KUALA LUMPUR (Dec 27): Based on corporate announcements and news flow today, stocks in focus tomorrow (Wendesday, Dec 28) may include: Kuantan Flour Mills Bhd (KFM), Mitrajaya Holdings Bhd, Inix Technologies Holdings Bhd, Sedania Innovator Bhd, Selangor Properties Bhd and Maxis Communications Bhd.
Kuantan Flour Mills Bhd (KFM) said it has inked a Memorandum of Understanding (MoU) with Lotus Essential Sdn Bhd for contract manufacturing, as well as an offtake agreement for provision of flour-milling activities, besides Lotus considering a strategic investment in KFM.
According to a bourse filing today, the MoU which sets out mutual understanding and intention of the parties to initiate the discussions to enter into agreements, will take effect from Dec 27 (today) for six months.
“The parties are desirous to enter into a contract manufacturing and offtake agreement for the provision of flour milling activities by KFM to Lotus; and considers a strategic investment by Lotus Essential into KFM,” the filing read.
As part of its proposal to restructure its debt and reconstruct its business, KFM is proposing to carry out an equity fundraising exercise via a rights issue and special issue of its shares, and [to] cooperate as well as [to] collaborate with Lotus in carrying out flour milling activities, and trading of flour and food related products, it said.
Mitrajaya Holdings Bhd has won a contract worth RM183.44 million from concessionaire West Coast Expressway Sdn Bhd to build Section 2 of the West Coast Expressway (WCE) from the South Klang Valley Expressway interchange to the Shah Alam Expressway interchange.
Mitrajaya said in its filing to Bursa Malaysia that the award was given to its wholly-owned subsidiary, Pembinaan Mitrajaya Sdn Bhd.
The WCE, which will connect the main coastal towns, including Klang, Kuala Selangor, Teluk Intan, Setiawan, Manjung and Hutan Melintang among others (which are currently only connected via a trunk road), is now being constructed and is expected to be completed in 2019.
"The contract is for [a] duration of 30 months, commencing from the date of site possession which would be advised in due course, and the contract is expected to contribute positively to Mitrajaya Group's future earnings," the group said.
Inix Technologies Holdings Bhd, which posted a loss after tax of RM4.96 million for the financial year ended July 31, 2016; versus a loss after tax of RM47,897 a year earlier, continues to be dragged down by its IT segment, as it looks to diversify into mobile solutions and dredging works.
According to its executive director Mohd Anuar Mohd Hanadzlah, the losses were attributed to higher administrative expenses that have yet to be realised as income.
"The IT segment has not been performing as well as expected, which is our reason for diversifying into mobile applications and dredging," Mohd Anuar told reporters, after the company's annual general meeting today.
He added that the group expects continued income from Hyper QB Sdn Bhd, a mobile solutions company in which Inix had acquired a 25% equity interest in April 2016. Additionally, it expects to gain from a 25% dividend announced by Hyper QB in the coming financial period.
Sedania Innovator Bhd’s wholly-owned subsidiary IDOTTV Sdn Bhd is partnering with Iscada Net Sdn Bhd (IS.NET) to provide Internet of Things (IoT) solutions to the Fire and Rescue Department of Malaysia (JBPM) for a period of five years, effective Dec 21.
In a filing with Bursa Malaysia today, Sedania said IDOTTV had on Dec 20 entered into a strategic partnership agreement with IS.NET, a technology provider for advanced integrated fire detection solutions, for the venture.
IS.NET has been appointed by JBPM as its direct fire safety link service provider.
IDOTTV is a platform provider and service enabler specialising in providing ancillary services to mobile subscribers in Malaysia and Bangladesh and will be responsible for designing, developing, procuring and supplying IoT solutions in the form of iFSP devices to IS.NET.
The agreement will see IDOTTV and IS.NET collaborating to undertake the provision of iSNET Fire Safety Portal (iFSP) under Sistem Pengawasan Kebakaran Automatik (SPKA) for JBPM.
The number of the devices to be designed, developed, procured and supplied to IS.NET is for a minimum 6,300 designated buildings identified by JBPM for a period of five years, which may increase from time to time, when JBPM adds on to the designated building list.
IDOTTV will be supplying the iFSP devices to IS.NET at a minimum selling price of RM2,300 per unit, excluding goods and services tax.
Selangor Properties Bhd’s net profit for the fourth quarter ended Oct 31, 2016 (4QFY16) plunged 88.1% to RM57.40 million, from RM483.82 million a year ago.
The group said in its filing to the bourse today that the decline was attributed to lower profit from its property investment division; higher losses from its property development segment due to marketing, corporate and administrative costs, in addition to zero sales of Aira Residence units; as well as foreign exchange loss of RM15.8 million as the ringgit strengthened against the U.S. dollar.
Revenue, on the other hand, rose 28.6% to RM35.35 million, from RM27.48 million in 4QFY15. Higher topline contributions were posted by the property investment and investment holding divisions, driven by higher occupancy and higher dividend income from overseas investments respectively, as well as its operations in Australia.
For FY16 as a whole, Selangor Properties’ net profit tumbled 88.7% to RM67.36 million, from RM593.68 million in FY15. Revenue climbed 22.4% from RM99.49 million to RM121.82 million.
The group did not recommend any dividend.
Going forward, Selangor Properties expects operations in Malaysia and Australia to remain positive in 2017. However, in view of its overseas investments, the group’s profitability will be affected by fluctuations in foreign currency exchange.
In a separate filing, Selangor Properties said it has undertaken a revaluation exercise on all its investment properties to comply with the accounting standards under the Malaysian Financial Reporting Standards (MFRS) 140 on Investment Property.
There is a revaluation surplus for an aggregate amount of RM20.74 million, following the revaluation exercise which will lead to an increase of six sen in the net asset per share of the group.
The valuation on the asset was conducted by VPC Alliance (KL) Sdn Bhd as at Oct 31, 2016. The total value placed on the asset by the valuer is RM637.55 million.
In an effort to streamline its group structure, Maxis Communications Bhd has agreed to acquire the remaining 25% stake in Advanced Wireless Technlogies Sdn Bhd (AWT) from MBNS Multimedia Sdn Bhd (MMT).
The acquisition will see RM15.83 million exchange hands, along with a requirement for Maxis to purchase RM3 million worth of goods and services from MMT, for a total purchase price of RM18.83 million, paid via internal funding.
Maxis had a 75% stake in AWT prior to the agreement, whereas MMT — which is a wholly-owned unit of Astro Holdings Bhd — controlled the remaining 25%. Following the move, AWT will become a wholly-owned subsidiary of Maxis.
AWT in turn, wholly-owns UMTS Malaysia Sdn Bhd, the holder of a 2100MHz spectrum assignment from Malaysian Communications and Multimedia Commission (MCMC) for 15 years, which is due on April 1, 2018.
The acquisition is expected to accelerate Maxis’ decision-making on matters surrounding the 2100MHz spectrum assignment, which is used for third generation (3G) wireless Universal Mobile Telecommunications System (UMTS) network.
http://www.theedgemarkets.com/my/article/kuantan-flour-mills-mitrajaya-inix-sedania-selangor-properties-and-maxis
