KUALA LUMPUR (Nov 8): Based on corporate announcements and news flow today, companies in focus on tomorrow (Wednesday, Nov 9) may include: Titijaya, PIE Industrial, FGV, Hartalega, Amcorp Properties, Tien Wah, PetDag, Nationwide Express and Ekovest.
Titijaya Land Bhd has partnered China Railway Engineering Ltd to undertake a mixed development on a 6.06-acre piece of leasehold land at Embassy Row in Jalan Ampang, Kuala Lumpur, with a gross development value of RM2.1 billion.
To formalise the deal, Titijaya's wholly-owned subsidiary Titijaya Resources Sdn Bhd (TRSB) entered into a share agreement with CREC Development (M) Sdn Bhd, Chan Peng Kooh and Rafidah Menan for a proposed acquisition of 10.44 million shares, representing the entire share capital of Ampang Avenue Development Sdn Bhd for a total of RM80 million. Of this total, RM10 million is a purchase consideration, while RM70 million is an assumption of the shareholders' advances from Chan and Rafidah — shareholders of Ampang Avenue.
Ampang Avenue's 90%-owned subsidiary Nipah Valley Sdn Bhd is the land owner. Kuala Lumpur City Hall (DBKL) has given approval for mixed development with a plot ratio of 1:8.
Concurrently, both TRSB and CREC Development have entered into a share sale agreement to construct and develop the piece of land at Embassy Row, Jalan Ampang, into a mixed development.
The land has a market value of RM403 million. Ampang Avenue was appointed as the developer for the development.
PIE Industrial Bhd fell 18 sen or 10% after the electronic-based contract manufacturer reported a 67% year-on-year drop in its third quarter net profit.
PIE Industrial said net profit fell to RM4.6 million in the third quarter ended Sept 30, 2016 (3QFY16), from RM13.97 million. Revenue dropped to RM130.16 million from RM152.54 million.
9MFY16 net profit was down at RM12.83 million from RM33.76 million a year earlier. Revenue slipped to RM385.77 million from RM399.96 million.
Felda Global Ventures Holdings Bhd (FGV) has signed a memorandum of understanding (MoU) with the Sabah Forestry Department to explore the possibility of collaborating with each other.
In a bourse filing, the MoU sets out the understanding and intention of the parties and shall be for a two-year period or any extended period as agreed in writing by the parties.
The collaboration involves the rehabilitation of riparian and forest buffer zone that lies between the forest reserve and FGV estate in Sahabat, Sabah.
Hartalega Holdings Bhd, the world's largest nitrile glove producer, saw its net profit rise 17.9% to RM71.22 million or 4.34 sen a share for the second quarter ended Sept 30, 2016 (2QFY17), from RM60.41 million or 3.69 sen a share a year ago, in line with its continuous expansion in production capacity and increase in demand.
Revenue also increased 15.2% to RM436.98 million in 2QFY17 from RM379.35 million in 2QFY16 on higher sales volume.
However, the group's operating profit margin reduced to 20.1% in 2QFY17 from 24.7% a year ago, basically due to increase in process chemical and natural gas cost.
The group declared a first interim dividend of 2 sen per share for the financial year ending March 31, 2017 (FY17), payable on Dec 29.
For the cumulative six months (1HFY17), its net profit rose 3.5% to RM127.39 million from RM123.09 million, while revenue jumped 19.9% to RM838.8 million from RM699.86 million due to more competitive product selling price.
In a filing to Bursa Malaysia, Hartalega said the operating profit margin reduced to 19.4% in 1HFY17 from 24.8% in 1HFY16, basically due to increase in process chemical cost, natural gas cost, indirect labour and upkeep of plant and machinery.
Amcorp Properties Bhd's net profit for the second quarter ended Sept 30, 2016 (2QFY17), plunged 88.9% to RM1.83 million from RM16.48 million a year earlier.
This was despite a 28.8% increase in revenue to RM52.97 million from RM41.11 million in 2QFY16.
The group, in a bourse filing, said its Malaysian property projects contributed RM33.6 million in revenue, and the renewable energy and contracting division contributed RM19.4 million.
Revenue from the Malaysian properties was mainly derived from sale of development properties (RM30.9 million) and rental income from investment properties (RM2.7 million), it added.
The renewable energy and contracting division's revenue meanwhile came from ventilation and air conditioning contracts (RM15.7 million), coupled with power generation from both mini-hydro and solar projects (RM3.7 million).
Amcorp Properties said for the first half of financial year (1HFY17), the group recorded a net profit of RM6.3 million, a decline of 91.4% from RM73.4 million in 1HFY16. Revenue rose 28.2% to RM96.80 million from RM75.51 million.
Profit before tax for financial year of RM16.3 million was mainly contributed from its overseas properties division, in particular from its joint venture in Japan.
Tien Wah Press Holdings Bhd's net profit plunged 71.5% to RM4.16 million or 3.09 sen a share in the third quarter ended Sept 30, 2016 (3QFY16), from RM14.61 million or 12.64 sen a share a year ago, on lower revenue, lower gross profit margin and retrenchment cost of RM5.1 million.
The printing firm blamed the quarter's unfavourable results on retrenchment arising from the reorganisation of the group's production footprint to improve its strategic positioning to service its customers and reduce operating cost over the longer term.
Revenue for the quarter also declined 13.9% to RM82.93 million from RM96.27 million in 3QFY15, as business was affected by sluggish demand in certain cigarette brand related packaging products, change of pricing of some products to a major customer and the impact of a Vietnam subsidiary that was deconsolidated from Dec 31, 2015, as a subsidiary to a jointly controlled entity.
For the cumulative nine months (9MFY16), the group's net profit fell 28.4% to RM15.88 million from RM22.2 million in 9MFY15, while revenue dropped 8.8% to RM246.49 million from RM270.31 million.
In bourse filing, Tien Wah said its directors opined that the outlook for 2016 continues to be challenging in the volatile global environment.
Petronas Dagangan Bhd (PetDag), a 69.86%-owned subsidiary of Petroliam Nasional Bhd, saw its net profit rise 13.7% to RM248.76 million or 25 sen a share in the third quarter ended Sept 30, 2016 (3QFY16), from RM218.88 million or 22 sen a share a year ago, mainly contributed by its retail business.
Revenue, however, fell 14.9% to RM5.54 billion in 3QFY16 from RM6.51 billion in 3QFY15, mainly due to a decrease in average selling price by 13% coupled with lower sales volume of 2%.
The decrease in average selling price was due to the decrease in Mean of Platts Singapore (MOPS) prices.
It also declared an interim dividend of 14 sen per share amounting to RM139.08 million for the financial year ending Dec 31, 2016 (FY16), payable on Dec 8.
For the cumulative nine months (9MFY16), PetDag's net profit slipped 2.1% to RM683.12 million from RM697.86 million a year ago, on the back of lower revenue of RM15.78 billion in 9MFY16, down 17.1% from RM19.04 billion in 9MFY15.
In a filing to Bursa Malaysia, PetDag said it expects to complete the sale of its subsidiary Thang Long LPG Co Ltd (TLLCL) by the end of 2016. On Sept 30, 2016, TLLCL comprised assets amounting to RM15.9 million less liabilities of RM100,000.
On prospects, PetDag expects the oversupply situation in the global market to remain, at least through the first half of 2017, resulting in continued price volatility. Oil price increased slightly to US$45.90 (RM193.49) per barrel in 3Q16 from US$45.60 per barrel in 2Q16.
Nationwide Express Courier Services Bhd plans to merge its existing courier business with that of Airpak Express (M) Sdn Bhd through the acquisition of the latter's entire issued share capital for RM33.16 million.
In a filing to Bursa Malaysia, Nationwide Express said the proposed acquisition is part of the group's overall strategy to capitalise on the rapid growth in demand for e-commerce and online business activities.
Nationwide Express said the proposed acquisition will also enable the enlarged group to benefit from potential cost savings, improve business efficiencies and achieve economies of scale across group-wide operations, which in turn will help fortify its presence in the courier service industry.
The group today signed a conditional share acquisition agreement to acquire 657,001 shares (90%) and 73,000 shares (10%) in Airpak from Ong Eng Lee and Lim Kew Wan respectively.
The RM33.16 million purchase consideration will be satisfied by RM30 million in cash and the issuance of 6.33 million new shares in Nationwide Express Holdings Bhd (NEHB) at an issue price of 50 sen apiece, which is equivalent to RM3.16 million.
Under the deal, Ong also guarantees a net profit of RM5 million each for the financial year ending July 31, 2017 (FY17), and FY18. It added that any shortfall of the profit will be made good by Ong for both the periods within 14 days after notice is given by Nationwide Express enclosing the audited accounts of Airpak.
Ekovest Bhd has bagged a RM157.25 million contract from DBKL to undertake improvement and beautification works here.
In a statement, Ekovest managing director Datuk Seri Lim Keng Cheng said with the latest contract, the group's total outstanding construction order book stands at RM5.7 billion.
Ekovest said its wholly-owned subsidiary EkoRiver Construction Sdn Bhd has received a letter of acceptance from DBKL for two work packages — Package 1C which stretches from Dataran Merdeka and Jalan Tun Perak to Jalan Tun Tan Cheng Lock and Package 1D which covers Masjid India.
The contract also includes the construction of an interceptor system and related works to improve the river water quality, including the water treatment system along the Sungai Gombak and Sungai Klang under the River of Life project.
Ekovest said the completion period for the works is 104 weeks.
http://www.theedgemarkets.com/my/article/titijaya-pie-industrial-fgv-hartalega-amcorp-properties-tien-wah-petdag-nationwide-express
