filing, TSR Capital said it has entered into a memorandum of agreement (MoA) with two individuals, Mohamad Othman and Datuk Seri Dr Prushotman Ragawan, to set up a special purpose vehicle (SPV) to for the O&G venture.
The SPV will be eventually listed on Bursa Malaysia.
Petronas Dagangan Bhd, an O&G product marketer, saw its net profit rise 6.63% to RM219.4 million for the first quarter ended March 31, 2016 (1QFY16) compared with RM205.77 million a year ago, on higher other income, though the effects of that was partially negated by lower gross profit.
Quarterly revenue declined 19.18% to RM4.93 billion against RM6.1 billion last year, mainly due to a 20% decrease in average selling price.
The group declared an interim dividend of 12 sen per share for the quarter ended March 31, payable on June 8.
Gas Malaysia Bhd, a natural gas distributor, said it is allocating up to RM140 million for its expansion plans this year, which includes growing its natural gas distribution system network in Peninsular Malaysia.
After its annual general meeting today, its chief executive officer Ahmad Hashimi Abdul Manap said the group expects to build up to 100km new pipeline in 2016, across several states.
He noted that the group laid 74km of pipeline in 2015, bringing its pipeline length to 2,139km.
In terms of earnings for its financial year ending Dec 31, 2016, he hopes to see better performance, in line with the growth in volume and its customer base.
Earlier today, Gas Malaysia announced a net profit of RM31.38 million in the first quarter ended March 31, 2016 (1QFY16), up 10.14% from RM28.49 million a year ago, mainly on higher gross profits, in line with increase in its volume of gas sold.
Revenue rose 26.19% to RM961.04 million from RM761.59 million in 1QFY15, mainly due to higher volume of gas sold and the upward revision of natural gas tariff.
Property developer Paramount Corporation Bhd saw its net profit plunge 58.21% to RM9.69 million in the first quarter ended March 31, 2016 (1QFY16) from RM23.19 million a year ago, due to dented sales in its property division.
For the same reason, its revenue declined 31.22% to RM113.33 million in 1QFY16 from RM165 million in 1QFY15, its bourse filing today showed.
On prospects, it said the property market will likely not recover any time soon from its current slump.
As such, its property division is moving to broaden its offering of affordable homes in addition to current developments in Greenwoods Salak Perdana in Selangor and Bukit Banyan in Kedah, where demand remains positive.
Property company LBS Bina Group Bhd's unconditional mandatory takeover offer of ML Global Bhd at 56 sen per share and six sen per warrant was deemed not fair and not reasonable by independent adviser MainStreet Advisers Sdn Bhd.
As such, the independent adviser has recommended that shareholders reject the offer.
MainStreet Advisers said ML Global's shares and warrants have been trading above the offer price for the most recent period up to the latest practicable day (LPD) on May 5. The offer price represents a discount of 6.67% to the LPD for its shares, and a discount of 80.65% to the volume weighted average market price for the period between the latest trading day and LPD, it explained.
Iris Corp Bhd is disposing of a 29.83% stake in Versatile Creative Bhd for RM21 million, mainly to pare down borrowings.
The aviation security systems developer said it has entered into a sale and purchase agreement (SPA) with Edmund Fong R Boon for the proposed disposal of the stake in Versatile Creative.
It acquired the stake on Sept 23, 2013 for RM17.5 million or 50 sen apiece. Versatile Creative is a Bursa Malaysia-listed paperboard packaging products manufacturer and Iris was its largest shareholder, with a 37.34% stake, held via Iris Healthcare Sdn Bhd, as at July 29, 2015.
Following the disposal, Iris should still control 8.81 million shares or a 7.34% stake.
An indirect unit of CAB Cakaran Corp Bhd is buying a freehold land measuring 3.16 hectares in Pontian, Johor, for RM1.55 million, to expand its poultry farms in the southern region of Peninsular Malaysia.
In a bourse filing, CAB Cakaran said its 51%-owned subsidiary, CAB Cakaran Sdn Bhd, has inked a SPA with Banghong Livestock Trading Sdn Bhd for the acquisition.
Builder cum property developer Kumpulan Jetson Bhd's 40%-owned property development associate, Citarasa Haruman Sdn Bhd, has received RM15 million in settlement from LBCN Development Sdn Bhd, Mujur Zaman Sdn Bhd and Liputan Canggih Sdn Bhd for a piece of land that the Selangor government had compulsorily acquired.
In a bourse filing, the company also said Citarasa Haruman has agreed to revoke its written agreement with LBCN in 2007, pertaining to the joint development of the land in Ijok, Selangor, and withdraw its judicial review against the Selangor government, and its agencies Lembaga Perumahan Dan Hartanah Selangor and Pentadbir Tanah Kuala Selangor.
With that, Citarasa Haruman received RM15 million in full and final settlement of all money due and owing to it under its cancelled SPA and joint development agreement.
PRG Holdings Bhd is proposing the subdivision of every one existing share into two split shares to enhance the stock's marketability and trading liquidity.
In a bourse filing, PRG said the entitlement date has yet to be fixed.
To date, PRG's issued and paid-up share capital stands at RM74.02 million comprising 148.05 million shares (including 208,900 treasury shares) and 51.33 million outstanding warrants 2014/2019.
Each outstanding warrant is exercisable into one new PRG share at the exercise price of 75 sen apiece.
PRG is involved in the manufacturing, property development and construction businesses.
Companies in the news - TSR Capital, PetDag, Gas Malaysia, Paramount Corp, LBS Bina, ML Global, Iris, CAB Cakaran, Kumpulan Jetson and PRG
http://www.theedgemarkets.com/my/article/tsr-capital-petdag-gas-malaysia-paramount-corp-lbs-bina-ml-global-iris-cab-cakaran-kumpulan
